Monday, March 31, 2014

Portfolio update

The following are the summary of all stock I invest now.

1)MKH- Mini IOI bhd. Directors are aggressive in acquire land for development, low cost of land purchase, huge land reserve. Besides, the accelerate growth for plantation in Kalimantan(15k ha), young oil palm with average tree year 5, high average FFB about 23 and high possible to acquire the plantation land to 100k ha. Beautiful balance sheet with continuous earn profit for ten year past. Acceptable DY( the time I buy in) and Profit margin> 10%. Currently, MKH share price stood at 4.80 and challenging the Target point set by Hwang DBS 5.20. This is the only outperform stock in my portfolio now and the price is above fair value. Therefore, Day Dreamer not recommend others to enter MKH at this timing.

2)Guh- Steady company, cash rich, buy back shares regularly, generous dividend paid 5%++ is the biggest play in Guh. Diversified business provide little risk. This is best pick for steady and long term investor.

3)MBSB- A finance company with very good record in all kind of financial ratio. Pe is about 9 which extremely low compare to other like Maybank, ambank, RHB bank and etc Recently, MBSB is expanding their capital by right issue and dividend reinvest plan. This showing the determination of MBSB    to get bank license and become another blue chip!  Not to mention, EPF is the biggest holder(65%) in MBSB. Most of our parents retired fund are coming from this company dividend.  In short, MBSB is still undervalued at current price but patient is needed.

4)NTPM- The first stock I invest. NTPM inspired me with its good perform although the PE ratio is high at the time I purchase(14++).The one who change my perception which merely focus on financial ratio such PE, NTA, DY. I start to think about company future growth rate instead of those past figure.

5) Facbind- A company which is just recovered from loss. Personally speculate that 10 sen tax excluded dividend will be paid at the financial year end of this October. Base on the current price, at least 10 % gain will be earn with limited down turn risk at the same time. However, strict follow up and top up/cut loss are required once the next two quarter report are out.

Last but not least, I have add another long term investment in my portfolio last week. It is PRLEXUS 8966.
the EPS is increase continuously and believed that will benefit from the coming FIFA World Cup. This is because prlexus help the nike to produce the product. Day dreamer already dump all the rest of capital into this company.

***Try to do homework on you own, you are responsible on your decision made.






Friday, March 7, 2014

Top 3 rules for investing

    
  Before invest in any stock, you must set some rules to yourself and strictly follow it. The benefit
is that you can avoid dilemma of being hesitate in making decision. There are three rules that day dreamer strictly follow to...



  1. Think for the loss first before gain.
           People normally buy stock base on the TP ( target price) or research by either famous research house or other investor. They attracted by the fantasy upside potential gain which is too good be to true. They believe that the expertise of the research house or investor will bring them for prosperity. However, they forget that other people are not responsible to help them earn money. The TP set/ research by the experts may subject to many outside changes, difference period to achieve and present of the big player. Most of the time, the timing is not good since some people are knew earlier and the stock price not longer cheap. If you follow the buy at that time, most properly you will stuck between paper gain and loss of 10% for months. Patience will be the good friend for you at that time. As long as the company is good, the share price sure will up....

                Day dreamer will set stop loss for some short term trade counter. On the other hands, day dreamer will ignore the paper loss occur in long or mid term investment as long as the reason I buy those investment are still exist. Loss 15% or 30% is doesn't matter. Day dreamer will treat it as Mega sales and buy more if there are capital. As cold eyes quotes"if the share price drop and you are not dare to buy more, most properly that is not the best investment for you "


     2. Invest the company which you understand
              Hard work  is needed for rule no 2. What you need to do is study the company base on what analysis tool you rely on. The analysis tool can be anything range from fundamental analysis, technical analysis, TA software, internal news, management reputation,nature of industry , prey from god.(求真字??) 

       Normally, Day dreamer will analysis the company by Fundamental analysis and management reputation. Identify whether the company is good and what is the intrinsic value for it. Then, find out the good buying timing by Technical analysis and analysis about equity changes happen in that company for recent time. In between, Day Dreamer will decide and set up a particular strategy for the company. Whether short trade or long term hold, or ignore. In short, the better you understand about a company, the higher chance for you to earn uncommon profit.

     3. Set up strategy for every stock you invest
               Cite from my own quote  "As long as there are a techniques, you still can find a good deal in spite of the company is a bad apple". Every company will encounter business cyclical. Last year profit good,this year better,next year normal. With deep understanding about nature of the company business.We can take the opportunity to earn big profit by buying when the industry/business is in the recession and sell when the industry/ business is in the peak. Day dreamer define it as mid term strategy. For another examples, you need to set up cut loss point and cut gain point if using short term trade for particular stock. When the stock price reach the stop loss point you must cut it without hesitation as follow to the strategy instead of hold it for break even. You should not simply change the strategic apply for the stock.     
                















Kick start of the blogger life

 Just before you read anything in my blog, I think this is important for you to know that..

 Who the hell that Day dreamer is? Warren Buffet in Malaysian?A super investor? Liar? Cheater? Senior investor? Trader? Basically, I just a newbie in investing stock. 

  Why not invest in property, forex, future,gold or business? This is because I has limited capital and so I am  not affordable for those investment. However, as time goes by, I will try them when I  become more knowledgeable and the timing is right. Nowadays, day dreamer is merely focus on stock investment.

  I have been indulge in investment started from secondary school. The kick start was tough indeed. That was  insane at those school days when a science stream student without any accounting basis try to read those book that relate to investment which consists of many jargon. However, I still went through this difficulty with the burning desire to become financial freedom someday.Finally, I have been read billion pages of books and articles regarding investing stock before graduated from secondary school and found to fall in love with figures and accounting. Next, I chose to pursue my study for accounting degree for deeper formal financial knowledge and started my real journey in investing stock since 2013.

 So, I thought it was about time I put down my thoughts in writing. Start to trace down my journey in investing stock, sharing my knowledge and some idea how to operate some stock in certain timing. Please feel free to comment if any mistake I have made during analysis for some company in the future.

  If you are like me, every sens is a hard earn money.If your appetite for risk is medium,let join my journey to build a portfolio which achieve compound return 25% at least per annum.  

  Most of the time, i will be writing about Stocks investing by way of Value Investing, discover every single hidden gems. Nevertheless, I will utilize approximately 20% of my total portfolio in short term trading to find excitement in stock market and earn some fast dollar. (Always remember that short term trade is far risky that value investing, please do research properly before that and buy at own risk.)

Last but not least, Here is my quotes to share"As long as the company is 
good,the share price sure will up but only the time do matter;As long as there are a techniques, you still can find a good deal in spite of the company is a bad apple"

   








Thursday, March 6, 2014

My portfolio 2014





company portion% strategy
MKH 29 LT
MBSB 19 MT
GUH 21 MT
FACBIND 9 MT
NTPM 4 MT/LT
CASH 18






This was my long term investment portfolio which built from last year October til 2014 of March. The total capital is less than RM 20k. The strategy that applied is  midterm and long term since day dreamer is lack of time to watch market everyday recently. This portfolio will not subject to changes until October of 2014 unless significant  changes in fundamental occur in those company that picked. Stock which day dreamer trade by using short term method will not include here and will share separately in other post. This is the stock that day dreamer will lock in safety box until the date as promise. The analysis of those company will be post soon. Please stay tune!!!

Finally, hopefully that nest egg of day dreamer can be double within two or three year. Wakaka...