KLSE ~ Bank Shares ~ which is the Best?

Everyone (including me) always like to ask the same questions:

"Which share is the safest option to invest???" ...... I wish I know the answer......*LOL*

I think the best answer is NONE. All shares have different kind of risks associated with their business.

Lets talk about the following BANKs shares:

1) PBBank
2) RHBCap
3) Maybank
4) AMMB
5) CIMB
6) HLBank
7) HLFG

Which Bank is the BEST??

• Based on Total Assets:                                                      Maybank

• Based on Net Assets Per Share:                                          HLFG
• Based on Dividend %:                                                         Maybank
• Cheapest Value at the moment:                                            AMMB
• Highest % increased since the so called recession in 2008:    AMMB





So which one should we invest? My View:

If you look at the table above, Maybank, PBBank, CIMB and RHBCap gave the most dividends. Nowadays you only get around 3% interest per annum for a 12 months FD a/c. So this is a plus compare to FD a/c.

Although dividend is one of the important thing to consider, yet if you look at AMMB. It increased the most since the last so called "recession" in 2008. 212.50% increased!! That's a huge profit!!

Another example is CIMB, the dividend payout is higher than the FD a/c @ 3.70%, yet the increased, since the last so called "recession" 2008, only about 16.61%

Thus, no real answer about which one is the best to invest.  

As mentioned in my previous blog "Recently Big Drop in US & European's Stocks ~ KLSE Affected?"http://awonginvestment.blogspot.com/2011/08/recently-big-drop-in-us-europeans.html , banking sector didn't drop much recently ~ only drop approx. 10% ~

You should wait until these shares drop at least 50% of their highest value before start considering to buy in.

Buy in low and wait few years ~ this way you will get the advantage of high dividends plus increased in value for the share.

Calisa M @ Puchong by Masteron Sdn Bhd

Project name:    Calisa M

Area:                Puchong

Developer:        Masteron Sdn Bhd (http://www.masteron.com.my/index.html)

Type:                Condo

Tenure:             Leasehold

Price range:      RM221,760 to RM366,960

Size range:        775 to 1055 ft2

Price/ft2 range: RM286 to 348/ft2
Total Units:      156units

You can get more info from following website:

http://www.iproperty.com.my/developments/developmentreview.aspx?pid=2162

The developer is a small company started business in 1981 (30 years in business). I never heard about this company before but seems like they are the one who build the Koi Kinrara @ Puchong.

Location: Quite far away from KLCC, that's why the price/ft2 is lower compare to 8 Petaling @ Sri Petaling (http://awonginvestment.blogspot.com/2011/08/8-petaling-by-petaling-garden-sdn-bhd.html) which I have blogged about it recently. The price/ft2 is approx. 20% less than 8 Petaling.

Google Map

Price is about 7% more than Casa Tropika which is located in Puchong too.

• Casa Tropika @ Puchong - selling around RM268 to 294/ft2 [info @ Feb 2011]http://www.casatropika.com.my/

My view:

• The 7% premium mentioned above might be due to better location, better developer, more facilities etc. So best way is to go there have a look, compare both development, before making any decision.

• One of the advantage for this development is that it only has 156 units compare to Casa Tropika which has 520 units. If you want to sell it fast in the future, you might consider for a development with less units.

• Based on 90% loan for RM221,760, say BLR6.6%-2.2% = 4.4% interest per annum, for 30 years. The monthly repayment is approx. RM999. If you are planning to buy & rent for investment, you need to take this into consideration. Will ppl willing to pay more than RM1,000 per month to rent a place in Puchong?

To me I still believe the property prices in Klang Valley are too high at the moment and should collapse soon (maybe after 2012 election). Unless you are desperately to invest now, we shall keep more cash in hand for rainy days.

Good luck in ur investment!! 

Selamat Hari Raya :)

AWong Investment wishes all readers Selamat Hari Raya!

TIMECOM ~ a share to look at?

