Tafi sold.

For the second time, Tafi was sold from my value-stocks portfolio. The first time I sold Tafi was during Nov-2008, then I bought it back in early December.

Here's the summary for these investments in Tafi.

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1st investment。

• bought 3000 units at 39 sen in Mar-2008.
• received dividend of 1.5 sen per share (less tax 26%).
• sold all at 43 sen in Nov-2008.

Total return is 10.5% for a period of nearly 9 months. Annualized return rate is about 14% p.a.

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2nd investment.

• bought 3000 units at 32 sen in Dec-2009.
• received dividend of 0.75 sen per share (less tax 25%).
• sold all at 40 sen in Oct-2009.

Total return is 23.5% for a period of 10 months. Annualized return rate is about 28% p.a.

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Conclusion.

Taking the average of these two investments, the return rate I get from Tafi had just achieved the minimum requirement of my value-stocks portfolio, i.e. 20% p.a.

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Choo Bee Metal Industries Bhd.

This is the new member in my value-stock portfolio

I bought Choobee at price of RM1.53 per share, which is equal to 68% of its net-working-capital (according to its Jun-2009 reports).

Other criteria of ChooBee:

• Low debt position. (according to its Jun-09 report, debt-equity ratio only 10%+)
• Continuous dividend payment for more than 10 years. (though net DY only around 3%）
• Low PE ratio (about 5.5 based on three years average EPS).

The negative part is, its has a high inventories and receivables level.

However, after comparing its figure in the past ten years, a found that Choobee's inventories and receivables are maintained at a stable level as compared to its revenue. And the figures from others steel companies also show that high inventories level is quite common in this industry.

Thus I think it's quite safe to invest in ChooBee.

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UMS sold.

UMS was sold from my value-stock-portfolio yesterday.

Actually, the current share price of UMS is still below its net-working-capital per share. The reasons of selling include:

• I bought Triumpl into this portfolio few weeks ago. Since these two companies are in similar business and both of them have very high inventories level, I think it's better for me to hold just one of them.
• The return on UMS already exceed my target return rate.
• I had found some other (more attractive) companies for investment.

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The following is a short summary for my investment in UMS.

• bought 1500 unit at 70sen in Sep-2008.
• received dividend 6 sen per share (less 25% tax) during holding period.
• sold at RM1.14 per share in Oct-2009.

Total return is 65% in 13 months. The annualized figure is about 59% p.a.

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