Dividends for Week 19: 9th to 13th May 2011

Bursa Malaysia: dividends with ex-date for Week 19, from 9th to 13th of May, 2011:

Sold MEGB (30% profit). KLSE888 portfolio @ RM6000 (20% profit).

KLSE888 portfolio manage to sell MEGB at RM2.30 today. 30% of profit pocketed within a month. Overall, whole KLSE888 portfolio stands at around RM6000 (20% increase from RM5000 capital within 1 months since inception).

Why did I sell MEGB when it is still bullish? My reason being simple:

1. My target for MEGB is 30% profit.
   
   
2. I had identified another stock which I think will bull in the coming weeks: GENS-C8 and GENS-CC.
   I think GENS will outrun MEGB in short term, since MEGB had up by 30% since it's low last month.
   Thus, I had swapped MEGB with both GENS-C8 (RM0.21) & GENS-CC (RM0.12)

Reason for me to choose GENS-C8 and GENS-CC:

1. Genting Singapore is going to announce it's 1st quarter result on May 2011. I am betting it to be very good, due to CNY 2011 profit and also the disposal of the money-losing GEN UK business.
   
   
2. I think the current mother share price will reached SGD2.20 - 2.25 (today's closing price is SGD2.12, 52-week high was at SGD2.35).

Downside for picking GENS-C8 and GENS-CC:

1. Tan Sri Lim Kok Thay always give me surprises (e.g. last quarter loses).
   
2. I don't have luck with Genting :D

I shall monitor the coming weeks to determine whether my decision is right or not. My target is for a 10 - 20% profit exit (period around 2 weeks to 1 month).

MEGB met resistance at RM1.83

MEGB can't fly today due to resistance at RM1.83. It is unknown whether it was the doing of it's 2 previous investor (FMR LLC and Smallcap World Fund Inc), as both of them had ceased to be major shareholder (investor don't need to report buy/sell of company share once their shareholding falls below 5% of total company shares).

Anyhow, there seems to be a good news (which won't affect the earnings of MEGB): MEGB had entered into an agreement with Kinta Medical Centre Sdn Bhd (KMC) for both parties to jointly collaborate on academic research and development in physiotherapy with technical assistance from KMC at a centre to be named Masterskill-KMC Physiotherapy Centre to be set up by Masterskill in Kinta Medical Centre owned by KMC, to engage in the following with operational costs and expenses incurred by the Masterskill-KMC Physiotherapy Centre to be borne by KMC and any profit received by Masterskill-KMC Physiotherapy Centre shall be distributed equally between Masterskill and KMC for a period of five (5) years commencing from 25 March 2011:-

1. providing the physiotherapy education and training programme (“Education”);
2. research and development activities;
3. providing physiotherapy services to the public and to accept Masterskill’s students for clinical attachment purpose; and
4. such other business, purpose or activity as is necessary or convenient to the conduct, promotion or attainment of the clauses (1) and (2) above.

I am still holding MEGB shares (with 3.4% profit at RM1.83), and I shall decide within this week on whether to swap with another potential stock to take a quick profit, or wait, as the current resistant seems to be the doing of FMR and Smallcap.

Why KLSE888 portfolio chooses MEGB & GENS?

Why I pick MEGB:

1. Earnings are strong, PE 7.5 (latest quarter earning = 9cts, future PE = 5.2 (i.e. RM1.87 / (9cts x 4 quarter) )
   
   
2. It had fallen to recent new low, with no clear reason except huge selling by it's investor FMR LLC & Smallcap World Fund Inc and not by it's founder.
   
   IPO @RM3.50, 52-week high @RM4.30 (29/7/10), 52-week low @RM1.67 (15/3/11)

Why I pick GENS-CD:

1. Recent new low RM0.10 as at today, 52-week high @ RM0.21 (29/12/10), low @ RM0.08 (15/3/11).
   
   
2. Positive future growth. Asian gaming stocks will only rise (e.g. GENTING). Its rival, Marina Bay Sands is trying to buy more lands, which means good prospect. Australia casino king is also commenting that world 2 most profitable casinos is currently in Singapore!
   
   
3. It had sold it's money losing GEN UK to GENM. So, now it can concentrate on it's Sg business!!

I had allocated 80% for a 3-month OR 15-30% exit plan. (Medium RISK)
Another 20% shall be for a 1 to 3-week OR 10% exit plan. (High RISK)

Short term target: Grow my fund at 50% within 6 months.

Recent Purchase

Since starting this blog, I have the intention of recording my trade experience and also my portfolio performance. I had intended to setup a RM5,000 fund and see how it grows.

Currently, my portfolio is as follow:
GENS-CD    (bought @ 0.085)
MEGB          (bought @ 1.76)

RM5,000 is not a big figure, so the quantity of stocks I can play along is quite limited. Mostly will be speculative penny shares, warrants, and also those that had fallen sharply.

In my coming post I shall reveal why I pick the above stocks and my thought on the exit plan.