Comments on: Top 10 Money Mistakes

By: larry

larry — Sat, 26 Dec 2009 03:33:43 +0000

Hi Cheah, I don’t really follow Hap Seng so not sure about it. Anyway share split & bonus issues do not add value to shareholders but sometimes the share price runs up because of the silly factor. Usually share splits & bonus happens when share price has gone up so much that it is unaffordable for many people to buy even one lot.

Hektar is one of the highest yielding REIT currently but if you only have 1 counter in your portfolio, it’s a good idea to diversify a bit, even into slighly lower yielding ones. For a small to medium size portfolio, a portfolio of 5-10 well researched counters would be a good size. Hektar’s gearing is on the higher end and it helps increase their yield because debt funding cost is lower than the property yield. High gearing creates risk for the investor.

By: Cheah

Cheah — Fri, 25 Dec 2009 08:49:11 +0000

Hi,
Can you explain why Hupseng is splitting its share into 2 and halving the price? I do not hear of any rights or dividend issues. What is the rationale behing this action ?
Regarding REITS. Should I start to build up my stocks on Hektar? I was delighted with the recent dividend that was paid out.

Cheah

By: larry

larry — Wed, 02 Dec 2009 15:05:36 +0000

A REIT is a Real Estate Investment Trust, usually a passive vehicle whose activity is to hold properties for rental income. Most REITs on Bursa Malaysia are currently yielding 8% plus on average. We have compiled a list of them here: http://www.horizon.my/investor/reits.php Sorry but I'm not a good trader at all, so can't really give you any trading tips. I'm a long term investor, mainly value driven. PE ratio is one thing to consider but more importantly to me is financial strength and cash flow. I don't focus too much on volume but I usually go for companies that have strong net cash position or low gearing (less than 30% of Shareholder Funds preferably). Also important is a track record of consistent earnings, increasing net cash position and importantly, good consistent dividends. Dividends are pretty important to me, a company may be sound financially with a solid track record, but could be stingy on paying dividends. A classic example is Oriental Holdings Bhd, it's got so much surplus cash but does not reward shareholders with dividends, one day it may blow all its cash on some dumb acquisition... what Peter Lynch calls "diwoesification".

By: dominic

dominic — Wed, 02 Dec 2009 03:56:58 +0000

what do u mean by reit? is that property? sorry i am new to this word.

in stocks, what type of investor are u, do u buy low p/e with good profit counters? as i take dividend as a bonus, i prefer to enter when the volumn is low. what say u?

and what do u recommend to the general public in picking a counter?
buy to hold and invest, and once in awhile when there is a dip, pick up and trade T-4?
thanks.

By: larry

larry — Tue, 01 Dec 2009 16:39:36 +0000

Hi Dominic, my main holdings are AMMB, CIMB and Petronas Dagangan. Other ones are APM Automotive and NCB Holdings (which are 2 very cashed up companies that pay decent dividends) plus some tiny stakes in a few other small-mid caps such as Kris Assets, Manulife, Jobstreet and Zhulian. I also have tiny stakes in some REITs for the yield. Currently I’m looking to increase my exposure in APM, BSD REIT and Zhulian but at prices slightly below the current levels.

By: dominic

dominic — Mon, 30 Nov 2009 17:44:16 +0000

well said…

life is all about BALANCE.

what stocks in particular are u targetting, or already holding?
i am very new in klse, trading account opened 2 months back.
learning from u here wld be very much appreciated.