@ TheContrarian, Dividend might not be good choice. I think if they able to go back to what they did last time, would be even better. Share buy back and when accumulate enough, give it out as bonus to shareholder. But as i mentioned 1 or 2 months back, Insas can't do that. They got to lock down loss on treasury share they're holding if they share buy back now. Only chance i can see share buy back is probably when their price is back to above 0.8. Only thing i don't like this Insas is sometimes their trade volume is really low. I see that as a risk to hold 1M share.
TheContrarian. As a retired finance professional, I have no appetite to engage in unproductive activities such as asking the directors to increase the dividend rate as you suggested because that’s the board’s discretion. I am absolutely at ease with my holding of 1M shares because out of the less than half a million I invested, slightly less than RM200,000 is the profit I made from my previous holding of the shares at a time when its fundamentals were so haphazard. I will make no further comment in this forum because I do not want to turn this forum designed to help prospective investors make sound decision into a chat room for unhelpful gossiping that overshadows well-researched opinions from others who may want to share their thoughts.
@ The Contrarian, check treasury stock Insas bought back and treasury stock value calculation in finance. I'm not finance background, just know abit. After that, just speculation. Anyway, i don't like dividend as those are taxable!!!!! feed the troll!!! Anyway, good luck.
@Ammar Roshidy. OK, one last comment. My long-term and stupid strategy in the mind of most people was inspired by an old doctor who grew his wealth by an additional RM6M by merely invested RM2,000 in a Singapore-based bank some 40 years ago. Think of all those who bought and keep the shares in Nestle and Public Bank. One of my friends invested RM30,000 in Nestle in 1975, he was forced to sell the shares and bonus shares for more than a million in late 1980’s in order to tide over his financial problem. If he retained the shares until today, they were probably worth 15M. He is quite broke now. I found later this is also Warren Buffet’s strategy. Why I hate unfounded gossips so much? Because I learned it the hard way. In about 2005, BJ Corp’s shares was only RM0.095. To me the price was ridiculously low considering its fundamentals. I wanted to buy 1M shares but I was stopped by all those “experienced” speculators who suffered heavy loss on the shares before. Being new to the share market, I was hesitant. But one of my “experienced” friends, bought half a million shares right way. A few days later, it went up to RM0.135 and he sold them and made RM20 K. I could not get over my psychological barrier and I never bought the shares. Less than 2 years later, the price went up to something about RM1.70. I missed my first opportunity to make RM1.5M. Nevertheless, I keep on finding germs covered by hay, companies which have growth prospect, good business, good management, seriously under-valued assets, etc. When I first speculated on Insas’s shares, the company just made the first 1M profit after 20 years of consecutive loss. Now it’s NTA is over RM2.00 and it has made tens of million of profits every year. At current price, PE is only about 6. Have I the slightest worry? No. Because I believe everyone is desirous of making profit and if the major shareholders are not willing to share the opportunities and profits of the company like Lee Kah Seng, Public Bank’s boss and others, they won’t go very far and they would never make it big even if they think they are the cleverest people in the world. Last words, you must have a livelihood and you only put your savings in good shares, just like my children, and keep on accumulating. For your reference the lowest price I paid for the shares is probably RM0.23 when Insas did not fare so well. The latest price I paid for the shares is over RM0.80. Who cares if you know the shares are unfairly under-valued because of emotional response.
@Eukansoft, thank for sharing. It is very good advise. Points to highlight... 1. Recession or obviously undervalue is key to success or safety. 2. No betting and no leverage. 3. Trustworthy management.
These are the key point that i bought some Insas share as well. But i keep looking to run whenever i saw Najib's news or the new budget release. Recession haven't started yet. Malaysia is following the trail of Indonesia. When you get USD 1 change 10 Ringgit, cry also no use.
So, beside all the good points, no one know the future, invest at own risk and there is no such thing as low risk.
@alooloo. You are being over-pessimistic. I have witnessed 4 recessions. 1997 is the worse because nearly every business had liquidity problems. In my opinion we are already at the worst but liquidity is still not a problem. The private sector and households are still flooded with cash. The government may be poor because of corruption and mismanagement of funds. But this is BN’s problems, not ours. Unlike Greece, not only the government had no money to spend, their banks also ran out of cash. We have yet to come to that worse. We should thank the former Bank Negara governor who held a thigh grip over the banks and financial institutions. However, if we are still entangled with the IMDB problems, Malaysia may miss out a lot of opportunities. In 10 years time, Malaysia may be overtaken by all the other countries in ASEAN because none of them has serious racial, religious and corruption problems. They can focus on development. That’s why some of my friends already took up foreign citizenships, even that of Indonesia.
New IPO: Building management systems (BMS), solar thermal systems and energy-saving services provider, Solar District Cooling Bhd aims to list on the Ace Market!
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
leno
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Posted by leno > 2016-10-12 15:26 | Report Abuse
confirm satu ringgit ?