Monday, August 15, 2011

First Foray

Today was my first foray into the market after I've obtained my CDS account and linked it with my Savings Account.

My first purchase was Public Bank, a very safe dividend yielding stock. Last year's dividend payout was RM600 per share. So at today's price, it's about 4.6% yield.

I looked at Hap Seng Plant to get some so as to profit when their new Q results were announced. But then I saw the humongous selling queue and I backed off.

Century Logistics again has liquidity so dried up that it shot up to RM1.66 with minimal volume. Q1 2011 result wasn't that great, with just RM6.2 million (20% of FYE2010) and EPS of 8.18 cents. Revenue was flat as with last year. Why do they need over RM30million in cash? And what's the use of having almost 5% as treasury shares? The directors controls almost half of this company and the PE ratio of just over 4 is the reason why this counter is still tempting despite the extreme low liquidity and low dividend payout policy.

The best way is to buy into a company that grows for years and this seems to fit into that criteria.

As far as my financial tracking began from Year 2004 - 2011, my total transacted investment income is RM 42455.

I last updated via twitter that those who bought Gold at USD$1780 and above were roasted. This 2 days it's hovering around 1740 and has tested the lows of $1730 twice. Now the buyers at $1750 are gone as well. I still hold to the view that Gold will weaken to below $1680.

Recently the idea of EuroBonds are gaining strength with Germany reluctantly to agree to it, but now do not oppose to such idea. George Soros said that the weak ones should leave Euro, namely Greece who was bailed out with 200 billion Euros and Portugal. Maybe this EuroBond is going to save Spain and Italy.

Swiss Franc has weaken and so shall Yen, USD, Euros, and these liquidity must go somewhere. Emerging market equities or Gold ? Will the rating agencies downgrade another big country for another hammering time? Mind boggling times are here.