Posted by bugle > Nov 20, 2013 05:21 PM | Report Abuse X
should be, just a matter of timing. have been holding since 2008. so long as PBA is making profit and giving dividends twice a year, i find no reason to dispose it. waiting for special dividend, don't mind to wait for another 5 years. yes, you might say how many ten years do we have. haha, I'm thinking if I can't enjoy it, just give it to my children. if i don't get capital appreciation (which i don't believe it won't appreciate), at least i got peace of mind.
This is a fundamental stock and not many are holding it will go up as the NTA is very high. Short term 1.50 no problem medium term 1.80 and long term you will see 2.00 and above
The reason why it drop it followed Puncak .remember Puncak and this stock two different scenario. Buy on weakness and fundamental and good management intact
I like this counter a lot because water is a basic necessity and recession proof. However, I think it is only defensive with limited growth potential by 2 negating factors you should know:
1) The 7 reservoirs in Penang is insufficient to provide for the water needs of hilly and land scarce Penang. It draws its water supply from Kedah's rivers. Since Kedah has fallen into BN's hands. The days of free water from Kedah is over. So prepare to pay a lot more. Reason? Because PKR is squeezing BN's PUNCAK & KPS In Selangor by Blocking Their Projects. I think BN Kedah will do the same for PKR Penang by raising problems for PBA.
So PBA has no choice. To prevent costly wastage PBA has imposed higher rates to prevent losses. Raise water tariff to pay more dividend to shareholders? Forget it. That is not the reason.
Another detrimental factor is PKR is giving FREE WATER in Selangor & I Think also in Penang. Correct me if I am wrong. This is a form of vote buying. Buying the favours of voters at the expense of PBA share holders. So politicking has done disservice to shareholders of Puncak, KPS & also PBA.
A better defensive stock than PBA would be SILK Holdings. Like Litrak which benefited by Puchong's Real Estate Boom - Silk Toll Road will benefit from the Growth of Kajang For Years To Come.
Both Water Utility (PBA) & Toll Road (Silk) Are Defensive & Recession Proof.
For water - no matter how bad times are - we still need to take our bath, drink some water and maybe wash our clothes & cars. So PBA will survive. But the growth restrain is due to politics.
For a toll road like Silk - it is also defensive due to its monopolistic nature - no alternative route if we want to go any where.
I fully agree with both of you. You have made wise choice in PBA. I once owned PBA before but sold off years ago. I do look forward to buy again if price should weaken some more.
By the way, I have visited 3 PBA reservoirs in Penang. The one with Double Fish Eyes near Fettes Park to Tg Bungah, the hilltop one near Ayer Itam Town & the one near to Teluk Bahang. Very nostalgic memories of peaceful Penang Island.
Ya ... pradeep... Expecting next run up after CNY long holidays and better year end quarter financial report in February. Next target ... RM1.30 to RM1.50. ONGMALI....MALIIIIIIIII.....
There Is A Surge of Interest Into Silk Holdings Today. SILK Is A Very Defensive & Recession Proof Counter. Since PBA Also Has Similar Defensive Quality - It Is Only A Matter Of Time That More & More Investors Will Pay Attention To PBA.
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....
Tessa Joseph
7,919 posts
Posted by Tessa Joseph > 2014-01-07 14:11 | Report Abuse
baby needs to take vitamins