The Main Streeter Portfolio (30 Jun 2012)

Volume 4 Issue 28: Intelligent Investing


The KLCI keeps breaking its all-time high and has breached the 1,620 level. Is this cause for joy, or will it be short-lived? If you are a strict market-timing top-down person, you really have to ask, what are the economic fundamentals telling? I'd say that things are lukewarm at best. Bank Negara maintained the OPR, while the ECB and PBOC cut interest rates. Malaysia still has some room to maneuver as it moves further and further away from depending on external demand for growth. Not that this is a good thing. Economic growth will be propped up in the next couple of years through government designated projects. The market is fuelled by election-related activities (aka massive IPOs, new investment projects announced etc) and when this blows over, speculators will be left groping for fresh bullish news and is likely to come up short.

There are two camps of speculators right now. Those who have sold because the market is at an all-time high and those that are buying high because they think they can sell higher. Who do we believe? That is actually a trick question. What makes you think you should be in either camp? That kind of herd mentality is for speculators.

Intelligent investors seek out stocks with high margins of safety. They dig and dig and dig to find good companies at good prices and swoop in for the kill. Remember that Mr. Market is your friend. He is there day in and day out telling you what he is willing to buy/sell at based on his mood.

All an intelligent investor needs to do is to keep his head down and do the homework and wait for Mr. Market to go crazy and offer you a deal you can't refuse on a good stock.

All said and done, here are the updated activities for The Main Streeter Portfolio. Harrisons paid a final single-tier dividend of RM0.20 per share for its financial year ended 31 December 2011.


30 Jun 2012

HARISON
Current Market Price: RM3.57
Cash Balance: RM90,048.48
NAV per share: RM1.0433

4 Jul 2012

HARISON
Current Market Price: RM3.42
Final Single-Tier Dividend RM0.20 per share
Dividend Received: RM800
Cash Balance: RM90,848.48
NAV per share: RM1.0453

Disclaimer: All company analyses, including the paper portfolio that appear in this newsletter are derived from facts gathered from various sources and the contributors' personal opinions and for education purposes. It is NOT an invitation to deal in securities, and especially not a recommendation for buying or selling any stock. The contributor(s) do not guarantee the accuracy of the facts being presented. The accuracy of such facts are only as reliable as the sources that they are obtained from. Please consult your investment advisers before acting on any information provided by the analyses here. The authors most likely have interests in the stocks that are discussed in this website.