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Friday, December 30, 2011

Promotion - Cheapest Brokerage $0.20 per trade

Look at the following brokerage and you determine whether it is the lowest brokerage / commission or not. Per trade is only $0.20. There are a few simple conditions that need to be met.

Terms and Conditions:
It has be an online trade and cash upfront (for buying). 

You still have to pay your own stamp duty and clearing fee.

Only one matched price is allowed. If there is more than one price being matched, a surcharge (extra charges) of $1.00 for each additional price.

Maximum quantity is 5,000 shares. There will be a surcharge of $1.00 for each additional 5,000 shares.

Maximum value is $10,000. There will be a surcharge of $10.00 for each additional $10,000.

You can only key-in one order. There will be a surcharge of $1.00 for each additional order, amendment or cancellation.

You have to book your brokerage now and fix a date that you want to trade. The trade date has to be at least 3 months from your booking date.

Upon booking, you have to pay all fees upfront such as stamp duty, clearing fee, and all surcharge etc. Non-refundable.

If the actual brokerage plus all charges are more than what you have paid during booking, there will be a surcharge of 50% on the difference.


After knowing the terms and conditions, you think this can be the cheapest brokerage? Stamp duty and clearing fee you need to pay, that is very normal. As long as you trade less than 5,000 shares and less than $10,000, with one order and one price, you only need to pay $0.20. I think this is the cheapest.


NOW EVERYONE CAN TRADE IN STOCK MARKET


Note:
The above is just my own imagination. There is no such thing.


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What is PEGGY Method in Stock Market, here.
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Thursday, December 29, 2011

52 Ways of Making Money in Stock Market - Part 28/52 - Earn Interest in Trust Account

Earn Interest in Trust Account. 
Do you know that your money in your  your trading account can earn you interest? They called it Trust Account.

The interest rate that you earn is actually quite high, higher than most Bank Savings Account and Current Account. Slightly lower than FD. Therefore, better than put in most of your Bank current or savings account.

Don’t always take out your sales proceed, leave it there.

Once your cheque is in the trust account, most brokers will let you earn interest immediate and no need to wait till your cheque cleared.

Especially during long public holiday, you may put in a cheque at the end of the working day and start earning interest for the next few public holidays plus weekend. Because the money has not debited from your bank current account, you also continue to earn interest from your current account, so you are actually earning interest from two accounts.

Put in the trust account if:
If you plan to buy shares soon.

You plan to use it in less than a month, so, unable to place in FD.

You are not sure when you need the money. In trust account you can withdraw anytime without penalty. But in FD premature withdrawal will be hit by penalty (interest forfeited)



Withdraw from Trust account if:
You are not using the money for more than a month, so better place in FD.


RISKS, LIMITATIONS OR DIFFICULTIES:

Don’t put in Trust account if you may need it anytime and quite urgent. This is because brokers are closed on weekend (no cheque or ATM for trust account) and most broker need 24 hours to process.

The interest rate is lower than FD, so in longer period better put in FD.



OPINION:

Check your savings and current account interest rate, superb low. Please check with your remisier or dealer on the interest rate for trust account.

Plan your fund so that you benefited from the interest in Trust Account.

Although some brokers need 24 hours to process, they may process speedily for you if for urgent case and can also credit straight to your bank account (without issuing you cheque). Do check with your remisier or dealer.

But please be reminded that brokers are closed on weekend (no cheque or ATM for trust account) and most broker need 24 hours to process, therefore you can’t use it for emergency purposes.


For more info on 52 Ways of Making Money in Stock Market……..



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Wednesday, December 28, 2011

Bayu @ Pandan Jaya review

This afternoon went to Bayu @ Pandan Jaya, total 3 blocks. Block B and Block C have been fully sold, except one middle unit and one corner unit at the highest floor and the price is RM553k and RM541k respectively. They said Block A will be open for sale mid of January 2012.
The location is immediately after the Pandan Jaya LRT station. Block A is nearest, just after the car park of the LRT station. It is along the LRT track heading the MRR2 direction. But in front of Block A, there is a water treatment plant.

