I do not think out of over 1 thousand listed companies in Bursa Malaysia, only PBBANK is good. You can always look for other counters with good fundamentals and paying high dividends which suit your budget. A few good low priced dividend counters are discussed frequently in http://forum.lowyat.net/topic/596903.

Jordy,

I bet to differ. IMHO, there are less than 5 companies in KLSE that is WORTH investing. You can speculate on the rest.

A) 50% of the KLSE is Government or GLC or GLIC owned. So, they are out of question. Aka, too much political risk.

B) How many industries are GUARANTEED to make money?? Only financial and gambling companies.

C) How many of those companies in those 2 industries treat minority share holder fairly by giving out good dividend and no strange inter companies loan, political loan??? As far as I can tell, only one left.

So, besides PBBank, there are may be only a few more that is worth investing. And, they are NOT necessary better than PBBank either.

My definition of investing is you can buy the counter and goes to sleep for 5 years. You do not have to care whether there is a recession or so on.

Dreamer

P.S.: It is against my interest to offer this advice. I want as many peope to panic and drive the price down so that I can buy more. I am not selling my stock for any price at this moment.

what is the minimum? I also want to invest.

Dreamer, your opinion is much appreciated. I do agree with you that GLCs are not even worth a look at, but as of now, deity01 is looking for a counter with good DY below RM10, so I am giving him a piece of advice that there ARE counters with reasonable DY below RM10. No doubt PBBANK is a great counter, but with limited cash, one can look for other alternatives too. I do not name any counter because it is up to deity01 to make his decision.
Just sharing my 2 cents though, not intended to offend anyone

Jordy,

If a person has less than $1K in cash, the person SHOULD NOT invest on anything. At the minimum, a person should have 3 to 6 months of expenses in savings before they can talk about investing.

And, if a person has less than 1K to invest, any individual stock is a bad answer anyhow. Unit trust make more sense.

Dreamer

well person like me who has less then 1k but i still go for good dividend share. as time when i collected sufficient money i buy again.
so if depend on the person risk portfolio.

ahpoh,

So, if we hit recession and have a bear market for 2 years, what are you going to live on? You WILL be forced to sell your share at a loss.

<<so if depend on the person risk portfolio.>>

You can ONLY afford to take risk if you have emergency fund.

Dreamer

omg...my little questions started a flame......:-/

well...i am new to investment for sure at the moment....

well...for unit trust...i hv about 6k in it...
for cash...i hv about 2 months of my current salary...
i hv another 2k cash loanned to somebody....
i hv IL insurance...
i just started my stock investment..so i hv invested 1k in it...

so....okok...u r right...i really hv less then 1k in my investment fund for now...:-)

i tend to slowly build up my saving n my investment at the same time...
when i get my saving equal to 3 months of my investment...then i will adjust my saving/investment ratio...i will put more on investment at tat time.....

as for my loan debts...i am able to handle it...dont worry..
i dont live a fancy life...aka going to pub or drink or smoke or gamble or womens...i dont use credit card...
my monthly expenses are almost a constant at the moment for each month..

i wont worry about the bear market or it hits recession...my salary..although is low...but is already enough to cover my expenses n yet allow me to hv extra money to make investment..

and i am aware of risk but i dont affraid of risk..

so my main problem now is how to do fundamental analysis correctly, ie interpret financial report correctly.... and how to determine the actual price of a stock..:-)

This post has been edited by deity01: Mar 16 2008, 02:46 AM

Dont invest in anything if you have no idea how the investment vehicle works. You mean you have less than 1k per month or total of 1k money for investment? sounds like you dont know anything. Dont buy a counter just because of dividend yield.

fantastic attitude to have for an investor. The only concern here is whether one thinks they know the risk when the ACTUAL risk is far greater than what they know



Good luck

for me i think is fine if hit recession, my main purpose is to buy and lock it.of course time to time will collect money from other source of income.

well sometime i don't really know some of the important part of share such as PE, still trying to find out.
i already diversify the invesment to share,unit trust and normal saving as well as monthly insurance invesment. (just a student).
so when each holiday will work and it will help me last for 6month.
i do buy counter that make me confort about and the background of the company i know.

people say the stock is good, but how good is it need to study by yourself not just listen only.

so in the end of the day still come back to,are you able to take small risk, medium risk or the high risk.

with this counter, evenwhen recession come and got fire from your job the dividend alone is enough for you to survive and continue zzzzzzz

Rule No.1# Never run away from burning house

Huh?!?

