Not propose, this purchase already done. "A day after announcing a RM310m land purchase in Klang, Boustead Holdings Bhd (BHB) is spending another RM138.9m to buy Hyde Park Hotel in London, in a bid to expand its stable of properties beyond Malaysian shores."
Waren, please look at Bsteads dwindling dividend -- i am sure they will keep the DY at 5-6% because the pensioners (LTAT) will need that return, but this stock is heading for RM3.6
A genuine investor would want to have this counter in his portfolio. Especially at the present price level. Asset-rich company, and the prime mover of Mutiara Damansara. But have to also take into account the comment by @Amit Khindriya above. Its dividends might be reduced due to the more challenging times. Palm oil prices especially.
4.00 seems to be very strong support. Of course, this is only so until it isn't. I'd love to put some money into this counter. It's not a counter that will result in extreme worry and heart attack for the investor. At the same time, expectations of capital gains have to be more reasonable. Boustead isn't likely to bring in 50%-plus profit over a year, like penny stocks and those lower-priced. But it should protect your money, plus bring in regular dividends.
@Amit Khindriya Before this, Boustead had done well as compared to the other investment-grade counters. At least it wasn't giving heart attacks to its investors with unnerving falls. In fact, it had gone up last week. But looks like Amit may be right with his prediction of 3.60.
Boustead's dividends are good but the latest quarter report raises some concerns. Its EPS has undergone a significant reduction, which threatens future dividends.
But the fact remains that Boustead has many valuable assets. I'm hoping the price will become even more attractive. This is one of the counters that I hope to have in my long-term investment portfolio.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
kenziumc
19 posts
Posted by kenziumc > 2014-08-01 09:00 | Report Abuse
propose only.....