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

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

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

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 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

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

Hey people,

I got a new question. This is regarding AGM. If I have like 100 shares in Nestle and another person has 10,000 units in Nestle.

When it comes to voting, is it like I have 100 votes and the other person has 10,000 votes?

How does the shareholder vote work?

Xuzen

So a minority shareholder usually has no major say and is there mainly for food and wine/orange juice only yes?.....

Xuzen

Hmmm... if I raise enough tough question at the next GAB AGM, maybe they will give me a ctn of Guiness Draft. He he he

Xuzen

Hello fellow investors,

Another newbie question:

Does one need to declare to the IRB our profit generated from Equities trading?

Xuzen

0.75% for buying; 0.75% for selling if done through a remisier/brokern (well the remisier has to feed his family as well).

Therefore to obtain capital gain, you have to make sure your counter move above 1.5%.

Personally, I have a simple formula... I will hold until my capital gain is more that the [Brokerage fee + DY + FD interest over time].

Xuzen

I have a newbie question:

In the Star newspaper under the Stock listing Div Yield.

I am intrigue to know whether it the DY is quoted as per annum or per rolling 4Q?

I mean if it is stated DIGI 10.1%, does it mean that the DY is for the period 1 Jan 2007 - 31 Dec 2007 or is it for rolling 4 quarters?

Thanks

Xuzen

This post has been edited by xuzen: Dec 10 2008, 12:54 PM

Cheques are sent to your correspondence address. Make sure you update your address regularly with your broker.

Xuzen

Par Value is the value of the share during the IPO stage.

For example DIGI Par Value is RM 0.10, i.e., the value of the share during the IPO stage.

Xuzen

Dear Cikgu(s),

I have a question wrt to dividend and their tax computation.

Lets say I receive a dividend from counter X for RM 100 less 25% tax = RM 75.00.

My personal tax bracket is less than 25%, can I claim back the differences? If yes, how?

Xuzen

This post has been edited by xuzen: Feb 4 2009, 01:45 PM

Just a quick check...

How many of you investor use the "Dog of the Dow" strategy?

I, think this strategy is simple enough to follow. May want to try this strategy.

What do you guru(s) think?

Xuzen

P/S:

Does any mutual/unit trust in M'sia that employ this strategy?

This post has been edited by xuzen: Mar 9 2009, 11:43 AM

Dear Cikgu-cikgu,

I wish to know what the following term mean:

i) Hold

ii) Trading Buy

iii) Neutral

iv) Overweight

v) Underweight

Thanks

Xuzen

ii) Trading Buy
Buy fast if you want, after bought, shoot on sight.

What does shoot on sight mean? Sorry... I do not understand.

Xuzen

What method do you use to measure your return from your investment?

ROI?

DCF?

anymore?

Xuzen

You go to a wet market, you want to buy 10 kg of bawang merah, but you want to buy it at RM 1.00/kg.

You move around and some seller sell it at RM 1.20/kg. No deal. No transaction.

You wait and shop for other items in the wet market.

Then a seller wants to sell at RM 1.00/kg. Matched. You pay, the seller receives payment and you receive the bawang merah. Transaction completed.

Willing buyer, willing seller.

Xuzen