Wednesday 10 January 2018

Malaysian not interested in high yield profitable companies?

There are quite a number of stocks that are profitable and paying good dividends. In fact, the yield is much better than keeping your money in the local banks (which pays <4% p.a)
However, most Malaysian folks still prefer high risks counters, expecting fast profits. These seemingly high profits may turn out to be high risks heavy losses stocks.


This drop in interest is seen in their price charts, all falling in prices over the past 2 years. Of course there are those that the big funds (like EPF, KWAP) pull out because the counters’ revenues and profits had been dropping the past few quarters.

Example:
BAT and YTLPOWER both seen drop in profits the last few quarters but their Dividend Yields (DY) are still above 7% p.a.
Take a look at their price charts and their financial information.
BAT (British American Tobacco)
YTLPWR (power generation, retail supply of electricity)









Not all of them are dropping in profits. Some have turned around and seen improvements.
Example:
BJTOTO have improved their margins in the last 2 quarters. So from its price chart, is it like bottom out already? Then it is time to buy and collect good DY (almost 6%)
BJTOTO (Sports Toto is in gaming and lottery)


But even when the profits are still good, yet the price is not going any higher! Take a look at TAKAFUL, is DY of over 4% not good enough for the big funds?
TAKAFUL (insurance)





Yes, prices already so low, maybe can consider a cheap buy?
MALAKOF’s DY is over 6%
RANHILL is over 10%
MALAKOF (power generation and water desalination)
RANHILL (water supplier to Johore)







Happy trading folks, may you choose your stocks wisely and consider value investing instead of risking your hard earned capital for “fast” profits.
If a stock can yield better than keeping in the bank, why not try it?

(note DISCLAIMER: above is not an invitation to buy, it is for education only)  

1 comment:

  1. Good one! So this blog will make us realize that stock market is not a gamble but can work in a way one wants. Only what you require is a proper study and a deep analysis.
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