Ya Horng Electronic (M) Bhd.

This is the new stock that I’ve added into my “value-stock portfolio”.

I bought it at a price of RM 0.550 two days ago. According to its latest quarterly report (April-2008), its net working capital per share is about RM 1.32, which is more than double of my buying price!

Other criteria found in this stock are:

• Zero debt. (no borrowings)
• Cash per share of about RM 0.65. (at Apr-2008)
• Low PE ratio (about 6, three year average)
• Consistent, uninterupted dividend payment for many years, and net DY > 5% in each of the past ten years (according to my buy price of 55 sen).

I bought the stock just few days after the execution date of its latest dividend (5 sen less 25% tax). So, I didn’t enjoy the latest dividend, and its cash per share should be around 61 sen now. However, my buy-price is still about 10% lower than its cash value.

There are also some negative sides of this stock:

• Its inventories and receivables is very high compare to its PAT. But they are still acceptable if compare to its revenue.
• Its profit margin is very low (about 2% in the past two years), and the margin show a decreasing trend in the past ten years. Some may say that it's in a "sun-set industry".
• The liquidity of its stock (trading volume) is very, very, very low.

The last point is the main reason why I didn’t buy it earlier though I’ve discovered it few months ago -- my quotation just couldn’t be matched.

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Selling Stock

This is the first time I've decided to sell my holdings since I started this blog.

In the beginning of July, two stocks in my portfolio had been sold.

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RUBHD

Sell at RM3.48.

Though I think that it should worth more, I don't think that the price of the take-over offer by Ranhill will be revised to a higher price. So, to save my time and utilise the money for other investment opportunity, I have decided to sell it.

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AKN

Sell at the price of RM 0.385.

A friend had decided to buy AKN after reading my blog. Then we started some discussion in a forum. During the discussion, some other friends give us warning signals about the integrity of its management. Though I can't be sured that they are right, I think that selling off AKN is the best way to protect my self.

However, I’ll keep observing the future development of AKN.

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My portfolio at 30-6-2008

Here's my portfolio at the end of June this year:

Note:

I've added RM 1050 into my portfolio in this quarter. The money was used to buy another 1000 shares of AirAsia. Other composition of my portfolio remain unchanged.

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