public bank, ytl, airasia

Today, public bank is about 10.40 per share. It is interesting to note in this economic condition public bank has already announced a dividen payment of 30cents per share. If the company announced a 25cents dividen per share as of last year, the bank will have a very interesting dividen yield of 5.3%. This is attractive as it means that it is higher that fix deposit by about 2% point while maintaining good loan growth locally. If interest is to rise in the next two years, it means that public bank will enjoy the loan that it has captured today and turn them into significantly higher profits. I think public bank at this price is a great toll road to be capture.

On YTL, interesting to note that this company has grow its earning by 5x in the last seven years. While this is not as interesting as highly innovative companies, the growth rate is phenomenal and represents a very very interesting growth company with interest all over the world. However, this fact is not appreciated by local investor due to the low profile business YTL is in. For a P/E ratio of 12, this is a bargain for a company that grows five X in seven years. A buy. Continue to accumulate to RM 10000.

Airasia is a stock that ask questions on the investor's skill. The stock is growing great both on the high line and bottom line. The business strategy to grow anxiliarry earning to overcome high fuel cost seems to be working where this earning doubles in the last 12 months. It contributed to 29ringgit per passenger. Considering that air asia's average ticket price is 189 ringgit, this represents about 16% of the ticket revenue. With the management focus to grow this earning to 60ringgit pax, if successful airasia will have a highly innovative low cost model. This stock is dragged down by the high level of dept due to aggressive purchase of aircraft. However, looking at the recent cash flow, the company suffers a deficit of about 20millions. However, this is the slow quarter and also not all the flight to singapore has been introduced. Going forward, there will be a increase in route quality due to increase flight to Singapore. The 20millions deficit should be narrowing or eliminated. I will say a buy at 1.40.

just a thought about share market

What a 'celaka' business! I admit of being a chicken. In five years of investing, i have missed a few golden opportunities. The most recent crisis is an example. Back in December when the market was at its bottomless pit, I did not took the opportunity to buy anything, although the valuation for some companies like Top Glove, IOI Corp, Public Bank were at absurd low. Knowing that these companies had strong track record during good and bad times, it was a golden opportunity to own them. Also knowing the history of the Great Depression, where shares appreciated 30% before any sign of recovery in the general economy, i should have been prepared to make the swoop. But alas, fear of a deeper recession and the market hit even greater low freeze me in my step. Great mistake! The market has recovered almost 25% from December low. What add salt to the wound was i have amass plenty of cash for just this sort of scenario. Moral of the story, have an idea of what stocks you want to buy, at what value and when the storms hit hardest, go for them.