I don't see any benefit of this change to the rakyat. The only benefit is there is less work in tax administration. But I am of the view that any savings in the tax admin should not be at the expense of the rakyat paying higher tax (or not being able to claim back the tax credits).

Hi all,

Please bear with me as I am new to the world of stock exchange.

My basic question is what should one do with your stocks?

My remisier's answer is sell at higher price than I buy and make profit. To me that sounds like a gold prospector/speculator rather than as a true investor.

Now to explain my train of thoughts:

I am having a regular source of income (as in having a regular 9-5 job).

I have extra saving by not spending more than I earn.

I used to put my money in FD.

I realized that money in FD was very lazy... it is giving me lousy returns that will not beat inflation.

I have been buying dividend yielding counters hoping that they will give me better Rate of return than FD, I am targeting a conservative yield of 8 - 10%. I am not speculative, but I rather buy them small pieces at a time with the amount I am comfortable with (based on my budget)

I want to keep these dividend yielding counters as part of my retirement plan, hoping that they will give a source of income after I am unable to work anymore.

However, my remisier thinks that my plan is a joke. He cannot understand why I want to keep the stocks when I can make a profit during a bull run.

I cannot understand why I must do like he said.

I hope to hear from second, third or fourth opinions.

Thanks.

Xuzen

You buy, you sell, he earn commission mah; you buy once in a blue moon how can he make his living. Your rationale might be perfectly all right, but make sure you got those good one. Good luck.

You don't need to follow others' saying, it is your hard-earned money, you are the one decide what to do with it.

Yes, you can ride on some good stocks over the long term, even earn dividend alone is more than 2x of your FD.

But do remember this is on good fundamental stock only. It doesn't apply to all stocks.

Surely remisier doesn't wish to see you buy and keep it long term or forever, as they need you to buy and sell constantly to earn commission out from it. No offence and disrespect to remisier, just remisier shouldn't ask client to buy or sell in the first place, it is individual decision.

Actually, if you sell at rally and buy when it dips, you'll make more money too... but, you need to monitor lar.

Else, steady cruising with the dividend stocks will be good too. It's just something that you do for extra money and profit taking when it gets too high.

No worries..... Good fundamental stocks can keep u sleep sound at night
u ask back ur remisier: How much did u actually earn from the market then?

I intend to buy regularly, but of course not as regular as those speculators.


Yeah, will KIV during the bull run period. But I don't see it happening in the near future... maybe late 2009 or 2010. I think now is a good time for bargain hunting. 12 months of bargain hunting/sale period... better than our Malaysian Mega Sales eh, which only last one month?

I guess I see myself as the tortoise rather than the hare. Strutting along leisurely along the road called life. Picking up my "rezeki" along the way, using it prudently and whatever is left once I reached the finish line (aka death) I'll give to my next of kin or charity which ever need it more, since I cannot bring it along to my grave.

Sorry for my rambling... biz is slow these days.

P/S So far I have in my portfolio: Tanjong, Carlsbg, Guiness, Amway, Toto, a little bit of here and there.

Xuzen

This post has been edited by xuzen: Nov 21 2008, 03:44 PM

Those kind of stocks don't move much either most of the time.
Once bought can go to sleep and every 6 months waiting for dividend only.

Yup, don't need to KIV too tightly if not intended to speculate in the first place especially with your portfolio. 9-5 job is the one should be KIV on, not stock market.

You only KIV tightly for those speculationa and goreng stuff which you not intended to keep it in the first place for long term.

Your portfolio is kind of stable companies, so risk is generally low. If you can continue your investment for a long time, you are going to get richer. But again, get some cash for standby is always good, I don't think you want to part with some of your portfolio if you need some cash suddenly.

Understood... cash in FD/Savings targeted at 3 to 6 mths of take home pay equivalent.

If you experienced people have anymore stable high dividend yielding counter to suggest please feel free to put it here or PM me. Thanks.

Xuzen

I might not experienced also.
You already have all the sin stocks liao. Then mah as well get more sins when they are low, licensed ah long like PBB or MBB (less preferred) or cancer spreader like BAT or JT.
Infrastructure play also not bad, PLUS, YTL Power etc.

This post has been edited by htt: Nov 21 2008, 05:03 PM

So far I have a simple screening plan... I select stocks that have PE btw 10 - 15 and DY above 8%. From this short list, only then will I zoom in to study the individual stocks. Its past history, accounting ratios etc...

P/S Chemical Company Malaysia (CCM) looks good to me, and if CI hits 700 or below, I am going in to grab Bursa share especially if it falls to RM 4.50 below.

Xuzen

P/S: Slide baby slide... slide all the way wayyyyyyyy down baby!



This post has been edited by xuzen: Nov 21 2008, 06:25 PM

I think you actually done quite some homework as I see there are not short of other stocks which fulfill your criteria but your list are made of blue chips.
Bursa is cash cow company as well, but don't expect them to be very successful as compare to other bourse. Good luck to you.

If I send a buy order for queuing.
Then during trading time, market falls like hell. I quickly decide not to buy.
Can I cancel the queue order?

This post has been edited by simplesmile: Nov 21 2008, 11:31 PM

Yes, you can cancel your queue as long as there are no matches (i.e. the "deal/transaction" did not go through and your order is still in the queue....)

I think currently many company have low PE and high DY is b' coz of the bearish conditions, if the situation was during bull run, I think not many counters would be so delicious. PE would be in their 15 -20 I guess.

That is why I said, for the next 12 months it shall be Mega Sales at KLSE Bursa.

Xuzen

But do remember some PE trap as well.

Some stocks even drop more than 50%, doesn't mean it is cheap. It is same with PE, as PE is based on last year earning data, if the company earning will be severely affected by the down turn, then those low PE is meaningless and doesn't tell you the real picture.

Just like oil company, now a lot of their PE, or share price could be selling a single digit or 5-8 PE ratio only, but doesn't mean it is cheap. As previous earning come from USD140 oil price, if oil price continue to slide, their future earning will be at least cut into 30% or half, so the coming PE would be teen number at current stock price.

Thank you for the reminder Cherroy.

That is why I have another safety net, its historical DY must be better than FD. At least if its share prices slide lower, you can rest in comfort that you can gain some dividend.

I also know that these ratios serves mainly as a screening tool and it does not completely over rule personal judgment, experience with the company etc (you know the human touch)

Xuzen

Hi all, JTinter.. when's the ex-date for their dividend? I saw yahoo listing it at 0.30. I can't seem to find any announcement of it. Thank you.

may i know what's KIV?