Friday, April 26, 2013

What type of business you should invest in?

I always treat investment like investing into a business. If it does not pass one of my test, "Is it dependent on the government's largesse?" I will stay away.

I was reading this article on Bloomberg, where in one section, it interviews the CEO of Supermax. For a businessman, usually they are not that brave to say what he said. But then again, for the type of business he is in, he probably could not care less. Or probably he had already made a calculated move. His business is not affected whoever wins. His market is global. The banks will still stick to him as there are enough choices for him to go to. For him to get license to operate, I think it does not make much impact due to Supermax' size.

Now this is what you should invest in. I remember many were asking on the potential impact of the general election to the market as it was drawing near. You see any, so far?

I think for some who held on to much cash, they probably missed the boat - and one of them is probably Icap!

Tuesday, April 23, 2013

Add on to Timecom

I have decided to add on to TimeCom by buying another 400 units.

Price bought was not too good i.e. RM4.10 but I guess this is to allow when provided with Digi shares as dividends, there are no odd lots. As per announcement, for every 2500 units of TimeCom shares held, the shareholder will be provided with 600 units of Digi shares.

Prior to this I was holding 2100 units of Timecom. The purchase of 400 units will increase the holdings to 2500 units.

The distribution will be quite soon as I can see it. I am looking forward to holding some of the Digi shares.

Monday, April 15, 2013

Airport's Dividend Reinvestment Plan - What to do?

I remember I was questioned twice on the Malaysia Airport's Dividend Reinvestment Plan. Well, here I am going to go to basics on what to do with it.

Today's Malaysia Airport closing price - RM5.72
Dividend declared per share - RM0.0763
Reinvestment Option price - RM5.14

In today's announcement, here is part of the form as announced.

Now, see the closing price of RM5.72 is way higher than the reinvestment option price at RM5.14.
I am going to take the option of reinvestment plan. Based on Felice's Fund, I am entitled to RM0.0763 x 2,126 = RM162.21 dividend.

However as I am taking the option of reinvesting the dividend, I shall take a total new Airport's shares of
31 shares @ RM5.14 = RM159.34.

Hence, I am taking 31 new shares and a paltry sum of cash totalling RM162.21 - RM159.34 = RM2.87.

Saturday, April 13, 2013

LION Air skids into sea in Bali

Lion Air, the operator and minority shareholder of Malindo Air had one of its plane overshot the runway in Bali and landed in the sea. All passengers safe. Read below:

Lion Air plane skids into sea in Bali; 22 hospitalized

Lion Air has been a tough competitor to Airasia in both Malaysia and Indonesia.

On another note, I went to have a look at KLIA 2 recently. Don't think it will be ready for scheduled launch on 28 June 2013. I can still see the entire runway covered with red earth. I think Malaysia Airport has to be more upfront to the public as well as shareholders.

Tuesday, April 9, 2013

It is not just the private sector who can be good at it

I was listening to BFM this morning about the hidden and unknown portion of Malaysian public debt.

One should know the financial crisis that collapses AIG, Lehman and Citi to a certain extent is not knowing the extent of the liabilities that the financial institutions have taken.

Is our government just as guilty in using off balance sheet financing to fund public projects?

Quite interesting this morning's conversation.

Wednesday, April 3, 2013

Election time but portfolio still the same...

As mentioned in several of my replies, I am not too concerned over the election and today the parliament has been dissolved. It is uncertainty period but in shares it has always been lots of uncertainties - just have to pick the right stocks.

I have updated my portfolio report, but just to say sorry that nothing has changed  over the last few months - just the price. I could not find much reasons to buy or sell. Over the last few weeks, I was looking for opportunities to buy a little bit of Time Dotcom to make up to 2,500 units as I am now owning 2,100 units. I however could not find the right price to buy them. It has now gone up further, hence gonna wait further.

Because of the position is full, I do not have much money left to buy. Of course, over the period I have mentioned of several good stocks which I may have bought - one of it Freight Management. Run out of money for the portfolio now though.

Over time, you may see me posting lesser and lesser as my point of view on stocks will always remain to be consistent while the universe of good Malaysian stocks is running out of my list to be mentioned. Again, if you found good ones, please do send me a note. I will try my best.