The starting price is RM450k and I randomly picked a unit on 7th floor, the price is RM499,000.

They only have one direction. All the balcony are facing KL Centre, and can view KLCC indirectly. All the main doors with corridor are facing LRT tracks . Because they only have one direction, the density per floor is quite low, only 8 unit per floor.

2 car parks per unit. As usual they will absorb the legal fees for S&P. But buyer will have to pay the bank loan legal fee.

Developer is Extensive Gain Sdn Bhd. Melati Ehsan Group. They asked Kim Realty to sell. Melati stock is listed on Bursa Malaysia and Melati share price is RM0.74 very thinly traded and most of the times are untraded.

For more info on Bayu @ Pandan Jaya:
http://politemarket.blogspot.com/2011/12/bayu-pandan-jaya-condo.html


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Monday, December 26, 2011

52 Ways of Making Money in Stock Market - Part 27/52 - Offer Your ESOS

Offer your ESOS
Before reading this, you need to read my earlier post titled: Offer Premium to ESOS.
http://politemarket.blogspot.com/2011/12/52-ways-of-making-money-in-stock-market.html

If you are entitled for any ESOS, don’t just subscribe and sell it. Offer it to your friends or relatives at higher price.

Assuming you work in ABC Bhd. Your ESOS entitled you to buy up 20,000 shares at $3.00. The expiry date is 5 year.
The market price of ABC is $3.40.

You want to subscribe your ESOS and sell it, total cost is $60,000, market value is $68,000.

You will make $8,000.

But WAIT. Offer the ESOS to your friends or relative at $8,800 or more. Try to convince them using the reasons or benefits in my earlier post. Sell to them at $10k, or even $20k, or more, rather than just make $8,000.


RISKS, LIMITATIONS OR DIFFICULTIES:
You need to have ESOS and need convince your friends or relatives.
 

OPINION:
If you decide to subscribe and sell your ESOS, then only you consider this. If you think your company is good and can grow, better to subscribe and hold the shares (receive dividend) or wait till near expiry then only subscribe.

If you hold on to the ESOS yourself, the gain is unlimited when your company grow.

Don’t ask me whether this is legal or not, I don’t know. This is an informal arrangement between you and your friends/ cousin/ family members. Please check it yourself.

For more info on 52 Ways of Making Money in Stock Market, click here.


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Greater Knowledge comes with Greater Responsibility in Stock Market

Spiderman said Greater Power comes with Greater Responsibility. In stock market is the same. Greater knowledge of stock market, comes with greater responsibility. If you are working in a stockbroking firm, many of your friends will ask you what stock to buy, whether the ABC stock can buy or not, now is it the time to enter, etc.
Even if you are not working in a stockbroking, as long as you are knowledgeable, consistently making money, then many people will come and ask you what stock to buy. Especially during festive season like Christmas season now, you will be meeting friends and relatives, and they will ask you these questions.

Although you are not a financial consultant or adviser, and it is illegal to give advice, as know as you have the knowledge, people will still ask you. What are you gonna say to them? Are you going to tell them it is illegal to tell them?

That is why Greater Knowledge comes with Greater Responsibility in Stock Market


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Thursday, December 22, 2011

Lion Industries Corporation Berhad buy or sell

Lion Industries share price RM1.36.Two different stories by two brokers, EcmLibra said STRONG BUY (2Dec) and RHB said Underperform (5dec).

Lionind stock PE Ratio: for financial year ended June 2011, PE ratio is about 8x.

Growth: RHB forecast negative 14.3% (2012), positive 18.9% (2013) and positive 9.2% (2014).

The EcmLibra report does not provide any forecast figures, but saying the share price of Lion Industries have dropped 38% due to fear of a slowdown in Malaysia’s economic and other steel companies have already reported losses. But their view is that Malaysia will continue to register positive economic growth in 2012 and Lion Industries will benefit when many infrastructure projects kick off in 2012.

Lion Industries is having net cash. Dividend yield is quite low.

Comment by RHB:
LionCorp proposed capital reconstruction and settlement. Lion Industries will end up with a smaller stake in LionCorp, to 14.3%. During the process, Lion Industries may need to write-off 80% of the trade receivables and could be ended up with a net loss of RM45.6m.

