This strategy is a mechanical method of selecting say 10 stocks of the top 100 largest cap with the lowest PE and highest DY. Thereafter put equal amt of money into the counter and let it run for a year.

Then after one year, review it and sell those that are no longer in the list and replace it with those that make into the list.

Just curious on how many of you investors uses this emotionless and mechanical method of investing in equities.

Xuzen

Since I am the TS, I shall conduct this experiment.

Mod (Cherroy) if I could ask you to pin up this thread.

I will select 10 counters on the last Friday of this month, that have the best PER and DY values from the Top 100 largest Cap list.

I will buy a theoretical value of RM 5,000 per counter.

Thereafter I will monitor its gain or lost every last Friday of the months for analysis and report accordingly.

I shall repeat this process 12 times (every month for one year) and we can see the theoretical gain/loss thereafter. What say you mod?

Xuzen

This post has been edited by xuzen: Sep 19 2009, 12:35 PM

I will use the DIY and PER as listed in the Star Newspaper. This will make life easier for me.

Xuzen

This is my list based on data obtained from The Star newspaper of 25-9-2009. The 10 counters are skimmed from the top 100 mkt cap. My selection is based on PE less than 15, DY more than 6%.

Counter P/E DY BOUGHT AT # UNITS Total RM
Data as of 25-9-2009 Bought on 29-9-2009
MAYBULK 6.7 13 RM3.02 1600 RM4,832.00
BSTEAD 4.2 7.9 RM3.46 1400 RM4,844.00
NCB 9.1 8.3 RM3.00 1600 RM4,800.00
BKAWAN 7.9 6.9 RM9.25 500 RM4,625.00
JTINTER 15 10.3 RM4.74 1000 RM4,740.00
MEDIA 15.1 10.2 RM1.61 3100 RM4,991.00
TM 13.6 8.4 RM3.09 1600 RM4,944.00
DIGI 14.4 8.8 RM21.34 300 RM6,402.00
AMWAY 12.7 7.3 RM7.35 700 RM5,145.00
BJTOTO 13.7 6.5 RM4.46 1100 RM4,906.00
Total: RM50,229.00

Xuzen

Err... how do I do that?

Xuzen

This post has been edited by xuzen: Sep 30 2009, 12:06 PM

How do you do this? I am curious to know. Do you need a special program to do this?

Xuzen

The below is the portfolio after one month:

Sector Counter P/E DY BOUGHT AT # UNITS Total BOUGHT AT # UNITS Total
Data as of 25-9-2009 Bought on 29-9-2009 As of 30-9-2009
Services MAYBULK 6.7 13 RM3.02 1600 RM4,832.00 RM3.12 1600 RM4,992.00
Plant BSTEAD 4.2 7.9 RM3.46 1400 RM4,844.00 RM3.42 1400 RM4,788.00
Services NCB 9.1 8.3 RM3.00 1600 RM4,800.00 RM3.06 1600 RM4,896.00
Plant BKAWAN 7.9 6.9 RM9.25 500 RM4,625.00 RM9.95 500 RM4,975.00
Consumer JTINTER 15 10.3 RM4.74 1000 RM4,740.00 RM4.65 1000 RM4,650.00
Services MEDIA 15.1 10.2 RM1.61 3100 RM4,991.00 RM1.70 3100 RM5,270.00
Services TM 13.6 8.4 RM3.09 1600 RM4,944.00 RM3.02 1600 RM4,832.00
Services DIGI 14.4 8.8 RM21.34 300 RM6,402.00 RM21.84 300 RM6,552.00
Services AMWAY 12.7 7.3 RM7.35 700 RM5,145.00 RM7.30 700 RM5,110.00
Services BJTOTO 13.7 6.5 RM4.46 1100 RM4,906.00 RM4.32 1100 RM4,752.00
RM50,229.00 RM50,817.00

Total change is +ve 1.17%. There is no div announced up to 30-10-2009.

Xuzen

P/S: Smartly, I need your help with the alignment. It look OK in my excel spreadsheet but jumble up when I copied & pasted into my LowYat


This post has been edited by xuzen: Nov 3 2009, 03:45 PM