Whose fault is it ??

Just want to share this, i find it funny. Interestingly, when i happen to have a lunch chat with my friend recently, he told me that he just got a small windfall while placing an online order of a penny stock. To his surprise and disbelief that when he checks the matched order, it was 10 cents below his ordered price, which means, a 40 cents stocks which was placed and it matched at 30 cents. The price jumps back to 41 cents right after that where he quickly sold it for a quick intra-day profit. I wonder is a computer glitch or human error ??? Walau er.... This kind of thing also can happened ????

Magnum may unveil big special dividend

KUALA LUMPUR: Magnum Corp Bhd is finally set to proceed with its long-expected capital management plan as it may soon announce a bumper payment to shareholders.
A source said the company, subject to board approval at a meeting on Tuesday, could announce a special dividend of between 60 and 70 sen a share.
The board may give the go-ahead for the numbers forecast operator (NFO) to distribute its vast cash pile of more than RM700mil.
Last year, Magnum raised its dividend to 14 sen a share from 10 sen. The return of cash will benefit shareholders and none more greatly than Multi-Purpose Holdings Bhd (MPHB), which owns 51% of Magnum.
The cash from Magnum may help MPHB pare down debt but the source said MPHB also had a good story to tell.
MPHB, the source said, was set to announce a record profit for its first quarter ended March 31, thanks to Magnum's strong NFO business and a robust stockbroking business owing to the bull run on Bursa Malaysia.
MPHB announced a pre-tax profit of RM86.4mil and a net profit of RM60.5mil, or 6.3 sen a share, for its fourth quarter.

Which high cap stock will replace Maxis on KLCI?

Below was extracted from The Star for you reading pleasure :-

PETALING JAYA: The Kuala Lumpur Composite Index (KLCI) is going to miss some significant members with Maxis Communications Bhd on its way out of Bursa Malaysia alongside Island & Peninsular Bhd (I&P) and Malakoff Bhd, which are also being taken private by their respective owners.

The three companies have a combined capitalisation of close to RM50bil, representing almost 7% of the benchmark's total market capitalisation (market cap) based on yesterday's closing prices.

Maxis closed RM2.30 higher at RM15.30 while I&P and Malakoff were unchanged at RM2.33 and RM10.30 respectively.

Earlier this week, business tycoon T. Ananda Krishnan made a 20% premium offer of RM15.60 per share to take full control of Maxis.

Last week, Permodalan Nasional Bhd announced plans to take I&P private by buying the remaining shares it does not own for RM2.35 each.

Malakoff, on the other hand, will be delisted at the end of this month on completion of the sale of its assets to parent MMC Corp Bhd.

A fund manager noted that the liquidity in these counters would have to be distributed elsewhere. “It means more money will be going into other index-linked counters,” he said.

While the funds could move to new entrants to the benchmark index, there were not many blue chips that were not already part of the KLCI, the fund manager added.

Bursa Malaysia chief executive officer Datuk Yusli Mohamed Yusoff said in an e-mail reply to StarBiz that the exchange would implement “a standard process'' to replace any index-linked stocks that had been de-listed.

“The number of index constituents in the KLCI is fixed at 100. The weightage of each constituent is distributed by way of market cap, with bigger companies assuming higher weightage,” he added.

A head of research at a local brokerage said: “Ultimately it depends on how Bursa wants to replace the companies. The new entrants don't have to be of similar size to those that are being dropped.''

He said based on sectors, YTL Power Bhd could represent the power industry and Green Packet Bhd the telecommunication sector.

Other potential candidates were Nestle (M) Bhd, Dutch Lady Milk Industries Bhd and JT International Bhd, the research head said.

“Liquidity and free float could be an issue. But there are stocks on the KLCI currently which are low in liquidity.

“Market capitalisation is probably one of the biggest single factors,'' added Pong Teng Siew, head of research at MIMB Investment Bank.

