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Wednesday, March 28, 2007

Trade: Magnum & Tanjong

Yesterday, I made a major move by selling all my 13000 units of Magnum share at RM3.30 and the remaining 1000 units of Tanjong at RM15.90. The main reason that I did the sell-off was I am getting worried with the U.S. economy development and I believe the whole global market will be dragged down by it, regardless it will be a soft or hard landing. The fact that many Americans are spending way beyond than what they made and tougher credit facilities to fuel the consumer purchase which triggered by softening of housing market is undebatable. Besides, many local analysts although did upward revise their target KLCI index from 1300 to 1400 by year end, but to me it is not a big margin from what we are today and the risk of going down has out striped the potential of thin gain anticipated.

If I look at the earning of Magnum which is about 16 sen per share, at RM3.30, PE is ~20.5. Compare to BJTOTO with 36 sen per share earning, PE at RM4.40 is only ~12.2. This is way too high for Magnum. Even if we factor in a potential capital return of RM1.00, PE of Magnum at RM2.30 is still ~14.4. I have long never did such a PE calculation on Magnum and was surprised with the figure. Hence, I reckon it is now a good time for me to sell off the share, and keep a close eye on it. Hopefully I can pick it up later when it drops below RM2.80.

Below is my latest share portfolio after yesterday trading.


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2 Comments:

Blogger boy said...

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11:44 AM  
Blogger KennethofF said...

Hi,

I think all bloggers who are patriotic Malaysian should highlight the
discrminative policy of Mayban (and AmBank).

Maybe all right thinking Malaysian should be asked to seriously
consider whether they want to continue banking with such a Bank.
Should we not make out voices heard loud and clear. Should we not
seriously consider withdrawing all our monies from Mayban (and
AmBank), cut their credit cards into two and returned to them, turn
down all their offer of banking facilities and switch our banking
facilities to banks which do not practise discriminative policies?
Should we not deliver this strong message to Mayban (and AmBank) in
such a loud voice to be heard also by others who are practising or
intend to practise discriminative policies - so they will stop such
disgusting policies?

Think about it and let all of us who belong to the group of right
thinking Malaysian highlight and create an action group to fight
discriminative policies being practice by any parties.

Consider pls!!!!!

8:17 AM  

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