Stock “Highlights” – 2017 Year End Review

Scorecard for 2017 stock highlights as follows, where returns for 2017 stock picks underperformed 2016 ones. Time to move forward to 2018!

Stock	Entry Date*	Exit date	Entry Price*	Exit price	Dividend + Capital Repayment	Total Return (%)	Note
Red Sena	14-Jul-17	31-Dec-17	0.455	0.470	-	3.30%
Insas-PA	19-Jul-17	31-Dec-17	0.970	0.955	0.02	0.52%
					Average	1.91%
* Next Bursa market day based on the date blog post is published with closing price approximate entry price

Note: This is not an investment advice. Buy and sell any securities at your own risk.

Disclosure: None.

Insas – PA – Defensive High Yield Preference Share?

Investors looking for some high yielding instruments may consider Insas-PA listed on Bursa Malaysia (Code 3379PA). It is a preference share issued by mother company Insas Berhad, a mini conglomerate with a collection of stakes in various companies such as the high flying Inari Bhd.

The key investment merit from Insas-PA comes from its expected dividend distribution and mandatory redemption by the company. There are 5 more dividend distribution cycles in which holders of Insas-PA will be getting RM0.02 per share for another 5 rounds all the way till beginning of 2020 which comes to a total of RM0.1 per share. At maturity which is expected to be in end February 2020, the preference shares will be redeemed at RM1 per share.

Should investors able to purchase the preference share at RM0.965 or RM0.97 based on best ask prices, you can expect to gain a little over 13% over the course of 2 years and 7 months, which works out to be a little over 5% per annum of investment yield.

Investors should take comfort on the financial strength of Insas Bhd where last check on its March 2017 quarterly report, it has a healthy net cash balance of over RM240 million, way above the expected dividend and redemption payout of about RM132 million.  

Pros: Healthy above average yield, backed by healthy balance sheet

Cons: Funds lockup, need to hold to maturity to fully realize gains

Note: This is not an investment advice. Buy and sell any securities at your own risk.

 
Disclosure: None.

Red Sena : Safe Haven in times of turmoil?

Red Sena, an F&B SPAC listed on Bursa Malaysia (Stock Code: 5270) is currently sitting on 371m cash trust proceeds. Similar to the Reach Energy, shareholders who vote against the acquisition of a business concern identified by management are entitled to their share of cash trust proceeds.

Cash trust currently owing to public shareholders amounts to RM0.464 per share, a tiny 2% discount against the current ask price of RM0.455.

Shareholders can only expect FD like returns ranging from 3-4% per annum net that comes with potential for solid acquisition targets. Downside for shareholders is protected with the right to reject any deal that is deemed expensive or businesses that has murky future outlook.

Investors may diversify into this unique situation-based stock. With stocks riding high every day and solid undervalued gems ever harder to be found, investors may park their cash in this stock in the event of a widening discount against cash trust per share.

Note: This is not an investment advice. Buy and sell any securities at your own risk.

Disclosure: None.

Stock “Highlights” – Year End Review

All Investors dabbling in stock market are in it to grow their bank accounts so that they can buy more stuff in the future. During the short 1 year existence of this blog, there have been a couple of listed stock market deals highlighted and it is good practice to present the scorecard for the specific stocks highlighted as the year 2016 comes to a close with several assumptions as per the scorecard below:

Should you have invested your hard earned cash in equal proportions in every single counters above, you would have been 10.47% “richer” at the end of the holding period, assuming you dispose all investments at the stated “best case scenario” and 16 December 2016 “report card date”.

Is 10.47% good enough returns to justify the sweat and tears of digging through exchange filings and bearing the potential pain of share price losses? Is spending hours analyzing individual counters worth the 10.47% as compared to putting all your eggs in Fixed Deposit with a Malaysian Bank which will yield you 4% tops? Probably or maybe not.

Hope 2017 will present whole new sets of juicy speculative deals which I may pen my simple thoughts on, and bear some financial fruits for my bank account.

Note: This is not an investment advice. Buy and sell any securities at your own risk.

Disclosure: None.