Steel producers will continue to be under pressure, due to weak steel prices, high material cost, and hike in electricity and natural gas tariff. The financial uncertainties of LionCorp may spill over o Lion Industries by virtue of LionCorp’s 25% stake in Lion Industries. Lionind fair value is RM1.19.

Comment by EmcLibra:
Lion Industries has undergone a transformation for the past five years, from highly geared company to a clean balance sheet. Although cyclical nature of the steel industry, they still added value from Net Asset Value per share of RM2.88 to RM4.54. If value Lion Industries at 50% of RNAV per share of RM4.31, Lion Industries fair value will be RM2.16, that is 61% upside potential. If the Lionind share price can trade close to the RNAV per share, then the potential upside will be 217%. Overall comment is Strong Buy. For info, one of the item that EcmLibra used to derive the RNAV is 50% receivables write-off.

I’m not sure why there are two different views from analysts. Maybe something happened or got major news between 2Dec to 5Dec. More info, please refer to RHB and EcmLibra.

Uo to individuals.

Other articles:



Point of Sale in Bursa Malaysia Stock Market


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Tuesday, December 20, 2011

Genneva Malaysia impact on Gold Price

There are many factors that cause the increase in Gold price:1) Inflation
2) Instability of financial markets
3) Centre Banks try to keep more gold and less foreign currencies
4) more affluent consumers from China and India
5) Growing gold exchange-traded fund (ETF)
6) Growing number of Gold company like Genneva
7) etc etc

Normally rich people buy gold that cost about thousands and treat it as jewellery. But with gold companies such as Genneva Malaysia, they invest in gold by the millions.

With more and more company like Genneva Malaysia, more and more people will invest in gold, and in a big way. Because of this, the demand of gold will be more and will have an impact on the gold price.



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Monday, December 19, 2011

100% Gain

Previously after buying the stock, if goes up 10% or 20%, I will sell. It has not been effective or successful.

My timing of selling and buying are always wrong. Then I try to make as high % as possible but don’t know what stock to buy.

Therefore, I come out with a stock selection method using PEGGY Method, which is very simple and straight forward.

Now I try to make as high % as possible, eg 50%, 100% or more.


Evergreen RM0.555 January 2009
100% 9 months October 2009.
200% 14 months March 2010.

Genting Singapore S$0.69 October 2007
100% 22 months  August 2010
200% 23 months September 2010

Adventa RM1.86 November 2009
100% 2 months January 2010

QL RM1.60 December 2009
100% 14 months February 2011

Freight RM0.62 October 2009
100% 22 month August 2011

Bonia RM1.03 March 2010
100% 19 months December 2011


Off course I hold a basket of stocks. Examples some 100% gain, some 20%, some loss, etc, average out is still ok.

I know some people can spot a stock that make few times or few hundred percent. But can they repeat the performance year after year? 100% gain in one year, RM100,000 after 20 years will be RM104.8 billion.

I also know some people buy many many stocks and some of the stocks went up few hundred percent. But what is the average portfolio gain?

For me, I don’t have insider news, earn average salary, don’t know technical analysis, don’t know how to interpret economy or do detailed company analysis. What I do is straight forward, looking at PEGGY figures, that is PE ratio, Growth, Gearing and Yield (dividend) from analyst reports and do my own selection.

For infomation on my fund performance, click here.
http://politemarket.blogspot.com/search/label/My%20Fund%20Performance


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Sunday, December 18, 2011

Bayu @ Pandan Jaya condo

My friend ask us whether can invest in Bayu @ Pandan Jaya condo. The project is near Pandan Jaya LRT.

Traffic.
Some complain that traffic there is bad, especially when reach kampung pandan roundabout. But some said the location is good, can easily access to mrr2, kg pandan roundabout, desa pandan going to jan tun razak, access to pgrm via shamerlin, jusco maluri jalan cheras.

Some complain too near LRT, noisy. But some said convenient because near LRT. Very easy to rent out.

Leasehold.

Distance to KL city is near.

