05 September 2011

OPCOM HOLDINGS BHD (0035): Mini Review

I bought OPCOM at market price of RM0.805 last month (August 2011). The reasons for me to buy OPCOM simply because it has stable earnings (extension two-year contact with TM), strong internal cash flow generation, zero borrowing and no bad dividend.

Moreover, with the market price of RM0.805 to buy OPCOM, which contained RM0.56 cash per share, is equivalent to I only bought it with RM0.245 per cash. With expected EPS of 16sen annually, I will get back 100% investment capital within two years. Therefore, I believe that is the main reason why I was braved enought to enter the market during the period when bear market news were everywhere in the market.

The effect of special dividend did not change the market price of OPCOM very much since many investors still wait and observe the market trend in this uncentain period of time. Natural disaster, economy slow down, credit crisis etc. However, I still believe that as long as there is a good deal, I will enter the market, again, anytime, slowly and steady. Besides, I always remind myself that the reason I invest in stock market is to provide sufficient cash flow to buy more shares in the future. In other words, as long as the company can provide attractive dividend for me, I will hold it until the day it has been over-valued by the market. (except I can find better deal)

For me, this special dividend is not a good news because I haven't bought enough OPCOM shares before this announcement. Maybe I was too slowly and too steady. Nevertheless, I don't want to top up more OPCOM shares at this moment simply because I prefer to buy "sleeping shares" (shares with low trading volume). Besides, three more new companies are in my watch-list now. Hopefully, I can collect some of them during this month with cheap price.

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Written by: Xaivier Chia


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