Monthly Portfolio 28-April-2007

There is a lot of movement in my portfolio this month. Firstly, i have adjusted the buying price accordingly after receiving the dividend from BJTOTO and MAYBULK. I have added 2000 units of LONBISC for a price of 1.68 and 1.64 respectively. Thus, making my total holding of LONBISC to 4000 units for an average price of 1.68, the reason for increasing the number is simple - "long term & good dividend payout". If you follow my previous posts closely, you will know that i'm one that favour on dividend stocks, that is my style. I always believe that dividend stocks are defensive stocks, irrespective whether the market goes up or down, i have a peace of mind holding on to my stocks unless some drastic or unexpected thing that tarnish the company image happened like terribly bad financial result, company being wind down due to poor governance, a catastrophic that causes the company's core business no longer a niche market and etc...

Secondly, i also bought in 2000 units of RESORT for an average price of 3.40 and 5000 units of YILAI at 1.23. These are my biggest buying spree so far for this month. Below is my latest portfolio, till then, "Happy trading".

Good Article - What triggers a downfall in the market?

Ooi Kok Hwa is a licensed investment adviser and managing partner of MRR Consulting and he writes on 'Personal Investing'.
AS a result of China's higher-than-expected economic growth of 11.1% and fear of possible further interest rate hikes in China, regional markets, including Malaysia, fell sharply last Thursday.
This was the second time after Chinese New Year (CNY) that a drop in Chinese stock prices rattled the markets across Asia.
According to Lee In Ho in his study on Market Crashes and Informational Avalanches, there are four stages in a market crash. They are boom, euphoria, trigger and panic.
Under the boom stage, the market will normally have a main theme that excites everyone about stocks.
In Malaysia, several positive measures under the Ninth Ma- laysia Plan got investors excited about the construction and property sectors. At this stage, this is seldom a bubble as companies continue showing good corporate results. A bubble will be created at the euphoria stage. The unjustified extrapolation of future earnings and the revision of higher target prices by research analysts can cause overconfidence in companies’ future performance.
A bubble will start to take shape when the general public reacts to this overconfidence. An irrational exuberance will occur when market prices and expectations about future values are far beyond the fundamentals of the companies.
However, no one will know when the rise will stop. A market will resume its upward trend until something triggers the downfall.
Usually, the stock prices get higher and steeper just before the market crash.
At the trigger stage, private information will reach a threshold that triggers other traders to alter their behaviour. At this critical situation, when almost everyone is at irrational exuberance, any event can trigger the market to tumble.
In January 1994, our stock market put the blame on former finance minister Tun Daim Zainuddin for saying that he had sold all his shares because prices had reached dangerous levels.
Until now, nobody can really understand the main reason behind the sharp plunge on the Shanghai Index right after the CNY.
According to some fund managers in China, the selling was mainly due to investors panicking when they noticed that their friends were selling stocks.
A famous researcher in behavioural finance, Robert Shiller, conducted a survey by asking institutional and individual investors what was in their mind during the stock market crash in 1987. One conclusion he drew was that the crash was due to people reacting to each other with heightened attention and emotion.
Investors seemed to follow what other investors were doing. As a result of action and reaction, a feedback loop was created when everyone had a simultaneous reaction to common stimuli.
A market crash is described as a process that corrects a public belief that is inconsistent with the current distribution of private information. The severity of a crash will depend on whether the market is filled by “new generation” investors or experienced traders.
“New generation” investors do not know anything about the stock market but are greedy and want to get quick money from it. A market will not crash if it has experienced traders who know how to control risk and when to cut losses.
However, if a market is filled by “new generation” investors with no holding power and do not know when is the right time to sell a stock, any sharp drop in prices could result in panic selling. At this panic stage, the fear of further drops could cause big fall in prices.
When will the stock market crash again?
My usual answer for this question is the stock market will not crash as long as you continue to worry about when it will crash. The market will crash at the time when you least expect it to happen. Investors should remember that the market always performs beyond your expectations.
We should not be too worried about when the market will crash. Instead, we should consistently review our portfolio and sell those stocks whose prices have gone beyond their intrinsic value.

Famous Quote

Reveals the high dividend yielding stocks

Below is the compiled list of all high dividend yielding stocks. Those in light green are my preference at the moment. Take a look you may find your preferred stocks here. Bear in mind that these companies might not pay the same amount of dividend as they used to be, is very much depend on the company performance & result that lead them for consistent dividend payout.

