Yup, Tanjong PLC rating was downgraded by S&P from ‘Strong Buy’ to ‘Buy’. Is Tanjong not performing already? Nope, Tanjong is still on the right track. S&P downgraded the rating but raised the target price from RM18.00 to RM19.00. Yeah… Same apply to Maybank Investment Bank Research, target price raised from RM18.60 to RM19.10. However, OSK Investment Research keeps the target price at RM18.60.

Hmm… Should I top up now with current price at RM16.58? Nope, I will wait until the price is below SMA (50) which is below RM15.80.

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I owned MUDAJYA 5085 last 2 weeks. I sold it at RM2.00 which I thought was good price. However, I was wrong…

A sharp increase in stock price

MUDAJYA 5085 performed better than expected. The stock price increased 50% in 5 days (just after I sold it. ) Well, is MUDAJYA going too far already? Nope, based on OSK Research. It revised MUDAJYA target price to RM4.06 on 6 August 2009. If this is real, MUDAJYA still have lot of up side to go.

What do you think? Buy it or hold on because the sudden 50% price increase is too much already…

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I am a Public Bank supporter. I have its 1 saving account and 2 share trading accounts (Collaterised Trading and Share Margin Financing). Too bad that I don’t own Public Bank stock. Okay, back to the topic ~ Public Bank Online Share Trading. Most of the brokers and banks provide online share trading facility. However, not all of them are the same.

Public Bank share trading account is nominate account. There is 30% discount on brokerage rate (minimum brokerage of RM12.00) when we trade online. For contract value RM100K and below, the brokerage rate would be 0.42%. While for contract value above RM100K – the brokerage rate would be 0.21%. The brokerage rate for intraday transaction will remain the same at 0.15%. Good for short-term traders.

The bad sides… I cannot buy Initial Public Offering (IPO) with this account. There is RM5.50 service charge when receive dividend payment. You will get the payment in your PB Sharelink account directly. (No need bank in the cheque yourself)

I have Maybank Online Stock account and OSK share account (OSK188) too. How about you? Do you invest in stock market?

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Yup. Mudajaya Group Berhad is a bright new star for me. Don’t know why that it caught my eyes and make me to invest on this Construction & Engineering stock. Anyway, I own some of it now ~ a very little. OSK Research made a buy call with target price of RM2.13 (up from RM1.90) and S&P Equity Research made a strong buy call (since February 2008) with RM2.20 from RM1.80. These research firms revised the upside target price so many times. Will MUDAJYA 5085 stock price still go up? Yes, definitely! But how much, that’s the question…

MUDAJYA 5085 stock price from June 2009

Guess what? Mudajaya Group Berhad just got another new project. See below announcement taken from Bursa Malaysia…

The Board of Directors of Mudajaya is pleased to announce that Mudajaya Corporation Berhad, a wholly-owned subsidiary of the Company has on 28 July 2009 been awarded a contract for the construction of a hospital in Pahang for a total contract value of RM75,388,000.00 (“the Project”) by Mudajaya-Takdzim Joint Venture, which was awarded the said project by Takdzim PMC Sdn. Bhd. on 27 July 2009.

Back to the question, how much can MUDAJYA 5085 go up? The price is RM1.79 as at 29 July 2009.

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Tanjong Plc is one of the 30 FBM KLCI stocks. It is independent power producer and Malaysian number forecasting operator (lottery). It is a good defensive stock because of its attractive 6.28% dividend yield (based on RM14.30 market price). With current fixed deposit rate of 2.5% per annual, Tanjong Plc is good to invest due to its good track of historical dividend payout.

Tanjong Plc performance since June 2009

I started to study the research done by OSK Research, Standard & Poor’s (S&P) Equity Research by Public Bank and Maybank Investment Bank. The 12-month target prices given by these research firms are about the same RM18.60, RM17.00 and RM17.60. I checked back the previous recommended target price. OSK Research gave a very aggressive price that cannot be reached. S&P is still okay to follow but failed to reach too. Why? It is all because of other factors like economy, politics. Therefore, we should only use it as guidance. Study and make your own decision.

What price should we sell? Nope. I don’t sell attractive dividend yield stock. We should keep it unless the company is not performing anymore. The question we should ask… What price should I buy? Buy at the discounted price during economy downturn. Normally, people stay away from stock market. But that’s the best time to buy these high dividend yield stocks actually.

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