The layout and design look luxury. But some complain it is surrounded by low cost or medium cost apartments. Some said it is the only nice condo in pandan jaya.

I think is abiut 1050sf square feet, price starting rm450+. Many said expensive, but some said with the current property price trend, the price is normal.

The demand is quite good and selling fast.

Saturday, December 17, 2011

52 Ways of Making Money in Stock Market - Part 26/52 - Offer Premium to ESOS

Offer Premium to ESOSWhat is ESOS? ESOS is Employee Share Option Scheme.

Example as an employee, he or she is entitled to buy certain quantity of the company shares at a fixed price.

Assuming your cousin work in ABC Bhd. His ESOS entitled him to buy up to 20,000 shares at $3.00. The expiry date is 5 year.
The market price of ABC is $3.40.
He wants to subscribe his ESOS, total cost is $60,000, market value is $68,000.
He will make $8,000.

But you ask him to WAIT WAIT WAIT ! ! !.
You offer him $8,800 informally.
He say yes because he got extra $800 and he no need to come out with $60,000 to subscribe, and you pay him $8,800.

After 5 years what happen?
If the price drop 75% from $3.40 to $0.85. You do nothing and the ESOS lapsed and you lose $8,800.
If the price increase 75% from $3.40 to $5.95.
You pay him and ask him to exercise his ESOS (cost $60,000) and sell at $5.95 (sales $119,000), gain $59,000.
After minus out your initial cost of $8,800, net gain is $50,200.

Why good?
*Your investment is $8,800, and you make $50,200, that is 470%, although the ABC shares just up 75%.
*Your maximum loss is just $8,800. But your maximum gain is unlimited. The above example is just up 75%, 5 years many things can happen, if the price up 120%, then you will make more than 1,000%.
*Conclusion is, minimum loss, maximum gain.


RISKS, LIMITATIONS OR DIFFICULTIES:
You need to find cousins or friends or family members with ESOS.
They also need to be trusted? So that they will not run away or exercise the ESOS without your knowledge.
You also need to convince them to take up your offer.
Not sure whether this is legal or illegal?
What if your cousin meets with an accident and pass away? The ESOS is gone.


OPINION:
Worry about cousin pass away or what? Remember your maximum loss is $8,800?
If you have opportunity, calculate it, evaluate the company whether can grow or not, and can consider it.
Don’t ask me whether this is legal or not, I don’t know. This is an informal arrangement between you and your friends/ cousin/ family members. Please check it yourself whether legal or not.

For more info on 52 Ways of Making Money in Stock Market……..
http://politemarket.blogspot.com/search/label/52%20Ways%20of%20Making%20Money%20in%20Stock%20Market


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Friday, December 16, 2011

I Made 7 Consecutive Wrong Decisions in Stock Market

Recently I made 7 consecutive wrong decisions in stock market.

 

This is how it happened:

I normally follow a fixed set of rules in my investment (normally gain).
And I will allocate some money to play or do trading (normally loss).


1st
Bought Rights entitlement and subscribe for the rights issue.
Before the shares were credited, the price keeps dropping.
Sold at a loss.

2nd
I bought a stock in July 2011.
Then due to US debt ceiling issue, the price drop.


3rd
I was thinking better play safe. I then sold at a loss.
But the price then recovered.


4th
Market has stabilized. I then went in at higher price.
Then due to the cut in US debt rating, market then tumbled.


5th
Market is very uncertain. Bad news everywhere.
So I decided to sell at a loss and hopefully can buy back cheaper later.


6th
The market then recovered. Decided not to buy so that not be cheated again.
But then the stock went much higher.


7th
Sold a stock that has went up, but it then went higher.

On the above examples, on average, the losses or "made less" is about 15%. I think the above wrong decisions cost me 100%.

 

 

Anyway as I have mentioned many times in my blog, I am not good in trading. But for long term investment, I think I'm doing quite ok. That is why I only allocate a small sum of my money into trading. I hope I can improve.

Thursday, December 15, 2011

Bursa Malaysia High Dividend Stocks

Recently I saw the list from the net, Ecmlibra listing some selective Bursa Malaysia high dividend stocks.