TIMECOM (5031) http://www.time.com.my/

Background:

• TIME dotCom Berhad is a public listed company, listed on the Main Market of KLSE since 2001. Incorporated in 1996 as TIME Telecommunications Holdings Berhad, changed its name TIME dotCom Berhad in 2000.
• TIME dotCom's full suite of telecommunication licenses has enabled the TIME dotCom group to operate and offer its services, ranging from voice and data communications to broadband Internet, satellite connectivity, private networks, as well as other IT and communication solutions. 

Current Share Price:  0.53





My View:

This share has drop around 46% recently since April 2011.

As metioned in my previous post "Recently Big Drop in US & European's Stocks ~ KLSE Affected?", I believe there are still room for KLSE to drop further and we shall only look at shares which drop at least 50% from its highest value.

I'm currently looking at this share and planning to buy in. The reason i like it is as follows:
a) Value drop 46%
b) Net assets per share is 0.49 which is similar to the current share price stated above
c) One of the major shareholder is Khazanah Nasional Berhad with approximately 42%

The down sides for this share is no dividends payout, so you might think why we take the risk now? Why not put it in the bank for FD and get around 3% interest per annum while waiting for the market to crash further?

So you might have to think carefully before consider this one.

Take care & all the best in your investment!!

8 Petaling by Petaling Garden Sdn Bhd

Project name:    8 Petaling

Area:                Sri Petaling

Developer:        Petaling Garden Sdn Bhd (http://www.madabouthomes.my/index.asp)

Type:                Condo

Tenure:             Leasehold

Price range:      RM621,888 to RM1,685,888

Size range:        1690 to 4867 ft2

Price/ft2 range: RM346 to 368/ft2

You can get more info from following website:

http://www.iproperty.com.my/developments/2190/8_Petaling

http://www.madabouthomes.my/LST_hglt_vw_pg.asp

The developer website is interesting ~ MADABOUTHOMES ~ hahaha....

Anyway the developer is a wholly owned subsidiary of Permodalan Nasional Berhad (PNB). So have less chance to go burst during economy crisis.

Location:

• near Bukit Jalil
• near Taman Gembira (Happy Garden)
• near Kuchai Lama
• near Taman Overseas Union

Price is reasonable for about RM346 to 368/ft2

• Seringin Residences @ Happy Garden - selling around RM400/ft2 [not yet completed] http://seringin.com.my/
• The Z Residence @ Bukit Jalil - selling around RM398 to 436/ft2 [not yet completed] http://www.thez.com.my/
• Kuchai Avenue @ Kuchai Lama - selling around RM353/ft2  (completed) http://www.akisama.com.my/index.php
• Dynasty Garden @ Kuchai Lama - selling around RM339/ft2 (completed) http://www.akisama.com.my/index.php

Besides, recently a lot of condo launched around Cyberjaya, which is far away from KLCC, selling more than RM400/ft2.

Thus the price for this condo is consider reasonable to me.

Good luck in your investment!! ^_*

Recently Big Drop in US & European's Stocks ~ KLSE Affected?

Not much changes to KLSE ~ many ppl worry and said KLSE index drop a lot.....as shown in the chart below:






Based  on my research, main shares doesn't drop much ~ still have room to drop more

• Banking sector - not much changes ~ AMMB is the main one which drop about 10%, yet this share has gone up more than 200% previously

• Construction sector - this sector is the one which drop most compare to other sectors ~ most of the shares drop between 10% to 30%.

My view is keep your cash first. Wait until shares drop at least 50% of their highest value before start considering to buy in....

Besides, Malaysia going to have election next year (2012), so I believe the government will try their best to keep the economy steady ~ at least until the election is over ~

Good Luck everyone!!

Saver or Investor??

1. Saver will put $$$ in the bank to get interest, say around 3% per annum with FD a/c
2. Investor A (Bank) used the $$$ and borrow them to Investor B (other banks, companies, ppl) and get interest say around 4% per annum or more
3. Investor B used the $$$ to buy properties, shares, do business etc and hoping to get return more than the interest charge by Investor A, say 5% or more

So do you wanna be Saver or Investor??

For me, definitely Investor  ^_*

I'm a risk taker