Tuesday, April 19, 2011

Add position to Public Bank & Hartalega

There is nothing happen to my portfolio for the past months. However received new source of fund recently, add position to Public Bank and Hartalega. Public Bank just announced a very Strong 1Qtr results yesterday, net profit up by 20%, look like it going to make EPS of 95sen for year 2011. At the current price, it deemed quite attractive, PE is less than 14 for a well managed company. Many may not like it but not me.

As for Hartalega, i am quite optimistic that it is going to announce another record net profit, EPS can be around 53sen easily. It is going to built its plant No. 6 to expand further. I like company that able to grow organically, Hartalega is one of that in Bursa Malaysia. As i mentioned previously that a company only can fetch a higher PE valuation if it able to grow (in term of net profit) and pay good dividend. I am still waiting for the market to appraise it as grow stock valuation.

For property, i booked one more condo, nothing conclusive yet. Able to know the outcome or selection by next month only.


  1. Hi 2ndbrother, do you reserve cash during current situation? It seems like current market position got a bit high, i'm quite worry and dun dare to add more position in share. May I know what is your opinion?

  2. retnuc, quite sometime did not hear from you, doing good recently? My cash position is quite low currently, however going to receive another fund soon. After that my cash level is consider high, still not figure out how to utilise that fund.

    My opinion is the currently level of Index is high on historical term however most of the blue chips still reasonably priced. Just look at Maybank, CIMB and Public Bank, they are not over price. However some second liner and penny stocks are not cheap either. We just passed the 2009 crisis, the next crisis most probably will not come soon. Correction is unavoidable, only the quantum of correction does matter.

    At current situation, you can either join the crowd to chase for what will be next to move up; or be selective. I chose to stick to my own strategy, so i have nothing to shout about. I add position to Public Bank, many regard it as "old man stock". Growing at rate of 10-20% per annum consistently is consider "old man stock", i have nothing to say. Back to the basic principle of why you what to invest? It is to compound your money consistently over a long period of times. So it fit your objective, some more it pay you good dividend.

    I also add Hartalega, as many still group it as latex glove maker which will suffer from recent latex price surge. At current share price, to be it is a good bet. Favourable prospect for nitrile glove, effecient production, expanding its plants and etc.

    I also of opinion that the economy of Malaysia will be better with implementation of ETP by the government. So i still will invest in stocks and property but will be selective.

  3. hi 2ndbrother, it always great to learn from you :) I try to keep my cash position high since mid of last year, and cause my return cannot catch up KLCI.. struggle on whether to add more position in my holding or not.

    Harta is the largest holding in my portfolio. I think it is under valued compare with other glove maker. Growth is still the major reason why invest in it. Hopefully it can increase its dividend payout for coming quarter report.

    Do you research on Axiata? May I know what is you opinion on it?

  4. retnuoc, i did not follow Axiata, so unable to give any comment. I still monitoring how a telco/ celco able to grow with decreasing voice call and increasing data usage.