Yesterday, early in the morning my uncle drives his lamborghini urus pick me up and we take off to Tanjung Tuan, Port Dickson for a fishing trip. After reach the port, we take a boat and start our fishing days. Its was a hot and sunny day! The water was calm as a lake and we set off to our jigging field.
Before moving on to our conversation, do recall what previous post have mention, which is PHARMA.
Last post about PHARMA, two day later straight away limit up two day. Many reader come to thanks me personally, I feel great that can help many to make profit. I personally have make more than 100%. I have started buy in when my uncle first tell me on 5/7 (I also did share our conversation with the title (a visit to my uncle), next day I start buy in some already.
I believe many have missed my first article and last article about PHARMA, that's why I have make a telegram channel to inform everyone about my new post in last article, which is below:
click the link to join.
https://t.me/learnfromuncle
Since PHARMA hit more than 100% in short time, I follow my uncle strategy to take some profit and move to other stock that have just introduce by my uncle, which is EDGENTA.
So after settle down and waiting for fish to take our bait, I start asking question as usual to kill of the time of waiting fish get on my bait.
Below are some of our conversation.
Me: Uncle, here got shark to fish or not?
Him: Here I not so sure, but I am pretty sure many in BURSA.
Me: Haha, really uncle? Are this shark going to eat us?
Him: Surely if you did not understand how they swim. There are some good sharks, and some bad one, we need to know how to differentiate them, I sure you heard this before, you never know who swimming naked until the tide goes out.
Me: Oh.. seems to be a difficult job, how can we differentiate it?
Him: Very simple, good shark they will not push you very harst and bite you in the end, you can see many sharks in Bursa have been changing their appetite, from one to another, when the price is very high yet still keep shouting buy.
Me: Ok uncle, noted, it's better not to follow sharks if we don't know what they are going to do right?
Him: Yes you are right.
Me: Uncle, Why you can spot PHARMA, and it rise so quick and unbelieable.
Him: PHARMA is a very heavy local fund stock, majority shareholder are local big funds, it's obvious they are doing it on purpose. If you have experience and understand, then you can benefit from this recent push up. It's all planned, right timing on vaccine fill and finishing proposed by the minister.
Me: That's a little deep, lucky I have you uncle to guide me ride on this rocket ! Hehe !
Him: Be ready to sit on next rocket young boy ! More to come as they are going to rotating doing such movement, dont miss chance to get this raining money for the peoples.
Me: Wow....Oh yah uncle, Why EDGENTA have been falling last two day? Because many have panic and ask me what happen because they bought after I share in telegram that you tell me to monitor this stock last THURSDAY.
Him: Young boy, told you not to make yourself busy ! You can't take care so many friends ! Stock price up and down is very normal, we are looking for huge gain of more than 50-100% just like your PHARMA, one or two day movement also can't withstand, how can they earn big?
Me: Yes uncle, its true, I believe we must have patience, this I have been learning ever since the first glove stock you introduce to me. But that time I actually din't really monitor share price, so I don't get affected by few day down movement.
Him: Don't worry, have faith of good stock. Do you know why must monitor this stock?
Me: I did some studies and found that this company giving quite a lot dividend same like PHARMA, and been related to healthcare sector. So I assume it will have good future, should be just like that?
Him: Yes, that is part of the surface reason, PHARMA been push up also not just because of VACCINE news, many did not even notice that the dividend payout of PHARMA actually quite good. You should know that, fix deposit interest has been historical low, so high dividend payout stock with good prospect going to be on the trend now.
Me: Ok, wait, so what is the other part of the reason?
Him: Look, do you know who is EDGENTA largest shareholder?
Me: Erm... should be UEM GROUP BERHAD...
Him: Yes you are right, but who are the UEM GROUP BERHAD shareholder?
Me: I have no idea, I did not not study this company before, it din't list in the bursa right?
Him: Its 100% subsidiary of Khazanah National Berhad.
Me: Ok.. so you mean EDGENTA actually own by local fund?
Him: Yes, if you look at TOP 30, beside the largest shareholder, the rest are heavily held by local fund. If this company have poor prospect, they wont be invested so heavily.
Me: That's sound great ! I think I have no worry to continue hold for some time until it go up 100% again hopefully :D
Him : That's ins't enough, you should check who is the second largest shareholder.
Me: I have no idea !
Him: Its URUSHARTA JAMAAH, its a special-purpose vehicle of the Ministry of Finance, which took over Lembaga Tabung Haji’s non-performing assets, and they been selling of many company, but in another way round, they increase position in EDGENTA.
Me: Wow, that should mean they are really looking good at EDGENTA’s future right?
Him: You should have no doubt on EDGENTA future as they have close to RM 14 bil order book, it's enough for them to be busy and sustain earning for next 10 years. This URUSHARTA has been increasing position end of May when the price being sell down due to weaker result posted in May.
Me: Why such a good stock but uncle now only tell me ! haha !
Him: Because previously price action not yet ready. Look at last Wednesday, finally a strong sign coming already. It's time to move. The big fund have spoken. Just ride on like sitting on my lamborghini urus.
Me: Cool uncle! Thank you so much, since last round PHARMA many did not really know what price to sell, could you hint us this EDGENTA could potentially go until what price? So that if it goes up too fast, they will know when to take profit.
Him: Ok, over the pass 5 year, average dividend yield each year at current price is about 7%. Some year they give special dividend, and some year didn't. Now fix deposit rate in Most of the bank in Malaysia, not even give 2%. So do your math.
Me: If that's the case, if the price now RM 2.28, for 5 year average dividend yield at 7%, mean if the dividend yield to drop to 2%, it will go until RM 8 !! Oh my god, that's cannot be right?
Him: Haha, take in between, a 4% dividend yield will be the average of return in BURSA for a dividend stock, which translate to RM 4.00.
Me: Wow, if the price goes up to RM 4.0 still have 4% dividend I also willing to buy it, since its still way double better than fix deposit!
Him: Indeed, it's so true, especially this company is servicing 300 more hospital in so many countries, and I am expecting more hospital to be built in Singapore, India which will benefit EDGENTA, since COVID-19 is still uncontrollable.
Me: Hey Uncle, got fish eating my bait ! Lets hook it up !
Him: Lucky boy ! Lets return them to the sea, we are here just for enjoy the excitement. Not to eat them. Look at the Sky, it's getting cloudy, it's time to go home.
Me: Ok uncle ! (whenever he mention about sky, I remember of JCY).
After a long fishing trip with my Uncle, I went back home and wrote this, because I worry I will forget some of the important things he tell me. He have gave me great confident in EDGENTA, and I am prepared to increase my position. At the moment of writing this sharing, I have a portion already.
Above sharing is not to telling you to buy or sell, to buy or sell depends on your own judgement.
https://klse.i3investor.com/blogs/learnmyuncle/2020-07-26-story-h1510724507-EDGENTA_A_Fishing_Trip_With_My_Uncle_Retired_Fund_Manager.jsp
