I have been in the stock market since 1993. In my younger days I would sit in the gallery from 9.00 am until 5.00 pm Monday to Friday whenever the market was hot. Nowadays I'm more a passive investor. I buy based on my instincts and sell when prices rise high enough. Always diversify over a few good counters since each counter move at different time.
Never fully invest. You need to set aside some cash in one month FDs as standby to take advantage of market falls and crashes. The market will definitely recovered. All falls and crashes are temporary.
Problem is Insas has weak major shareholders who pledged their shares under margin financing with high interest rates and the miserable annual 1% dividend is grossly insufficient to service the interest payment.
B4 the last inari bonus issue, the price of inari should be Rm3.85 now. Those insas previous disposals of Inarinwere below Rm3. About 30% gain in non disposal of inari share if compared to quarter ended Sep16 dispoal of inari
Q3 result will looks good if investment team still hold on their financial instrument stated in june 2016 where majority of the foreign currency is Australia dollar which its exchange rate had appreciated from 3.15 in dec'16 to 3.40 now
Insas, the company and group is doing very well. Huge gain on investments, huge gain from foreign exchange, huge interest income from its RM500,000,000 cash at bank and FD. So why did the share price collapsed after the release if its wonderful results?
Among the top 30 shareholders of Insas are six individuals who each hold between 1.8 million to slightly over 3 million shares. Problem is all these shares are pledged shares bought using borrowings. The miserable annual one sen dividend has been grossly insufficient to service the interest. So, what you are seeing is the forced selling of these pledged shares. The number of shares run into millions. Why isn't Insas doing any share buy backs? Because they can't. Why can't? Because it will take the controlling shareholders' shareholding to above 33% and trigger an MGO. The controlling shareholders do not have the financial capability to buy the remaining 67%.
I dont regret to invest in insas despite undervalued n not move in correlation with inari. After seeing many oil and gas counters, property, steel and banking stocks hard hit in year 2014 n 2015. Such as perisal, lion div, lion industry, mbsb, drnhicom, uem, maybulk and, any others,the price tumbled at least 50% to 95 %. I feel comfortable with insas diversified businesses. And profitable company and started to give dividend, even with only 1 cent interim
hmm.. wait is better. March Fed rate hike is quite likely. I would expect another round of rate hike squeeze from US dollar strengthening. I don't dare to add more now as well, not because of stock, but rather valuation of Ringgit. Last time i sold Malaysia Stock, is 3.21 (MYR/USD). Now it is nice number of 4.44 (MYR/USD), which in mandarin sound like die die die. I bought some Malaysia stock 3-6 months ago due to i thought the ringgit is low enough and oil price, China and election might help a bit for Bursa. But just some small position due to the risk or Ringgit!!!!
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alooloo
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Posted by alooloo > 2017-02-23 15:46 | Report Abuse
ya... i knew. I mostly in USD now. Just want to know how you divest. You making money in Bursa, so, see how you do then i could learn abit.