The term of "blue chip" is not a "classification".
We do have A stock is blue chip or not, or B is blue chip.

Blue chip is just a name normally associated to large cap, and quality stocks.
There is no guideline or "yes or no" in this using term, just a normal/tradition market jargon.

now i fully understanding what is Blue Chip...

in other meaning is so called quality stock.. which got long term potential which can do better in their own field..



This post has been edited by kueyteowlou: Sep 4 2011, 03:05 PM

blue chip origin from wikipedia "As befits the high-risk nature of stock picking, "blue chip" derives from poker. The simplest sets of poker betting discs include white, red, and blue chips, with tradition dictating that the blues are highest in value" (Source)

Also got red chip stock and green chip stock
Can wikipedia for more details.

Where can i get information on the amount of cap for certain stock?

My defination for blue chips:-
1) stable profit
2) Biz are not risky
4) stable dividend
5) With cash reserve and small borrowing (if any)
6) Biz able to recover very fast after economy downturn.
7) Trustable management.

can we say the 30 klci stocks are blue chip ?

Are these blue chip stock?

NESTLE
BAT
DIGI
PANAMY
KLK
DLADY
PETDAG
PPB
F&N
BKAWAN
PETGAS
PBBANK
HLBANK
HLFG
SHELL
GAB
GENTING
AMWAY
SIME
MAYBANK
RHBCAP
AEON
UMW
CIMB
BURSA

my definition = counters that are quite resilient during recession. telco, power, consumer product are my favourites.

easiest way is to just take the top 30 that made up the FBMKLCI

Bursa 1818 is blue cheat!

Fully agree

If I choose, then
Top blue chip-leader, establish and good cash flow and dividend payout
Nestle,Bat,PBB, Maybank,Anway,UMW

Most blue chip counters are expensive, so it is only worth to buy during downturn periods.

the bold highlighted above.... big but lousy in my opinion

PPB is not lousy, but a steady company.

Just because its share price doesn't move much daily, doesn't mean it is lousy.
It has been consistently give good dividend years after years and decade after decade.

How can a stock that previously about 10 years ago was RM4-5, now Rm17, and on top good dividend annually, can be a lousy stock?

Yes!! very expensive... but i dont see downturn now...

hi cheeroy,
my concern is not the daily share price movement.
let's see the next 5 to 10 years where the share price is going. Too early too judge I would say. Anyway just my opinion...

In my opinion, blue chips companies are difference from growth companies.
1) Blue chip company
a) Growth is limited
b) Capital appreciation is not much unless u buy during downturn periods
c) Profit is steady and stable which mean that they are not affected very much by recession.
d) You main source of income is from dividend. They will distribute stable dividend around 3% -8% pa.
e) Capital depreciation in share price is not much during recession unless under special circumtances. e.g. an exceptional loss in disposal/investment in subsidaries/biz.
f) Established companies in the market

2) Growth companies
a) Room for expansion.
b) Have capital appreciation of share price due to growth prospect.
c) Profit is not steady, some years can perform very well, but may hit during recession periods.
d). Your main source of income come from both capital appreciation of share price as well as dividend.
e). Higher risk in investment but compensate with higher rewards

3-8 % only? I doubt. It much better than that

John Maynard Keynes said "In the long-term, we are all dead"

3 to 8 percent,I prefer buy bond fund.

Yes, eventually you will be dead, not in stocks, but in life
Unless we find the fountain of youth.. calling for Captain Jack Sparrow!