Dividend Yield, Beta, Market Capitalisation (RM mil), Closing Price 21 November 2011, PE Ratio, Total Return YTD (%)

AL-'AQAR KPJ 7.2 0.46 679 1.17 14.4 13

TOWER REIT 8.3 0.46 345 1.24 11.3 9

AMFIRST REIT 7.8 0.51 489 1.15 10.9 6

AMANAHRAYA REIT 8.2 0.51 504 0.88 11.8 0

AXIS REAL ESTATE 6.7 0.54 940 2.57 10.7 17

CAPITAMALLS MALAYSIA 8.3 0.54 2,411 1.36 16.8 32

MAXIS BHD 6.0 0.54 39,825 5.31 17.4 6

QUILL CAPITA TR 7.3 0.56 425 1.09 12.4 6

STARHILL REIT 7.4 0.56 1,146 0.87 n.a. 6

UOA REIT 7.1 0.58 584 1.38 0.3 -2

WHITE HORSE BHD 7.1 0.58 408 1.70 6.6 -14

HEKTAR REIT 7.9 0.62 419 1.31 10.4 5

Al-Hadharah Boustead REIT 6.9 0.62 928 1.48 8.8 10

BERJAYA SPORTS TOTO 5.1 0.70 5,566 4.13 14.7 -4

TELEKOM MALAYSIA 5.5 0.70 15,061 4.18 13.2 35

GUINNESS ANCHOR 5.1 0.75 3,202 10.62 16.2 10

SUNWAY REIT 6.3 0.75 2,985 1.12 5.4 16

MAYBANK 7.3 0.95 61,247 8.20 13.6 0

LAFARGE MALAYAN 5.2 0.96 5,676 6.60 18.6 -11


I would like to comment on this. It may be a mistake if we just look for Bursa Malaysia Highest Dividend Yield stocks. The dividend may be one-off special dividend, business may not be able to sustain and may not afford to pay same amount of dividend, etc.

But Ecmlibra add value to their listing. They listed out selected high dividend yield stocks:

1) with relatively stable businesses, and

2) market capitalization of more than RM300m for liquidity.

3) ranked them in ascending order of beta, where the lower the beta, the less correlated the stock’s share price is to the FBMKLCI i.e. the more defensive the stock in the event of further weakness in the overall market.

Felda Global Ventures Holdings IPO

Read from the news, when will be the listing of Felda Global Ventures Holdings IPO (FGV) on the Bursa Malaysia stock exchange? It will probably be in March next year.

They said the listing is important to Felda settlers. The settlers will own shares in the listed Felda Global Ventures Holdings IPO via the settlers' co-operative, Felda Investment Co-operative (KPF), and will have a controlling stake.

Felda Investment Co-operative EGM to be held on Jan 5 to vote on the IPO issue. The listing of FGV is expected to raise some RM6 billion.

Government own 100% of Felda Global Ventures.

Felda Investment Co-operative owns 51% in Felda Holdings while Felda Global Ventures holds 49%. Under the proposed listing, settlers would swap their 51% stake in Felda Holdings via Felda Investment Co-operative for 61% control of Felda Global Ventures.

Felda Holdings has about 880,000 ha plantation landbank.



The Star, extract.

Monday, December 12, 2011

Buy penny stock to avoid odd lot? or no need?

Buy penny stock to avoid odd lot? or no need?

There are many advantages in buying penny stock. Example volatide and fast money, realative cheap, higher voloume, etc.

What i want to share is, another advantage of buying penny stock is it can minimise odd lot.

If you have limited money and you normally invest in small amount, then you should consider buying penny stock.

Example you have RM3000, you buy a stock 1000 shares @ RM3.00.
If they have bonus issue 1 for every 3, then you end up having lot odd 1333 shares. The 33 shares are very difficult to sell, may sell at lower price, and higher cost.

Examples of othe corporate exercise that may result you having odd lot:
Share dividend 1 for every 25
Free warrant 1 for every 6
etc


If you buy penny stock, you can buy more shares and can minimise the odd lot.
If you have 3000 shares, then bonus issue 1 for 3 you will end up having 4000 shares.


