Stock Picks which Generated Impressive Returns (Hard Facts Inside)

(Last Updated On: 26/01/2014)

Stock picking – not something I believe, do or condone personally on regular basis. After all, how many industries or stocks we can follow with a business to run or a day job? Here’s my take, the part where I practice DIY investing – I make sure that’s something I really know so I don’t need to check it everyday. And the other part where I don’t DIY, I’ll pay reasonable fee for others to do it if it is proven they can generate more returns than what I paid. Sounds reasonable?

Which is why I want to share with you today on 3 companies which I had to agree with bright growth prospects. These are not just analyst reports but from fund manager who are actually invested their clients’ money into them and also had the privilege to really meet/understand the management behind the companies invested. Something good to leverage on – because I don’t think any retail investor (not unless you are Koon Yew Yin perhaps?) can walk up to a public listed company’s management and said “I want to dissect your company before I invest RM 10k into your stocks”.

I’ll make this short and sweet for you in point form. Start paying attention to these stocks. 

Disclaimer: This is not an invitation to buy or sell. Read the below at your own risk. Source – PCM

Prestaring

  • Higher ICT training revenue, on top of software distribution
  • Increasing training services in oil & gas sector(lucrative business!) through a newly acquired oil & gas training training company
  • Winning new contracts – 3 years contract to Ministry of Education, and Microsoft software to Al-Rajhi bank. Multi million deal

Tune Ins

  • Lower net claim ratio
  • Growth frm China and Thailand air travel policies
  • Expanding on Air Asia India and Zest Air
  • Aggressive on digital advertising & remarketing -Google Ads, etc (brilliant! I use this myself)
  • Acquiring an oversea general insurer
  • Increasing volume for holiday seasons in Dec up to Feb 2014

OCK Group

  • Growth of 4G LTE – mobile enthusiasts should note this. How awesome it is to invest in company that provide you with all the technologies you are using?
  • Rising demand for 4G – demand to double in 2014 – telco sites providing recurring revenue (best business model)
  • Benefiting from Budget 2014 – RM 1.5bil spending to build 1,000 towers in rural areas for basic connectivity. OCK is riding on this wave with the proper expertise and licensing
  • Regional Expansion into Myanmar
  • Diversification of business into “solar farm”

 Listen to this video for the real Numbers on the Return – 37+%, 32+% and 45+%

I got asked often – what’s the charges? Isn’t that high?

My answer – 3% one time and 1.5% recurring annually out of asset value. Yes it is, compared to you doing DIY of course 

But, let’s put that into perspective – how much is your sales charge when it comes to UT equity funds, example – one of the largest UTMC in Malaysia? 5%? 6%?

And unit trust do charge recurring annual fee – that’s the fund manager salary. It ranges from 1.3% to 1.8% and already factored into the NAV. 

With that laid out, it is neither cheap (compared to DIY) nor expensive. It is quite standard.

What about minimum investment?

Option 1: RM 50k for cash

Option 2: RM 10k for EPF#1 first withdrawal, and making up to RM 30k within one year.

CLICK HERE TO see how is fund manager performance in 2012, and how they compare against their peers

If you are not already a client of PCM, and would like me to share with you the reports and with intention to have a private fund manager for KLSE stocks, fill up your contacts below:

Before we wrap, this is another thing I find it interesting from the CIO Chief Investment Officer message:

PCM sub investment managerYou are by default, the main investment manager of your own assets as no one else, but yourself decide on how much you intend to invest for your surplus savings such as where to put your money, which instruments you intend to invest in and how much to commit in an investment scheme. You are the one who makes the final decision on your asset allocation and how much risk you want to assume. Hence, your final asset allocation will determine the future performance of your investment. As such, it is important that you understand the respective investment return and the associated risk. 

Most people feel comfortable when they invest in something that other people around them have also invested in. Such phenomenon of crowd follower may not be necessarily a good investment strategy. In fact, more investment opportunities can be discovered if we do not restrict ourselves to the few instruments that our peers are investing in.

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