Monday, January 30, 2012

Comment and opinion

Happy CNY and Huat ar....

Look like Hartalega finally goes up, I had been holding this counter for 3 years. The return is not bad at all. Like what i had said previously sometime is purely luck and sometime you need a marathon to obtain satisfactory results.

Allianz is another counter I plan to increase my position for this year. Currently i only hold a little of it only, my concern is the liquidity problem of this counter. Therefore I must be sure that I need to hold it for very long in order to get good return, and selling it may be a issue since lack of liquidity. Allianz is not appeal to investors currently is due to dividend issue as compared to other insurers like LPI, once Allianz start paying good dividend its share price will reflect that. GAB, DIGI and LPI are traded at very high PE because of their dividend payout. Investor will priced their using dividend yield model instead of PE valuation. Allianz posses that potential as the mother company may want to recoup their investment. This was happen to Digi previously, it never pay dividend, its share price hardly move. However since it start paying good dividend and exercise capital management to return excess capital its share price shoot up for years.

It is very interesting to watch how Maxis perform from now, will investor priced it using dividend model and will it fetch a comparable PE or dividend yield to Digi.

Some ask me about plantation counter, however i did not follow any plantation stock currently.

2 comments:

  1. I like Allianz a lot. If its the same stock I am thinking of, its the holding company for PIMCO and the legandary Bill Gross.

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