Few things that you need to consider:
Long term or short term or medium term. If short term, don't bother. If you buy and keep for very long term, then odd lot is not a problem. You are not selling and the losses from odd lot is spread out for many years and not much impact. Odd lot still pay you dividend.

Valuation. If you could not find any good penny stock, then buy other good non-penny stock. Don't force yourself buying penny stock.

Anyway, if you think the stock is very good, just buy it. Odd lot losses is just about few percent, very little. The company may not have bonus issue or other corporate action before you sell it. Furthermore, if the company have rights issue, odd lot can apply excess.

Saturday, December 10, 2011

You must expect to make 100% and not 10%

I was away from the stock market for past few months and now i don't know what stock to buy. I check with my friend on a stock. He told me should be able to make 20% in medium term. Then i told him this, i want 100%. He then got speechless.

Previously i was aiming 10% and my trading was not succesful. I bought a stock, made 10% or 20%, then sold it and buy another stock. The problem is after i sold, the stock continue to go up. The new stock that i buy, sometimes didn't go up or drop. I made very little and also made losses. When market down, most stocks also down. When market up, most stocks up. Why bother to switch? I also simply buy stocks recomended by others. All these are not effective.

Then i came out with PEGGY Method, and trying to find a good stock that i can make as many % as possible. Can be 20%, 40%, or 100%. The timing when to buy, i use Dollar Cost Averaging method. Will sell when the price is more than the value of the company or the company lack growth.

Anyway, I'm not saying that i can make a lot of money in short term or long term. I also made wrong decisions, but trying to minimise losses from wrong decisions and maximise profits from right decisions. With my current investment, i made much better profit as compared with last time. Last time hardly got profit.

I got two portfolio, and one of them i manage to keep track on my investment return. You can click on the label titled "My Fund Performance".

Later i will post how i made 7 consecutive of wrong decisions in just two or three months.

Friday, December 9, 2011

Can we transfer shares from another location?

If my shares are in Penang, can I transfer my shares if I'm in Kuala Lumpur? Although i have some knowledge in stock market, this simple question i also could not answer.

Therefore, i checked with a friend and she said yes, provided that the processing office is the same company as the place where my shares are residing. Meaning if my shares are in CIMB Penang, I can go to other CIMB branches to transfer my shares.

This is what my friend told me. I have not done that before, and if you want to know more, you have to check with your dealer or remisier.

Thursday, December 8, 2011

Fitters stock to list its renewable energy unit

Read in the news from Power Engineering. Fitters originally planned to list its renewable energy unit in end of 2009. But there was some delay. The company still plan to list its wholelly-owned unit Future NRG (FNRG) Sdn Bhd on London Alternative Investment Market (AIM).

The fund raising excercise will provide the necessary fund for its renewable energy projects.

Two interesting statements made by its managing director Richard Wong Swee Yee. First, he has set a profit growth target of 20% per year for Fitters. Second, he said Fitters is in a growing phase.

When we plan to buy a stock, growth is one of the important factors to look at. Question is, can Fitters achieve the growth rate? Up to individuals to judge.

More on Fitters shares, please click on the label "Fitters"

Fund Performance Updates

To update on my own fund performance as at 30 Nov 2011.

One year period:

KLCI Down 0.9%
My fund up 31.2% + 1.5% + 1% = 33.7%

Actually i am quite surprised that my fund can perform so well considering KLCI didnt go up. I don't think i can repeat that kind of performance in next few months or a year. My aim is still the same, that is in the long run to get a return much higher than FD and at the same time to outperform the KLCI.

We can make 100% or more on a stock in a very short period if we bought a right stock at the right time. But to get a high return on a portfolio consisting of cash and stocks may not be that easy. Keep more cash or more stocks, how many stocks, etc, all need to be carefully managed. However, outperform the KLCI is achievable.

On the history of my fund and why i need to add 1.5% + 1%, please visit my previous post on my fund performance.

http://politemarket.blogspot.com/search/label/Fund%20Performance%20PEGGY

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Wednesday, December 7, 2011

Royale Vietnam - nice restaurant

Recently i went to dine in Royale Vietnam Starhill Gallery, Feast Floor, Jalan Bukit Bintang. I dont know how to evaluate food, but the taste is nice and all my friends like it. The atmosphere and the design or layout is nice too.

