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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Two value-stocks: ADVPKG and TAFI

Here, I 'd like to introduce two stocks, which I picked into my value-stocks portfolio.

Advance Packaging Technology Bhd.

Last week, I bought this counter at a price of RM0.55. Its net working capital per share is about RM0.81. Hence the price/net working capital = 0.68, giving me a quite satisfactory margin of safety. Others factors that make it a value-buy are:

• Zero debt.
• Stable Revenue and profit in the pass ten years
• Consistent dividend payment. (the average net DY is about 5%)
• Plenty of cash in the company. (Cash per share = RM0.63)

Its PE ratio is about 9, not very attractive. But with the above criteria, I think buying this stock with RM0.55 is a good and safe investment.

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Tafi Industries Bhd

I bought this counter at the beginning of March. With a buying price RM0.39, its price/net working capital is about 0.93.

Some good criteria found in this company are:

• Zero debt.
• consistent, and relative high dividend. (three years average of net DY = 7%)
• Low PE ratio. (three years average PE = 5.4)

Besides, its profit shows a gradually growth during the past three years. Hence, with its low PE and good DY, I'm willing to have it in my portfolio although the margin of safety is not that much.

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