TOP 10 Things You Can Do With RM15,600



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May 25 2007
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Supposing you’re holding Maxis Communications Berhad (KLSE: MAXIS, stock-code 5051) share now and has been cursing Ananda Krishnan for the low offer price for his ambitious privatization plan. Since then you’ve been dreaming It’s RM15.60 for Your MAXIS Shares – Would You Sell? You couldn’t make a decision but in actual fact you do not have much choice going by the paper as you’re being forced to let go of you baby regardless you like it or not. So, just let it go and move on with your life (most long-term investors are so attached with their shares) – there’re always a better trade tomorrow.

Now, Genting Berhad (KLSE: GENTING, stock-code 3182) has announced a set of encouraging result for its first quarter. Net profit soared to more than double to RM656.7 million for financial ended March 2007 compared to RM 307.5 million the same quarter ago. Revenue surged 65 percent to RM 2.03 billion from RM 1.23 billion in 2006 or the same quarter. Earnings per share (EPS) jumped to 17.78 cents from 8.72 cents for the same quarter.
Judging from the numbers it seems Genting’s UK casino arm, Stanley Leisure and Maxims Casino Club has become an entity which is getting more and more important in terms of revenue contribution. Genting Berhad, the only sole casino operator in Malaysia has indeed made the right decision to diversify specifically to United Kingdom and recently won the project in Singapore. Genting’s UK casino operation contributed close to RM 400 million to the groups’ chest. However the good number registered overall was partly due to one-off gains from disposals of existing Resorts World Bhd shares after the conversion of exchangeable notes into Resorts shares.
Fundamentally, Genting has consistently registers an uptrend in terms of EPS from RM1.32 in 2004 to RM2.12 in 2006. The same trend applies to Sales Growth. Income Growth and ROE however has been on a stagnant note since 2005. The excitement is definitely in the Singapore’s Sentosa Project which it won recently and is expected to contribute enormously to its bottom line. Technically, the support is at RM 7.80 and should this level be breached, the next support would be RM 6.40. At this moment the MACD is still weak and has not trigger and “Buy” signal yet.

So, what are you going to do with your $15,600 (assuming you’re holding 1,000 shares of Maxis) once you dispose it to Ananda Krishnan?
  1. You can buy double the shares of Genting – meaning if you’re holding 1,000 shares of Maxis now, you can buy 2,000 Genting shares (assuming you’re buying at RM 7.80). This is made possible and afffordable after the recent Genting stock-split of one 50-sen share into five 10-sen shares. It depends on the Genting stock price by the time you receive your hard-cash, of course.
  2. You can buy Genting shares in stages (e.g. 4 stages of 500 shares each or even 10 stages of 200 shares each) to get the best average stock price.
  3. You can wait (and hope) for Genting to continue to slide below RM 7.80 and buy at the second support of RM 6.40 (hey, anything is possible).
  4. You can be adventurous and consider other Telco listed companies such as Green Packet Berhad (KLSE: GPACKET, stock-code 0082) or DIGI.com Berhad (DIGI: stock-code 6947) but please do you research and homework first. I’m not asking you to jump in blindly, in fact it’s the most dangerous thing to do and take my blog’s suggestion as the ultimate bible.
  5. You can keep the money in the bank, earning the pathetic interest and wait for the stock market to make major correction due to external factors (China’s factor) before you pounce on other cheap offers.
  6. You can divert your intention to investing property because you’re sick and tired of Malaysia stock market.
  7. You can learn the interesting alternative of trading option or even investing U.S. stocks which has higher volatility, transparency and flexibility. You can even get to trade at an attractive commission-charged of below $1.00 per contract.
  8. You can learn how to trade forex (foreign exchange) since Malaysia Currency Continues to Strengthen. Heck, for all you know, you might have the potential to become George Soros.
  9. You can use the money to renovate your house in order to brag that you’re wealthy.
  10. You can use the money as the down payment to get a new car.

You can do 1,001 things with that kind of cash but you better plan in advance
with your hard-earned “wind-fall”. With the privatization fever at top speed, you might hit the jackpot again should Genting decide to join in the bandwagon. So, what would you do with the cash? Appreciate if you can share it here.

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Comments

Hi There,

From your recommendation no. 7 you said we can invest in the US stocks…I would appreciate if you could give some insight of how this can be done. Thanks.

hello anonymous … there’re so many U.S. stockbrokers which allow you to open trading account from your sweet-home in malaysia or anywhere in the world without have to step your foot on the soil of USA …

you can googled for it … amongst others are interactivebrokers, e*trade, optionsxpress, scottrade etc etc …

most of these brokers allow you to trade share, options, etf, etc etc …

you can apply via online … that’s what i’ve been emphasize all this while – the world is already borderless … to bad malaysian govn and some people are still living under the rock (not that i want to criticise) …

once your application has been approved, you can trade online …

cheers …

There’s certainly a lot to find out about this subject. I love all the points you have made.

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