QUOTE(cherroy @ Aug 6 2009, 04:22 PM)
I don't why want to look for price below Rm5 or Rm3.
Share price cheap or not cheap, is not really cheap or not cheap, get what I mean.
For eg. Tanjong is 15.00, so people say too expensive to buy (not necessary expensive), as 1000 share cost 15K, fair enough, but nowadays you can buy 100 shares, which means you can buy Tanjong as little as Rm1.5K!
If a share price is Rm5.00, you buy 10 lots (1,000 shares) cost 5K, then you can buy Tanjong for 300 shares, which is 4.5K. If the div yield is the same, you get the same amount of dividend cheque.
Why must look at share price alone to say it is too high/expensive to buy, it doesn't make sense to me.
Look at yield, EPS, PER, company business to sustain the div yield which is the factor to determine cheap or expensive, not share price.
If you have 10K, then you want to invested the 10K, it doesn't necessary you look for share price below Rm10 or Rm5 one. Higher price buy less unit, low price buy more unit, in the end of the day, it is the amount of money (10K) is the most important.
I very agree with this point Share price cheap or not cheap, is not really cheap or not cheap, get what I mean.
For eg. Tanjong is 15.00, so people say too expensive to buy (not necessary expensive), as 1000 share cost 15K, fair enough, but nowadays you can buy 100 shares, which means you can buy Tanjong as little as Rm1.5K!
If a share price is Rm5.00, you buy 10 lots (1,000 shares) cost 5K, then you can buy Tanjong for 300 shares, which is 4.5K. If the div yield is the same, you get the same amount of dividend cheque.
Why must look at share price alone to say it is too high/expensive to buy, it doesn't make sense to me.
Look at yield, EPS, PER, company business to sustain the div yield which is the factor to determine cheap or expensive, not share price.
If you have 10K, then you want to invested the 10K, it doesn't necessary you look for share price below Rm10 or Rm5 one. Higher price buy less unit, low price buy more unit, in the end of the day, it is the amount of money (10K) is the most important.
That is because I practice it...Hehehe
Tanjong buy small lots, PBBank buy medium lots, Uchitech buy a lot of lots...
Aug 6 2009, 05:00 PM

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