Saturday, March 30, 2013

Rather than Wait to Move, I Move to Wait

Election, when will you be?? Najib, when are you going to announce parliament dismiss?? Everyone is waiting until the neck long long ar…Seriously, this election is the longest waited election. Everyone, no matter which state are you from, where you are working, what race you are, as long as you are Malaysian, you are waiting for it.

I’m waiting for the election as an investor. A lot of people in the stock market are worrying about what will happen right after the election. Be it BN win or lose, PR take over or not, what will happen to the stock market? The result is very uncertain.

I was waiting for it since last year. My last deal was done on 22nd August 2012, adding on Vitrox at RM0.67. I still have certain cash on hand, which I am ready to invest into for any stock if there is chance. The longer I wait, the more chance I lose of earning from the stock market. I have been stopped researching on stock companies.

Say no to WAIT. Time is cost.

Until last week, I decided not to wait for the PM anymore! Rather than relying on him, I have to control it myself. Not to be controlled by the market, but I manage my own portfolio. I start my homework again.

Reading on the companies in Technology sector again, I found a chance. INARI, which was relatively new in KLSE, public listed for not more than 3 years. It was priced at RM0.405 when I studying it last weekend.

I studied this stock before, and found that it was a bit risky for me to invest because it was still new, as I can’t see how much further it can grow from current point. Last year, it acquired a company called Ametron Global, which has contributed a large portion to the company’s overall profit, for consecutively 3 quarters. The PE ratio was so low, which was the main point that attracted me to look into it.

Besides, its dividend yield was high, about 8%. This is another strong reason that encourage me to buy in. Why? Because I can increase my cash flow income. For the past 4 quarters, the company gave out dividend. Which means, every quarter I will get a certain amount of dividend. This would increase my cash time value, which allow me to reinvest, rather than waiting for one whole year to get one time dividend in a lump sum.

The stock index is climbing high this few day. At this point of time, with PE of lower than 10, and DY of higher than 5% was very attractive. What’s even more, the financial statement show a stable profit throughout three quarters after acquiring the Ametron Global.

One more reason that attracting me, large portion of INARI business geographical segment is in Singapore, which has a very strong semiconductor demanding market. How do I know it? Because I am working in semiconductor company. Research here is strong, especially semiconductor. INARI is doing the business of semiconductor. Attractive enough.

A little bit worry, but don’t care, because there is value, I have my strategy

Many people has bought in earlier than me, which was around RM0.38x. I bought it at RM0.425 on Monday. Why would I dare to buy it at this price? Because, as long as I can have the cash flow in future, I can buy it. It is still considered as undervalued now.

However, I am still worried about what will happen after election. What if the price dropped after the election? This is the reason why I stopped researching since past half year. But, I decided not to wait any longer, and rather than worrying here, it’s time for me to implement my strategy! I split my cash into half, rather than buying the stock at one time, I buy in with half of my cash, and half later by observing the market. This is to ensure I don’t miss all my chance, yet I don’t lose all my money. What’s more? There’s value in the stock. I don’t scare. I finally found what is it about not to worry in investment again.

Be prepared for the worst, be brave for the best.

No comments:

Post a Comment