Type of Stocks
Blue Chip
Well establish company, large market capitalization, usually leader in the industry, benchmark by others. Fundamental value very strong, good earning history, quite resilient in business cycles.Generally Blue Chip share are quite expensive, the player who will invest in blue chip is Institution, retirery, mutual funds, and people with large cash.Risk preference level low to mediumAmong Blue Chip in Malaysia, British American Tobacco (BAT) they produce cigarattes, provide reasonble dividends, good earnings, fundamental value strong, same to Top Glove, the largest rubber glove manufacturer in the world, which is producing recession proof product, good management and so on. Digi, Maxis, Sime, Maybanks and many other Banks...
Income Stock
Stocks that generally provide frequent dividend and higher than average that given compare with other Stocks. Ussually for those investor who target on long-term basis, low to medium risk preference, and retire soon.In Bursa Malaysia, generally REITs able to provide an average of annual 8% return to their shareholders, which is good for those who especially conservatise, better return than fixed deposit (FD) which interest rate return of 2.5-5% P.A or normal saving account which is 0.2% for less than RM50,000 cash in account or 0.8% for above than RM50,000, either this rate is still less than 1%, therefore Regular saver should go for REITs, however must do research first.In Malaysia, among the top highest dividend provider is CCB, Cycle Catridge Bintang, which give about 20% return on dividend for past two three years.Weakness of Dividend is usually they are taxes twice, so generally of 8%dividend rate - 25% tax. however in Malaysia, dividend income are tax deductable, therefore when you received dividend that been tax, make sure you go rebate.
Growth Stock
Although growth stock can be said that their share price is low, however not necessary they are on the grow or new in the market, they may long establish.. Example, Company A which cost at 20cent may consider growth stock, for its share price is affordable and easily double in share value, but when the share price rose to RM10 after some time, then it might not call as growth stock, as RM10 to double in value, do take longer time compare to 20cents.Usually aggresive or speculator will trade growth stock, as generally it able to provide higher capital gain.According to theory, we should purchase the company when they are new in the industry, as they have room for expansion this same to their share price.In Malaysia, have many growth stock, but as usual, higher return come with higher risk..same must do research.
Defensive Stock
Stock that resilience toward business cycles, such as consumer product, necessity product and energy or public utilities and so on.Education such as SEG, segi international college, thousand of student from oversea study at the college, it offer variety of courses at attractive price, good marketing strategy, regardless economy good or worse, student is still require to pay fee to the college, and the number of student is increase. The share price is increase over time, from 0.80cent plus to a quite solid figures of RM4.30 recently.Other Public Utilities is Telekom, provide communication services, they are government link company maybe have some special advantage such as wide monopoly in telephone services, they have over 900millions active users through Malaysia, strong fundamental value and resilient toward economic cycles...Defensive is for those who are risk preference low to medium level, and for those who are regular savers, monthly can buy some to accumulate for long term, and for retirement...
By : imperialhan
Blue Chip
Well establish company, large market capitalization, usually leader in the industry, benchmark by others. Fundamental value very strong, good earning history, quite resilient in business cycles.Generally Blue Chip share are quite expensive, the player who will invest in blue chip is Institution, retirery, mutual funds, and people with large cash.Risk preference level low to mediumAmong Blue Chip in Malaysia, British American Tobacco (BAT) they produce cigarattes, provide reasonble dividends, good earnings, fundamental value strong, same to Top Glove, the largest rubber glove manufacturer in the world, which is producing recession proof product, good management and so on. Digi, Maxis, Sime, Maybanks and many other Banks...
Income Stock
Stocks that generally provide frequent dividend and higher than average that given compare with other Stocks. Ussually for those investor who target on long-term basis, low to medium risk preference, and retire soon.In Bursa Malaysia, generally REITs able to provide an average of annual 8% return to their shareholders, which is good for those who especially conservatise, better return than fixed deposit (FD) which interest rate return of 2.5-5% P.A or normal saving account which is 0.2% for less than RM50,000 cash in account or 0.8% for above than RM50,000, either this rate is still less than 1%, therefore Regular saver should go for REITs, however must do research first.In Malaysia, among the top highest dividend provider is CCB, Cycle Catridge Bintang, which give about 20% return on dividend for past two three years.Weakness of Dividend is usually they are taxes twice, so generally of 8%dividend rate - 25% tax. however in Malaysia, dividend income are tax deductable, therefore when you received dividend that been tax, make sure you go rebate.
Growth Stock
Although growth stock can be said that their share price is low, however not necessary they are on the grow or new in the market, they may long establish.. Example, Company A which cost at 20cent may consider growth stock, for its share price is affordable and easily double in share value, but when the share price rose to RM10 after some time, then it might not call as growth stock, as RM10 to double in value, do take longer time compare to 20cents.Usually aggresive or speculator will trade growth stock, as generally it able to provide higher capital gain.According to theory, we should purchase the company when they are new in the industry, as they have room for expansion this same to their share price.In Malaysia, have many growth stock, but as usual, higher return come with higher risk..same must do research.
Defensive Stock
Stock that resilience toward business cycles, such as consumer product, necessity product and energy or public utilities and so on.Education such as SEG, segi international college, thousand of student from oversea study at the college, it offer variety of courses at attractive price, good marketing strategy, regardless economy good or worse, student is still require to pay fee to the college, and the number of student is increase. The share price is increase over time, from 0.80cent plus to a quite solid figures of RM4.30 recently.Other Public Utilities is Telekom, provide communication services, they are government link company maybe have some special advantage such as wide monopoly in telephone services, they have over 900millions active users through Malaysia, strong fundamental value and resilient toward economic cycles...Defensive is for those who are risk preference low to medium level, and for those who are regular savers, monthly can buy some to accumulate for long term, and for retirement...
By : imperialhan
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