Saturday, October 16, 2010

MWE Holdings - Is it a good choice?

I have bought the MWE holdings for about four months ago, and it has given me 4% of dividend. When I bought in, it was at the price of RM0.995, and I just sold it at RM1.070 two days ago.

Before I bought it, the price was already at mid-high level, which I believe its price will further increase, but uncertain. This is because, MWE Holdings has given 7% dividend last year, and with increasing dividend from year to year. What I predicted was it will continuously increase its dividend every year as long as its revenue can be maintained.

MWE Holdings has many subsidiary companies, which its five main operations are: garments, properties, lighting and pagers, plantation and other operations.(From google finance)

I was so rushed to buy it at RM0.995 because on two days later after I bought in is the date of ex-entitlement, which is the date when shareholders will be listed to be given dividend. However, I found that the P/E ratio is considered low at the moment I bought it, that's one of the reasons I decided to buy it.

Today, the KLSE index has reached 1489.86, and the time I bought in MWE holdings was only 1334.08, which is about 11.7% increment within four months! The increasing of index could be due to the good market estimation by most of the investors, after the announcement of the Malaysia's economy growth rate to be more than 9%. This year is the highest achieve year than previous. That's why, the bull market forms.

I decided to sold it at RM1.070, because I think that it's at the highest peak, based on the historical price chart. Moreover, the financial report of MWE holdings doesn't really contribute much to the further price increasing, it's the investors' sentiment to raise the price.

Now I sold it, I'm waiting for another suitable chance to buy it again.

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