Stock Portfolio Ending 06 Apr 2007

Greetings from The People’s Paradise… Wow... It has been a while since I did any updating on my portfolio; the last update was in February. For your information I am currently in Nigeria, some 24 hours flight away from my hometown. I think I am going to be stuck here from quite sometime due to work commitments. The place is not as bad as they look in the papers, kidnappings and stuffs are still going on, but their targets are mainly oil related companies. For those who have not been to Nigeria, this place is like 20 - 30 years behind Malaysia. Can you imagine there are still roads without traffic lights? Hur hur…

During my absence, we experience some ups and downs over the markets. At one time, our KLCI hit a low of 1,090 points but soon recover as the regional bourses got back to their feet. Over the meltdown, most of my holdings are not spared as well. They took the beating and now they are back to where they were (some even higher) before the downfall. Now, the KLCI is approaching the previous high of 1,285 points made on 26 February 2007. It does seem that the resistance will be very much intense as it reaches that level. This week, my portfolio inch up 4.90% compared to KLCI's 2.57% rise. As of today, my portfolio managed to return 21% from my initial capital, though there is nothing to shout about. I am pretty sure most of you all out there manage to get a higher return than me.

So far, my portfolio seems performing well, BJTOTO latest quarter was very much inline with the expectation. Dividend for the previous quarter has risen from RM0.11 to RM0.125. Cashflow seems strong and well taken care of. Also, BJTOTO manage to reduce their debt of over RM360 million incurred during the previous capital repayment to RM140 million in 2 quarters. Like I said in my previous write up on BJTOTO, I do foresee that their nett debt to be wiped out in no time. BJTOTO remains a cash cow and a strong dividend play.

LIONDIV too has performed reasonably well; manage to hit an all time high of RM8.80 from RM6.00 a month ago. Well, any profit taking during this region is not questionable; you can’t expect the share price to appreciate everyday without any form of dip. Any consolidation will prepare the share price for the next run up. Parkson HK was last closed at HK56.00+ closing to the target price of Goldman Sachs. Can there be any adjustment to the LIONDIV - ACB deal? Like I have stated previously, the China market is huge, and LIONDIV will set to benefit from it.

Lately, the copper price has risen to USD7,200 per tonne as of yesterday's closing from a low of USD5,500 per tonne recorded months ago. The all time high for copper price is at USD8,800 per tonne which doesn't seem far off. Will the price increase contribute to TAWIN's bottomline? As of today, TAWIN seems to have broken of their downtrend with substantial increase in volume and price. Do note that, TAWIN is a speculative stock, so do justify your risk reward before jumping into it. News like potential take over target seems to have faded off well after the previous run. Will there be any form of "news" now to push the price up again? However, they do seems pretty cheap now; looking at TAWIN which made an EPS RM0.406 last financial year bringing it to a PE 4x.

CYMAO, the wood related stock in my portfolio seems to have recovered from its low after a poor set of result last quarter, mainly dampen by a poor output from the plywood manufacturing side. Recently, CYMAO announce a tax exempt final dividend of RM0.05 bringing its dividend to RM0.10 for the previous financial year. Dividend yield came at 6.13% based on my acquisition price. Balance sheet seems reasonable with a nett debt of only RM16 million or 0.13x of its market cap.

Anyway, I will continue to do some updating when time permits. Till then, Chiaoz….