Current Return and performance
For Oct 2018,
The estimated holding period return for KLCI in the Oct-2018 is -4.41% (with dividend included). Holding Period return for my portfolio, is -6.79%. Total holding period return for my portfolio since the inception is 12.27%, annualized to be 1.89%, this underperform KLCI total return of 27.86% (annualized, 4.07%)
For Nov 2018,
The estimated holding period return for KLCI in the Nov-2018 is -1.44%(with dividend included). Holding Period return for my portfolio, is 2.52%. Total holding period return for my portfolio since the inception is 15.1%, annualized to be 2.27%, this underperform KLCI total return of 26.03% (annualized, 3.77%)
For Dec 2018,
The estimated holding period return for KLCI in the dec-2018 is 0.93% (with dividend included). Holding Period return for my portfolio, is -3.93%. Total holding period return for my portfolio since the inception is 10.57%, annualized to be 1.60%, this underperform KLCI total return of 27.20% (annualized, 3.87%)
For Jan 2019,
The estimated holding period return for KLCI in Jan-2019 is -0.13% (with dividend included). Holding Period return for my portfolio, is 8.51%. Total holding period return for my portfolio since the inception is 19.99%, annualized to be 2.88%, this underperform KLCI total return of 27.03% (annualized, 3.8%)
Trading Activities
1. Addition of RHB Bank (1066)
2. Addition of HLFG (1082)
Both RHB bank and HLFG were trading at P/E Ratio around 10-12 at the time when i bought in. With stable earning, consistent dividend rate characteristics i believe both are worth to add when their price is low
3. Addition of BJToto(1562)
4. Disposal of BAT(4162)
My investment strategy with regards to the "sin" stock such as Tobacco(BAT), Number forecasting (BJ Toto) and beverage company are as such,
Goods about them: stable earning with high dividend yields
Bads about them: as they are "sin" stock they are often targeted by government to curbing the consumption - most often done by raising tax rate on their products which in turn allow alternative products (illegal tobacco/black market operator, e-cigarrette etc) to takeover the market.
These fundamentals result in the stocks had limited upside potential but nevertheless good to hold compare to placing your money with FD.
For example, At the time i bought in, BJToto has estimated EPS of 20 sen and Dividend per share of 16 sen. This make the bought in price (ard RM2.05) attractive. You are buying into a stock with low PE (< 12) and high dividend yield (> 7%), on the other hand for BAT, with trading price around RM 37 (P/E around 20), this mean the stock had limited upside potential.
5. Addition of YOCB(5159)
The P/E ratio was good (less than 7), the dividend yield was attractive (5 sen in total for last year).
6. Addition of PADINI(7052)
Padini's price dropped significantly over the past few months due to dropped in profit caused by SST, Minimum wages and other increase in cost. However if i assuming the same profit amount decline for upcoming quarters, due to seasonal effect on retail apparel sales the total profit for the year can still come in around 15-20sen.
Furthermore i believe in the management of PADINI which has proven past record in making a turnaround.
7. Subscript to Right of Symphony Life (1538)
8. Subscript to Right and addition of MNRB (6459)
The price for both stocks nose dived for the past few months because of rights issuance exercise. This amused me as malaysia investor often react negatively (in a irrational way) when companies ask for additional capital investment from shareholder for business expansion or for working capital. As the fundamental for both companies havent changed since, it tooks nerve for me to keep buying when everyone is selling where the price keeping getting lower.
For example for symphony life, it has unbilled sale of RM852 million where current profit forecast is around 10 sen for this financial year (while price trading ard 40sen!).