Please explain how do you NOT run away from a burning house?

Dividends depends how much the person buys. A dividend for example can be 10% per year. Even if you put RM100k that would mean only RM10k for 12 months. Less than RM1k a month.

Most dividends does NOT reach 10% and capital depreciation of your investment during the recesion periods will dwindle your RM100k to RM70K for example. So that's even less than RM1k a month from dividends.

Please don't get me wrong, I love, admire and hold dividend counters. But kind of hard to survive with just 'dividends' when got no job and recession looming. Although I do get the spirit of your statement, which is the best stocks to hold are still dividend stocks, if not due to stability of the stock, also it's ability to give cash returns even during recession.

But I still don't get your 'Rule No. 1' though. I'm not sure if it is a typo or was it something you really meant. If you can explain it just so I don't feel like I'm mising something.

DY for PBBANK is around 7%, so it means that by investing RM10,000 you are only getting around [RM700 - 26% tax]. Is this what you mean 'enough' to survive for the whole year through? Even if you have 10 lots of it, it would only give you [RM7,000 - 26% tax]. It still wouldn't be enough for me to live through a year

The way I see it :-

There are juniors want to do some savings by way of investing in Pbank shares. From the financial planning point of view, saving a certain sum of money each month always come first ( expenses next ). Maybe they have good intention to save, but do not know a proper way to do it. After all, most Malaysians believe in DIY method when come to personal financial planning.

Then most seniors object or trying to impose their DIY methods on the juniors. They may good intention too.

However, financial planning has to be tailored made to suit the needs of each individual per se.

No doubt, we can clarify, educate but the final decision comes from the individual himself. Moreover, younger investors do have more years before reaching retirements. so risk appetite is different and acceptable ( in the case of investing in Pbank shares ).

Do not intend to flame everyone. Hope to clear some confusions.

This post has been edited by SKY 1809: Mar 16 2008, 06:11 PM

Jordy,

1) I thought the Dividend yield is 7.5%.

2007 total Dividend is RM0.75 and assuming that you buy PBBank at RM10

2) The actual dividend yield is dependent on your buying price. I bought at RM7 so my dividend yield is more than 10%

Dreamer

After seeing so much interest in public bank shares on the main thread and this thread, I decided to check out a recent analyst report. If EPS grows to 70 cents this year, at Rm10, the stock is trading at a PER of 14.3. Net profit margin is a respectable 23%. Interesting to see how much longer investors would be willing to pay to invest at such a high PER when banks around the world are trading at less. To go in now in my opinion would be a pure dividend yield play (not so attractive after deducting tax), especially if valuation drops to around PER of 12.

You have the valid point, but we never said at current level Pbbank is cheap though. It is fairly value, not cheap.

Pbbank is a conervative bank, it has not have the risk exposure like others bank (like US and international counterpart which had large exposure to derivatives product, CDO, subprime etc).

It is just better (not best, some others may be better choice) than ABC or XYZ stock (especially those 'goreng' one) in the market, if one really really want to put money into the stock market.

This post has been edited by cherroy: Mar 18 2008, 02:20 PM

but what if one day the key man of PBB (touch wood) is no longer in this world? won't it seriously affect its share price & management?

This is something I personally find amusing that people are worried if Tan Sri Teh pass on, PBB will degenerate without leadership. Kind of like 'if Robert Kuok dies, will Maybulk be bankrupt?' question.

Unlike other business like construction and properties, the owner rarely has to make decisions everyday to ensure his business goes on smoothly. As a bank, standards and procedures are already decided and their business is based on these written instructions how to evaluate loans and potential customers. So in other words even if the good Tan Sri were to retire permanently, the bank business is unaffected by his absence.

Unlike business like properties and construction where management has to constantly look for business and partners and such, banks are more conservative and boring in nature. Other than the new Islamic banking products which they are trying to promote, what else can banks do? Venture into properties? I think not.

I think PBBank at the moment is not into any risky or completely different busines model other than conventional banking. So unless the Tan Sri is responsible for actually approving each housing loan and trying to personally sell you his mutual funds, his absence will not be felt in PBBank's everyday business. IMHO anyway.

This post has been edited by skiddtrader: Mar 18 2008, 10:23 PM