Remember the LORD for it is he who gives you the ability to produce wealth and so confirms his covenant... Deut. 8:18

Monday, July 30, 2012

Buy. Maxis. GenM.

Maxis (nta 108, QQeps 7.3/ 7.2/ 12/ 7.6 sen) share price tumbled to RM6.30 after report of AK disposal of 5% stake in the company..
While it's not cheap with PE of 18, its dividend yield is very attractive at 6.4 %
For those who have missed out buying while it was RM 5.70 on Feb 7th, now is the time to buy some and hold for a year or two... This stock is especially for those who're thinking about investing in unit trust or buying into dividend yielding stocks..

Buy at 3 levels: RM 6.30/ RM 6.00/ RM 5.70
Don't worry too much about the downside, I repeat from my Feb 7th posting, the 40 sen dividend will bring your staggered buying cost to RM 5.90/ RM 5.60/ RM5.30 after one year..
Its lowest since IPO is approx RM 5.20

If you're using Maxis as your cellphone carrier or 3G, you should buy own some Maxis shares.
I asked friends who use Maxis mobile to own some shares and earn some dividend. To pay for their bills as it's a win-win scenario..
Same for those who uses DIGI, buy the Digi shares and earn the dividend to pay the bills. Sane logic, if you're supporting the business why not own part of it...?

I've been right about buying DIGI with TM all the way from RM 3.30 to 4.00 (TM currently about RM6.00 per share).
Telco share prices are usually slow moving but they do trend up. I can't guarantee Maxis will fly like TM or DIGI but over the long term, it's not possible to lose money on this one.
By the way, if you fancy regional telco try my favourites ; Singtel and Telstra ...

GenM (223, QQeps 5.5/ 6.1/ 6.2/ 4.8sen) trading around RM 3.30 with PE of 15
With more than RM 1 billion profit every year, it has plenty of cash in its coffer either to do acquisition, RPT (unfavorable) or reward its shareholder (maybe generously on one fine day.!)..
Why would I buy..?
It's the profitability, earnings predictability and gaming assets in the UK that interest me...

No comments: