Saturday, 2 March 2013

Investment as at 03 Mar 2013

Taking a bet that the sequester will not affect much of the markets, I made the decision to buy another stock, Yangzijiang Shipbuilding Holdings Ltd. Yangzijiang is a shipbuilding company that has since diversified into other areas. I have been monitoring this stock for a couple of months and noticed that it has a range of $0.86 to $1.10. Last month, I saw it dropped to $0.95 and wanted to buy. Then, it started to move and hit $1.00. It is giving out a dividend of $0.05, slightly lower than last year. However, at $0.955, the yield is about 5.24%. This is still higher than the interest I put in the bank. My target is to sell at $1.00 within the next 3 months. If the price drops below $0.955, I will keep it to collect $0.05 per share dividend in May. When it hit the buy price again, I will sell. This is not an indication to buy or sell.

Update: I check the SGX website and see the past notices regarding the notice of book closure. It is around the same time when it holds the AGM. So, for 2013, the next AGM is on 26 Apr, so I guess YZJ will announce the dividend on that day or so. It is SGD0.05 per share and based on today's price of 0.955 (still my buy-price), the yield is 5.2%. The payment date should be around end May or early Jun, depending on the outcome from the AGM.

My strategy is to see the price movement when the dividend has been announced (which was already announced in the YZJ's report) on 26 Apr. If there is an increase of $0.05 (from $0.955), I will sell it to get the 5% profit. If there is no change or lower than $0.955, I will keep and hold on till ex-div. Then I will decide whether to keep or sell after seeing the price after ex-div.

Target is to get 5% yield from this stock.

Investment as at 3 Mar 2013

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