Rcecap belongs to AMINVESTMENT Bank. It Has A Forward P/E of 7.5. Trading at a 50% discount to NTA. Gives a yearly 15% dividend. And Company exercise consistent share buyback at 26.5 cts to 27 cents.
With the recent price rise of petrol, sugar, toll rates, GST and electricity tariff many people's finances will be squeezed. Many will find it hard to make ends meet in tough times. So pawn shops & Ah Longs should proliferate.
One legalised Ah Long is Rcecap. Rcecap like MBSB gives loans at higher rates. In Rcecap case it gives loan mostly to Govt Servants. And payment is by monthly salary deduction. Under these circumstances I think Rcecap should do well
rcecap write-off a lot of bad loans during last 4q & 1q.
many didn't pay-up i think. the latest 2q result also not so good. i think in order to revive it biz, NPL need to be under tight scrutiny else if keep on giving out loan with majority of them are bad loan, it going to dampen the biz further without recovering much of the loan, may end up not so solvent and the only destiny will be PN17...
Just follow Dato' Hashim of AMBANK. When you see share buyback at 26.5 to 27.5 try to buy some around 27 cents. Now he is buying between 28.5 to 29.5. Try to get some lower than him at 28.5 cents.
I think buying behind Company share buyback is safe. Try to get some on weakness before it crosses 30 cents. Don't chase over 50 cents when Edgedaily or Focus Magazine do a special write up on it.
My target price for RCECAP is 50 Cents. For this year we have to set our sight lower. Better be safe. Anything giving us 10% to 20% should be considered good.
Thanks and appreciate the advice given.Especially the effort of you in giving warning and recommending of the defensive counters for the tough year of 2014 market.
It is encouraging seeing you in reaping fruitful achievement by holding the principle of long term investment.The year of 2017 will be your 10th years holding of PMCORP shares.Is the TP of RM 1.50 is the target for the year of 2017?If yes,then expect the TP for the year of 2014 to be RM 0.50?
Meanwhile,I planned to invest in the defensive counters to earn some return.By the time,if lets said PMCORP and MUI Berhad had not move much,I will used some of the earning to invest more in PMCORP and MUI Berhad.
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....
hng33
20,511 posts
Posted by hng33 > 2013-08-19 08:47 | Report Abuse
Dividend of 1.5sen TE is closer now, a lot of buying volume queuing