It's time to identify some good stock to accumulate whenever the market adjust downward. Get ready your cash and apply SIM 1-2-3 investment approach. I have identified 5 stocks with following assumptions:
1. Adjusted EPS (-10%) based on bleak economic outlook for coming months.
2. Stocks with solid earning capacity and ability to pay consistent dividend.
3. Execute the investment plan with suggested entry points (total 3 entry points).
Suggested Malaysia stock with -10% adjusted EPS :-
| Stock | Industry | EPS | Adj EPS | DPS | Payout Ratio | Current Price | DY |
| | | | -10% | | | 23-9-2011 | |
| | | | | | | | |
| AEONCR | Consumer | 0.7086 | 0.638 | 0.32 | 50% | 4.70 | 6.78% |
| NCB | Logistic | 0.234 | 0.211 | 0.21 | 100% | 3.70 | 5.69% |
| TDM | Plantation | 0.528 | 0.475 | 0.19 | 40% | 2.82 | 6.74% |
| KFIMA | Plantation | 0.328 | 0.295 | 0.09 | 30% | 1.57 | 5.64% |
| AFFIN | Banking | 0.322 | 0.289 | 0.09 | 31% | 2.36 | 3.82% |
Valuation and Suggested Entry Points :-
| Stock | PER | FAIR PER | FAIR VALUE | ENTRY LEVEL | ||
| | | | | Level 1 | Level 2 | Level 3 |
| | | | | | | |
| AEONCR | 7.37 | 8.00 | 5.10 | 4.15 | 3.83 | 3.51 |
| NCB | 17.57 | 12.00 | 2.53 | 3.37 | 3.16 | 2.95 |
| TDM | 5.93 | 7.00 | 3.33 | 2.61 | 2.38 | 2.14 |
| KFIMA | 5.32 | 7.00 | 2.07 | 1.48 | 1.33 | 1.18 |
| AFFIN | 8.15 | 10.00 | 2.89 | 2.17 | 1.88 | 1.59 |
Counters To Put Under Your Watch List:-
1. AEONCR
-Consumer based and owned by Japanese
- expected EPS of at least 70 cts and dividend of 30 cts-40 cts .
-Price = RM4.70
- Accumulate when share price below RM4.50
2. NCB
- Port operator and owned by Permodalan Nasional Berhad (government linked)
- Consistent dividend payout. 25 cts-30 cte per annum
- Net gearing.
- Accumulate when share price drop below RM 3.50
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