TM is the stock dearest to my heart. I have made much gain from it throughout the years of my investing history. I first bought it before it split into two entities, the other one being Axiata, its international portion. Last year just before the capital repayment of 30 sen per share, I cleared all my position as my calculation showed that I would have made a lot more if I sold at the all time high of 6.30 per share. And of course I had planned to repurchase it after the capital repayment at a lower price.
The price post-capital repayment was indeed lower and I was waiting for it to be still lower but unfortunately it hanged around 5.70 to 5.75 for some weeks. I was beginning to think that the price might even increase if I had not started to buy and so, out of "sheer anxiety" I repurchased the shares at 5.73 and as luck would have it, a couple of months after that the price began to fall.
Some smart guy later predicted that TM's revenue would decline as the age of mandatory retirement of its staff had been raised to 60 and so TM would not be able to rid of some of its staff to reduce its recurrent expenditures. This prediction brought the share price lower still and early this year it went down to even 5.25 at which I should have dollar cost averaged but had not!
So you can see that my paper losses was enormous then, but now at the current price of 5.47-5.49, it is not as bad. My overall gain is still much higher though so I am keeping my TM stock for its regular dividend. Tomorrow 27 May 2013 I should receive a dividend of 12.2 sen per share (tax exempted) in my bank account and this gives me something to look forward to, an amount enough for both of us to go on a week holiday in my favourite destination.
Next September, there should be another dividend (hopefully) of 9 to 10 sen per share and I plan on using the proceed to top up my AMB Value Trust following the declaration of its annual dividend. I might do this through Fundsupermart an online fund distributor, as the sales charge is at 2% instead of 3%-6.5%. Thanks to my fellow blogger My Investor for bringing this to my attention.
Actually if I were not that in love with TM, I should have sold all the shares and bought more Maxis shares instead at an annual 40 sen dividend per share. It is strange how attached we are with a particular stock! The behaviour is inexplicable.
By the way, I will only buy and hold stocks with high-paying dividends in companies with strong fundamentals and consistently positive financial results. I am not savvy about parameters like PE ratios or EPS though my two close relatives who are both Chartered Accountants have been explaining them to me ;).
That is why stocks such as SKPetro which has yet to issue dividends is not worth keeping at this stage. I have cleared another 50% of my SKPetro at 3.99 last week just before it fell to 3.89. There seems to be a lot of volatility and speculation on this stock which I am not happy with. Its stock price is increasing but its earning for the first quarter of this year was less than last year. I have to ask Tasha or Zana to analyse its balance sheet!
In the meantime, TM is here to stay till its next capital repayment!
The price post-capital repayment was indeed lower and I was waiting for it to be still lower but unfortunately it hanged around 5.70 to 5.75 for some weeks. I was beginning to think that the price might even increase if I had not started to buy and so, out of "sheer anxiety" I repurchased the shares at 5.73 and as luck would have it, a couple of months after that the price began to fall.
Some smart guy later predicted that TM's revenue would decline as the age of mandatory retirement of its staff had been raised to 60 and so TM would not be able to rid of some of its staff to reduce its recurrent expenditures. This prediction brought the share price lower still and early this year it went down to even 5.25 at which I should have dollar cost averaged but had not!
So you can see that my paper losses was enormous then, but now at the current price of 5.47-5.49, it is not as bad. My overall gain is still much higher though so I am keeping my TM stock for its regular dividend. Tomorrow 27 May 2013 I should receive a dividend of 12.2 sen per share (tax exempted) in my bank account and this gives me something to look forward to, an amount enough for both of us to go on a week holiday in my favourite destination.
Next September, there should be another dividend (hopefully) of 9 to 10 sen per share and I plan on using the proceed to top up my AMB Value Trust following the declaration of its annual dividend. I might do this through Fundsupermart an online fund distributor, as the sales charge is at 2% instead of 3%-6.5%. Thanks to my fellow blogger My Investor for bringing this to my attention.
Actually if I were not that in love with TM, I should have sold all the shares and bought more Maxis shares instead at an annual 40 sen dividend per share. It is strange how attached we are with a particular stock! The behaviour is inexplicable.
By the way, I will only buy and hold stocks with high-paying dividends in companies with strong fundamentals and consistently positive financial results. I am not savvy about parameters like PE ratios or EPS though my two close relatives who are both Chartered Accountants have been explaining them to me ;).
That is why stocks such as SKPetro which has yet to issue dividends is not worth keeping at this stage. I have cleared another 50% of my SKPetro at 3.99 last week just before it fell to 3.89. There seems to be a lot of volatility and speculation on this stock which I am not happy with. Its stock price is increasing but its earning for the first quarter of this year was less than last year. I have to ask Tasha or Zana to analyse its balance sheet!
In the meantime, TM is here to stay till its next capital repayment!
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