Public Bank (1295, RM 9.25) first-quarter net profit up 23%

1st Qtr Net profit = 476million

Estimated annualise EPS = 56sen

Maintain target price = RM9.80

More companies raising dividend

Hey, check this out:-

By YEOW POOI LING (Source : The Star 12 April 2007)
PETALING JAYA: High dividend yield stocks will provide support amid lingering concerns of market correction or weakening in the US economy.
OSK Investment Bank head of research Kenny Yee said dividend stocks helped “mitigate volatility in the portfolio” as they were more stable in terms of share price movement.
He noted that more and more companies were raising their dividend to reward shareholders.
“Companies realise that paying good dividends helps boost the share price as well as increase efficiency in capital management,” he said, adding that it also improved return on equity.
For example, Public Bank Bhd declared a total dividend of 60 sen per share for the year ended Dec 31, 2006. Since the dividend’s ex-date on March 16, the share price has appreciated 5.7% to RM9.20 yesterday, giving a total return of RM1.10 per share or total shareholders’ return of 12.6%.
Meanwhile, MIMB Investment Bank head of research Pong Teng Siew said during a market rally, investors tended to look for capital gain, hence stocks with attractive dividend yield only attracted “a certain type of investors.”

He said taking a defensive approach during a bull run might result in the loss of opportunity to make capital gains due to the low volatility of high dividend yielding stocks.
“Usually in a bull run like now, investors buy for capital gain and not for stable income because they do not want to risk under-performing the market,” Pong added.
Companies that had a stable recurring income would be able to sustain paying out high dividends, he said, citing examples like Chemical Co of Malaysia Bhd, Bintulu Port Holdings Bhd and Highlands & Lowlands Bhd.

Monthly Portfolio 30-March-2007

This month, I have disposed 2000 units of MAYBULK at a price of $3.52 and reducing my current holding to 2000 units. My act to do so is in fact to buy back the same units at a lower price and hopefully make some different out of it but i must admit i make a mistake here, my deed cost me a price where not only i won't be able to buy back, i may missed out the dividend and the impending bonus issue later on. I have bought 2000 units of LONBISC at $1.70 in my portfolio, high dividend payout (8%-9%) is part of my reason of buying this stock, further more the down side for LONBISC is low. Being a long term player, one should hold their stocks as long as he/she want, because over time we will tend to benefit from it. Another counter which is under my greate interest is AXREIT. This counter provide high dividend/income distribution of about 7%-8% each year, which indeed, i find it very attractive and it fall under my cup of tea where my focus is on high yielding generating stocks. Velo's blog has more detail writeup on this counter. Would consider buying AXREIT if price fall below $1.70. I have just received a dividend payout from PBBANK recently and it was a good dividend payout in fact where $400 per 1000 units was given out to its shareholder. I have adjusted the buying price for PBBANK in my portfolio accordingly (refer to below). Until then happy trading.

KLCI - 23rd March 2007

KLCI inched higher to close at 1235.65. KLCI is definitely on the up trend and the momentum seem to have strengthen for the past week and the next level will be testing 1250 point and i believe that the KLCI is likely to break this level. Advise to hang on to your stocks for a little bit longer.

BJTOTO (1562, RM4.72) Something Fishy ?

Interestingly & particularly, this counter has drawn my attention lately due to the active share buyback from the company. See below chart:-

With the active shares buyback the price has inched further and even breakout from the price that I set for at $4.74 today. Hence, the upside possibility is high if nothing suspicious arouse. The next level that the price may head to is $4.90. RSI +, MACD crossed over & price are heading north, thus, at this moment would recommend a trading buy on this counter.

KLCI - 16th March 2007

KLCI closed 1182.2 point on 16/3/2007 and the volume continues to slide. In the near term KLCI need to breakout from the 1215 level to surge higher else it will be very much on a consolidation stage.

KLCI - 9th March 2007

KLCI rebounded and is testing its psycological level at 1200 points, once it surpass this level the next level will be testing at 1217. Will this rebounce sustain ? Transaction volume is in a declining stage as shown in the above chart, does this means a sign of exiting by the investors ? Will history repeat itself of year 93-94 ? Looks very similar. Be careful folks, if possible try reducing your holdings. At this moment just wait and see whether the upside prevail and bringing back the confidence level to the market.