Four of us.

Our food:
Mango salad rm18
Pamelo salad rm18
Starter combo rm35
Pineapple friend rice rm28
Meat Vermicelli dried noddle rm25
Lemongrass claypot chicken rm32
Vietnamese tea rm5 x 4 = rm20

Service charge 10% plus tax

Total rm204

Not sure that consider expensive or normal.

Monday, December 5, 2011

Fitters stock

Can you comment on Fitters stock?

For the past one year, i read few Fitters stock analysis from rhb. Four things here. First issue is the business is quite complicated. Fire prevention and construction, green project, palm oil milling, property, renewable energy, fibre and pellet. After reading so much, i dont really understand. But my summary is this, it is a new venture and with uncertainty. But if successful the growth will be very good.

Second issue is, because i dont really understand the story, i look at the figures. As a lazy investor, i normally look at figures. No matter how beautiful the story, if the figures are not good, I am not interested. Analyst has done a great job in summarising all the story into figures. But for the past one year, i noticed that the forecast given by rhb always have big changes.

Third issue is, rhb has written few Fitters shares research report, but they always put unrated. I always curious why they want to write so many but still unrated.

Fourth issue is, if u get a Fitters stock analysis report, make sure the figures include the warrants shares. Meaning, Fitters earning per share should be showing a warrant diluted earning per share. This is to be more prudent. Rhb report did not include warrants.

Let me present it using some basic figures, forecast by rhb in oct 2011, i add in the warrant for calculation.

At Fitters share price of RM0.90.

Fitters PE ratio 10.9x (dec 2011)
Growth 57% (2012), 14% (2013). PE ratio estimated 6.6x (dec2013)
Gearing 0.3
Fitters Dividend yield 1.6%

From the above we can see that with that kind of growth, Fitters shares PE ratio is not expensive. However, the growth is quite uncertain especially the forecast have been changing many times.

For info, there is one broker, i think is Mercury Securities (cannot remember who), is recommending a buy onFitters stock.

If you trust rhb forecast and you think that Fitters green venture will be successful, then based on the figures i think Fitters can keep. Even without the future green profit, Fitters still trading at 10x only, as long as no major losses if the project fail.

Question is, whether you trust the forecast and confident in the green venture.

Exemption of Real Property Gain Tax (RPGT)

Recently i have sold a property. Because i bought it less than 5 years ago and is subject to property gain tax. 5% of the gain.

Then my colleague told me i can actually get once in a life time exemption. Actually nobody advise me on this and i was not aware. I have to thank him.

Question is whether i want to get the exemption now, or for my future property. I decided to get it now, because my future property i may not make money or may sell it after five years or i may not sell any property before i die.

In case some of you don't know, just like me, we can actually apply for exemption for Real Property Gain Tax. You can consult your agent or lawyer.

More info on property here.

http://politemarket.blogspot.com/search/label/Property



Thanks

Saturday, December 3, 2011

Bstead Pharma

I have some small quantity of Boustead, don't know when i bought it. Now they are offering me Pharmaniaga shares at rm5+, market price is almost rm6. I'm not sure whether to subscribe for it. Pharma is currently suspended, don't know since when, and not sure what will bethe price when it reopen. Normally friends will ask my opinion, but this time because i was away from market, i'll will have to ask my friends for advice.

TSH bonus issue

TSH just ex for bonus 1for1. You will get bonus shares, and your purchase pricec will be half, if you want to compare your purchase price with market price. If you have bought at rm2.80 before bonus, then your price is adjusted to rm1.40. Now the price is about rm1.90.

Went up more than 30% recently, but i think it still deserve a Hold. For long term, may continue to accumulate using Dollar Cost Averaging.

Updates

Few months didn't blog. Recently didnt follow the market, but heard the news such as Narra error,Harvest designated, Malaysia Gas.

Currently have very limited access to internet. Hope to continue with stock market and blogging soon. Probably end of this year or next year.

Followers

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