Nice move today. +5.12%, with nice volume. Majority odds swing low has been printed on 27/10. There's a gap fill near 1.45. Very ambitious and minority odds it'll get there this year with KLCI markets in zig zag mode. But if KLCI can do a strong run for several weeks, then, odds improve. Unfortunately, I didn't manage to get my standard position, the position size is smaller than target, but still nice to see my holdings rise by 5.17% today.
Helps cover some of the red moves on the other parts of my portfolio, to allow my portfolio to hit all time new high again today! Thanks ANNJOO and thanks CSCSTEL!
I bought this counter for the dividend. Never expect the final dividend to drop from 14 sen in 2021 to just 3 sen last year. Should be able to pay more this year. Just keep, it only constitutes a small fraction of my portfolio.
If they keep up the good performance qtr to qtr basis, expect to be incentivized for holding or adding to your portfolio because price is still attractive to enter.
Steel counter is the next theme to goreng. Upcoming Construction Tender Jobs that have been delayed for awarding and expected to be announced, inclusive of existing contracts... - MRT3 - LRT - ECRL - Penang Mega Infra - Subang Airport - Mega Flood Projects - Johor Catalyst, RTS & HSR - Pan Borneo - Indonesia new capital in Nusantara, Kalimantan
CSCSTEL EPS is cyclical, and we just came off a cycle low last year. Maybe I think 70%-90% chance that over the next 5 years, we'll see double digit EPS again, with prices in the range between 1.5 to 2. My cost price is around RM1.15. Assuming it takes 5 years to hit these prices, the annualized Price returns ignoring Dividends are: RM1.5 = 5.5% per annum RM2 = 11.7% per annum
It's lowest dividend yield is 2.4%.
Thus, its good odds that if you can buy CSCSTEL cheap, the odds of getting a total returns of 8% to 14% per annum over 5 years or higher is very decent.
If own, no need to stress when prices will go above RM1.5 - it could take many years or next year. Nobody knows. The key is diversify, own small, and just relax. One day over next 5 years, it should get there and these kind of returns should be EPF over the period. Don't do active trading, commissions will just eat a huge chunk and if you play the buy high, sell higher price, inevitably, some of your trades will have losses that will eat into your cumulative profits, where after commissions, you may end up losing to FD rates if you do nothing.
Ternium is a South American steel company. Although it has some mining operations, these serve mainly in-house and are a small component relative to the steel output. It achieved revenue and profit growth through organic growth and acquisitions over the past 11 years. It has a strong financial position and a good capital allocation plan, creating value for shareholders. A Valuation based on the steel price cycle shows a sufficient margin of safety, making it an investment opportunity. https://i.postimg.cc/kgw7QWJk/Ternium.png
The company still hasn't announced its final quarter financial results for last year. It would pay its final dividend for last financial year only this year, likely in early July as in previous years. It is possible that it may pay 8 to 10 sen a share.
Should perform much, much better last year than it did in 2022 but its share price has not reflected this. Hope investors don't have to wait for too long to see its share price move upwards.
CSC Steel is trading at a PE of under 10, a dividend yield of over 7% and has net cash of RM350 million or over 80 sen a share. TSH is trading at a PE of over 15, a dividend yield of only 2.5% and after deducting loans and borrowings, its net cash position is -RM50 million. Malaysia is under the single-tier tax system. Malaysian shareholders are not required to pay income tax on dividends received.
Construction activities should pick up, meaning more demand for steel products. Government can impose duties on imported products to protect local steel industries.
According to Damodaran, projecting the performance of cyclical companies based on the current performance can lead to mis-valuations. He opined that for such companies we should look at the performance over the cycle – the normalized performance When I carried out such an analysis of CSC Steel, I found that there is still a margin of safety based on its current price. Refer to page 20 of the article. https://notice.shareinvestor.com/email/newsletter/invest/pdf/Vol197_Invest-01Mar.pdf
Judging from past records, CSC Steel should announce the timelines next week for its final dividend payment amounting to 9.4 sen a share. This should support its share price.
Wah ... so fast. Yesterday, I said minimum target is 1.47, 24 hours later, target is reached ... Thanks to CSCSTEL, HEKTAR and other green stocks offsetting red stocks, my portfolio made a new all time high again today after yesterday's all time high ... Thank-you Mr Market.
Investors haven't given this company a high valuation. It made over 23 sen a share in 2021 and declared a final dividend of 14 sen a share but its share price only went as high as around RM1.80 only.
I just blogged about CSCSTEL here in i3. Bought 5 times, haven't sold a single share yet. Noted Net Cash has grown the past decade and is now around 92 sen. It has a very high NAPS in a clean balance sheet of RM2.37. However, because it didn't share its profits as much, the price is still depressed at 1.52. This company has declared 9.4 sen dividend, hence, Mr Market is now happier. This company could declare 12 sen at FYE2025 and 15 sen at FYE2026 to lower the NAPS down to around RM2.25 and if it does so, or sends this message, no reason why this stock cannot make a new all time high past RM2.25 and trade at book value. However, it is unclear if the company wishes to do so or not. You'd think they will, but this depends. hence, long term investors should not have a full position in this cylical stock. It is still a cylical business over the long term.
Anyway, thanks to CSCSTEL and other greens to offsets reds, my portfolio has hit new all time high again today, the 10th time this month, as KLCI powers up to new heights! Trust everyone makes monies if they don't average down on their losers. Thank-you Mr Market!
Current price 134- net cash 92 =42 cents price per share. Eps a year 11x. Dividend 7%. Steel consumption will go up coming years. I buy keep for long term.
This is a cyclical stock. It earned more last financial year and declared a 9.4 sen a share dividend and price went above RM1.50 a share. Another 10 sen drop would be a very good buy.
Yes, just call for a hold will do unless the price target is 1.10 or lower. Maybe TA has forgotten that investors have to pay brokerage, stamp duties and clearing charges.
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prudentinvestor
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Posted by prudentinvestor > 2023-08-23 09:11 | Report Abuse
Bought at around RM1.20, how to take profit? This year's eps should be at least 15 sen and dividend shouldn't be less than 8 sen a share.