Bros ,

Would like to share my 2 cents ,
Buying Blue chips with high dividend yield should be 1 of the best op.

Those Klci stocks has been bashed down 50 - 60% .
Same goes to the few Blue chips ....

For those blue chips to grow back from RM4 to RM6 ... it is not a hard thing ,,,,

e.g. Genting at RM3.6 , once the Genting International opens at 2010 , the price wont be this anymore ....

RM4 , RM5 , perhaps more .... those forecast has to be recalculate .
For the current mean time if market goes against us further ,,,, blue chip is always blue chip .. they will yiled to us dividend ... when market bounce back ,, we get 2 ways of income ... CAPITAL GAIN and DIVIDEND YIELD ....

Rather than we place our bets in tho middle / small cap companies ... high rish hig hreturn .. but anytime it can go bust ... out from Bursa ... Look at liqua , kosmo ,ekran , just to name a few ....

If u r betting the next blue chip , then Gpacket or airasia might be in our radar ... with the current situation they cant yields to you dividend as they are expanding .... it is very depending on our risk tolerance ... =)

High risk , high return mah ... but must buy fundamental companies lol with great CEO ...

i will go for YTLP at 1.7 and his ytlp-wb at 0.58 (leveraging)= Cash is king , Francis Yeoh is keeping his cash back this 2 years and only go for shopping spree end of last year ...

Cheers

Genting problem is due to genting stanley in UK posting loses especialy for their online gaming.
As Uk already fall into recession, it is very logic genting dive south.

Ppl in UK could not even find a proper job and maintain their current lifestyle, how they can find additional money for gambling ?

the second issue is with the Genting Sentosa , which the construction material overly priced and they over run the cost .

With no income generated from Sentosa , only money pumping out to spore, Genting bleed heavily .
We can see clearly when they start issuing papers and Genting international doing the corporate exercise for shareholders.


For short and medium term investor, they could not hold shares for long ....
Foreign fund managers need to post year end result and chop those not so sexy stocks to furnish their year end balance sheet.

Furthermore ... redemption by those investors in home grown foreign fund add another problem to genting....

base on the current situation , genting CANT yields to you handsomely for dividend (short and medium term)....
There is no impresive earnings from Holding level .


Genting internationl or GI will run the resort by 2010 , factoring the total of jobs created in spore during market slump, and revenue generated ... it shall yields to you handsomely ...

P/E wont be below 10 ....
Spore already 2nd quarter in recession , in history normally they will go under for 4 quarters ...
by 3rd or 4th quarter 2009 , spore shall be out from recession ...

u wont catch GI bout 0.40+ .... or genting anything below RM4

use the latest EPS then multiple by 4 to get 4 quarters estimation .....

If u buy now at 3.64 , 1 year later by Feb 2010 , for genting to rise to RM4 sap sap sui...

RM4-RM3.64 = 0.36cents = 10% yield for 1 year investment = which bond paper can yields 10% per annum ...
I might be wrong and genting can go lower than 3.6, but the downside risk is low ...

just to share ...

yup .... stick to blue chip with high dividend yield ...
wont go wrong

second liners and mesdaq counters means to be goreng during super bull...
when bear comes .... all counters regardsless of blue chip or cikai company also must bow to the bear bear ....

its the cycle ... there is nothing wrong with the company , it the fundamental of the global economy ... weakening ...

Past P/E and EPS can throw to the rubbish bin already . not significant ....
Not logic using 2008 eps to calculate for 2009 forecast during bear market.

Should anticipate their future earnings to calculate P/e ...

Just use company cash flow , gearing , and the CEO direction enough d ...

Cash is king ---

Bro, i agree with your statement RM will be weaking ... after the 75 basic point chop by BNM , we haven seen the domino effect yet ...

Another round of meeting by federal reserve will be on 24/2 anticipating another 25 basis point cut ...

There is room for RM to drop ....

All comapny annual reports and their 4th quarter results will be posted by end feb and mac...
FA investors are waiting the stocks for another dive to south ....

Blue chips with stong cash flow will get bonus mark ...

Can fully utilize for M&A and for corporate exercises ...
With the oil hovering at usd40 , CPO price could not do well and always being traded at a huge discount from bean ....
perhaps pray for more katrina hurricane will do to save the cpo price...

waiting for early mac to collect bit bit .... cant buy at the lowest ,,,


Bro u r using TA ?