Portfolio 04-March-2007

Obviously, with the down fall, my portfolio shrunk as compare to previous month. However, i have added 1000 units of BJTOTO in my portfolio but i must reckon that i got it on the high side. Will accumulate further if price fall further, this will certainly apply to my other stocks as well. Being a long term player, one should not bother much on the correction as this create opportunity for us to grab more quality stocks in our portfolio. I foresee KLCI will drop further next week, am now standing by to grab more stocks in case it fall to my level of price. Once again may the best price be yours. Happy trading.

KLCI - 3th March 2007

KLCI closed 1164.68 on Friday 2/3/2007. The down turn of KLCI started on Monday 26/2/2007 and have been consecutively down for the rest of the days.

26/2/2007 -- 1272.87 (-10.6)

27/2/2007 -- 1237.08 (-35.79)

28/2/2007 -- 1196.45 (-40.63)

1/3/2007 -- 1180.91 (-15.54)

2/3/2007 -- 1164.68 (-16.23)

Needless to say, no matter how good was your recommendations are. It all turn out to be otherwise, that's no doubt about it. The question is will the KLCI find it footing and recover next week?? I am negetive to it. However this create chance for us to grab some quality stocks which we may have missed out earlier. The market have been bullish since last July 2006, it is time for a dip though this may have been affected by the overall worldwide market down turn. In every situation there is an opportunity, so find it and seize it. May the best price be yours.

Buying List/Ideas

Stock Name : SILVER (7136, RM0.53)
Recommendation : BUY


Stock Name : NEXTNAT (0096, RM0.675)
Recommendation : BUY


Stock Name : MAYBULK (5077, RM3.48)
Recommendation : BUY


Stock Name : GOODWAY (7192, RM0.78)
Recommendation : BUY


Stock Name : EKOWOOD (5091, RM0.94)
Recommendation : BUY

Stock Name : CSCENIC (7202, RM0.92)

Recommendation : BUY

Happy trading...

CARLSBG (2836, RM5.50)

Carlsberg’s financial year end net profit 85.904 million decrease by 3.13% and a final dividend 7.5sen & special dividend 24.5sen less tax was declared. As I mentioned earlier in my post normally the bigger portion of dividend will be declared around this time, the question is will this poor result constitute to a price drop in Carlsberg share or a total 32sen dividend is enough to cushion the drop or spite up the price?
One should not expect much on Carlsberg as this is the nature of this share all this while. I doubt the result will have any great impact on share price in fact it might surge further if it able to break through the resistant price at RM5.60 (refer to chart). Carlsberg is currently on the uptrend & always remain for dividend play in my portfolio and I would recommend HOLD on this stock.

PBBANK (1295, RM9.00)

Considering the above record, which of the banking stock would you preferred? My selection criteria are simple, first, which one of the above provides me the best dividend yield and second, what’s the recommendation from the broker. Undoubtedly, PBBANK met my criteria for this instance. Firstly, why am I stressing so much on dividend payout? The reason is simple, dividend provide cushion and regular income stream in case your stock turn south. On the other angle, dividend gives good return value to your investment if stock price appreciated. In the long run it certainly benefited. Secondly, brokers recommendation is usually has it own potential value there as these are public researches normally reflect the true picture of a company and what the market think not basing on own assumption. Thus, potentially market will tend to follow or agreed rather than objecting it but again is it the right time to acquire? Timing plays an important role as during bull time one may tend to enter a higher price and during bear time you may lucky to get it cheaper. Technically, PPBANK is on the uptrend but at this juncture I would buy on weakness.

Portfolio 04-Feb-2007

Last week, try placing BJTOTO at $4.60 but did not get any as the selling are low at this price. However have increased my portfolio by buying CARLSBG at $5.25. There are two simple reasons for it, firstly, i am a long term player and the CNY is near, certainly the beer consumption is high during this festive season and secondly this stock hasn't move much as compare to others and usually it will declare its dividend somewhere around this time and normally is the bigger portion of the dividend declared. CARLSBG is certainly a good stock for dividend play.