Time to accumulate undervalue stock ???

Today KLCI has resume its upward trend led by ‘Blue Chip’(1177.53), the investor may not want to left out from this rally, yet remain cautious due to fear of imminent correction.

The value investor may consider to accumulate the following ‘undervalue stock’ which downside risk is considered limited to me:-

1. Petronas Dagangan(5.20)

2. Mieco(1.26)

3. Airasia(1.45)

Again, if you have lower risk appetite, it will be better to wait for another 5%-10% discount at current price.

Transaction@16/1/2007

Ornasteel has reached my 1st target.
Disposed 6500 Ornasteel @ 1.25 ( RM8,075),
Bought 5000 LionInd @ 1.09 ( - RM5,500 ).

The portfolio balance as at 16/1/2007 is 7,000 Ornasteel @ 1.24 ( RM8,680) , 5,000 Lionind @ 1.10 ( 5,500) and cash of RM3,265. Total Mkt value is RM17,445.

See value in Lionind due to :

1) Will benefited from the demerger of Parkson from Liondiv

2) Better prospect in steel biz after various measures taken to improve efficiency within Lion Group.

Bad news for Silverstone & Amsteel

Announcement on 29/12/2006:

Bad news for Silverstone & Amsteel

Bursa Malaysia Securities Berhad ("Bursa Securities") had vide its letter dated 28 December 2006 rejected the Proposed Extension ("Rejection"). Pursuant to Paragraph 8.14C of the Listing Requirements of Bursa Securities, a suspension shall be imposed on the trading of the listed securities of the Company with effect from 9.00 am. Friday, 12 January 2007 and de-listing procedures shall be commenced against the Company.

Eventhough these 2 company will appeal against the suspension decision, the price of these companies is expected to fall as investors will rush to unload their stock to cut loss & recovered their cash.

IT'S INTERESTING TO SEE HOW IS THE REACTION ON 3/1/07 FOR OTHERS LION GROUP'S COUNTER I.E LIONCOR, LIONDIV, LIONFIB & LIONIND.

In fact, the fundamental for Lioncor, Liondiv & lionind remained unchanged and is not affected by the delisting of silverstone & Amsteel.

However, their price may drop due to market sentiment as Malaysia's retail investors is more on speculative one.

If the price drop actually happen on 3 Jan 07, this will offer an opportunity for us to accumulate more. I will enter to accumulate more if Liondiv drop below 5.80 or Lionind drop below 0.92.

My First Wish in 2007 - Child's Education Fund

I have one son ( 4 years old), and all I want to give him is good education. Since I have no faith in Malaysia's local university, I would like to sent him to oversea university when he finished his SPM.( 15 years later). Therefore I created this fund in 1/1/2007; My 1st Child's Education Fund.


I have allocated RM15,000 consist of 13,500 Ornasteel shares ( worth 14,310 @ RM1.06) and cash of RM690 as the initial investment in Child's education fund. I will invest additional RM2,000 every year in the next 14 year as the additional investment fund.

If I'm success full in my investment, average 20% annual compound returns on the investment fund will get me RM373K in year of 15th. ( refer table A)

if I can get 25%, my fund will reach RM644K in year 15th.( refer table B)

I wish I will success in my investment and the money is ready for my son's education financial needs when he reach age of 18.

( I will publish in this blog for any purchase / sell in this portfolio, and the monthly movement in market value)