Investment Idea - June 2011

 Middle East, Europe and Japan almost all down last month. China market was flag, US also went down for nearly thousand points close at around 12,000 last week and investors is waiting for outcome of QE2 ending in Jun 2011.

Back to our home, Malaysia “Boleh”, last few week when all countries were down, Bursa Index close at high end. One of the reason could be Malaysia being included into Advance Index Country start from Jun 2011. Anyway, we will not going to predict the market, as we know whether the market up or down, our “best in class” stock will continue to perform well.

For those who are new, below our stock price as of last week and return since last 6 months (I am different from other Dealer/ Remisier, as normally they recommended the stock, but never invest, just for your info, I invested all the below stocks)

REITs : up by 5% plus dividend of 7%

Maybank : RM9 (up by 12% plus dividend of 6%)

Public Bank : RM13 (up by 8%, plus dividend of 4%)

Maxis : RM5.50 (up 5% plus dividend of 5%)

GENM : RM3.60 (up 10% plus dividend of 2%)

Batu Kawan : RM17 (up 5% plus dividend of 3%)

F&N : RM19 (up 20% plus dividend 5%)

Pchem : RM7 (up 12%)

MHB : RM8.60 (up 40%)

TWS : RM10.50 (up 35%)

Tenaga : RM6.70 (up 9%, plus dividend 2%)

We see the investment as portfolio, instead of individual stock, overall, the portfolio given return of 14.5%, this is fix into our investment objective of “ Invest for consistent Stable Income ”, we are not here trying to speculate for biggest return with high risk. Among these stocks, 3 of them, TWS, Pchem and MHB are counters suitable for trading. 

Question from one of my client, what happen if market crash and I still hold all these stocks? My answer, if market down, it provide more opportunities, that's the beauty of the stock market provided you are invest in “best in class” stock, beside you still receive consistent dividend income. For example, if you bought a stock at RM5, then price down by 50% and now the stock price at RM2.50. Say you buy it again at RM2.50, few months later when the price up to RM5, your return is 100% for this 2 ^nd   portion. If take the 2 average, your return now is 50%.

That's why market down is actually opportunities for those who prepared, with condition, invest in ' best in class ” stock!