Thursday, May 21, 2015

Stock Watch - GUOCOLAND

What attracts me to GUOCOLAND is their Damansara City development which is nearing full completion in about a year's time.

"The RM2.5 billion flagship project, spanning 8.5 acres of freehold land, boasts two 28-storey luxury residential towers (comprising 370 units)  known as DC Residency, two Grade A office towers, a five-star hotel which will be managed by Clermont Kuala Lumpur (part of Hong Leong Group) as well as a lifestyle mall.

DC Residency, the lifestyle mall  and the office towers are expected to be completed by end 2015, and the  hotel, the Clermont Kuala  Lumpur (KL),  will be ready by early 2016. Damansara City  has been designated as an Entry Point Project under the Economic Transformation Programme, to push Malaysia to  a  developed nation status by 2020. DC will serve a working and residential population of 10,000 in the vicinity.

The entire Damansara City project is expected to be completed well ahead of the Sungai Buloh-Jalan Semantan MRT line, which is scheduled to be operational before the end of 2016."

Artists’ impressions of Damansara City. The development features two 28-storey residential towers, two office towers, a five-star hotel and a mall. 

"Tan Lee Koon, Managing Director of GuocoLand said, “The construction of Damansara City is near completion  and the residences are actually being offered as a build-and-sell  concept...

...Priced at RM1,600 (SGD596) per square foot for the residences, Damansara City is setting a new benchmark in not just the Damansara Heights area but  in greater Kuala Lumpur and the regional  property market as well.  Damansara Heights is a high-end luxury enclave that has seen very little new development over the past 20 years. 

Damansara Heights’ strategic location, which is a mere five kilometres from the KL city centre, as well as its close proximity to KL Sentral and other established townships like Petaling Jaya, Bangsar and Mont Kiara,  have  always been its main selling point and greatest strength. The choice  of  destination for Malaysia’s most influential  people, living in Damansara Heights  is often seen as the highest mark of stature and  an accomplishment to live there. To date, the development  of  Damansara  City  has contributed  to  an  increase  of  between  eight  and  12 percent in property valuations for the surrounding area over the past two years...

...“Given Damansara Heights’ prime and exclusive location, we expect to see steeper price tags for all upcoming projects in the next few years. This is driving the current wave of interest in Damansara City as we offer tremendous value for savvy investors who recognise the potential of being a first mover on what would be an investment with the potential for double-digit  growth in valuations in coming years. To date, we have sold 50 percent of the units prior to our launch via private placement, seen tremendous interest in the mall tenancy and secured the majority of tenants for our office towers,” explained Tan. 

For the mall and hotel, Tan said GuocoLand planned them especially to attract people staying in the neighbourhood by  focusing on food and lifestyle offerings that support the needs of the community within and surrounding Damansara City. This  is  part of  its promise of  offering a luxury lifestyle that comes with  a  five-star service. The  Clermont Hotel Group from London, which is making its debut in Asia, will operate the hotel." more.


Question for investors: 

When the Damansara City project is fully completed, what will the share price of GUOCOLAND gonna be?

Wednesday, May 6, 2015

PADINI - Holding on for its dividends

Padini remains in my stock portfolio for its nice quarterly dividend payouts, adding up to 10 sen per year. This currently out of fashion stock provides a 7%+ dividend yield at RM1.38 - which is almost at a 52-week low price.

Wednesday, April 22, 2015

To Sell in May or not?

question Should You Sell in May and Go Away?Should You Sell in May and Go Away?

By Lawrence Meyers, InvestorPlace Contributor

So here we are in late March, and we’re quickly approaching the dreaded summer doldrums of the stock market. Somehow, the notion came about that returns in the market are worse during the period from May through November.
The old adage, then, to “Sell in May and go away” has caught on.
Interestingly, it is less important to know if you should sell in May, but rather to understand why you are investing in the stock market and what your goals are.
Check out this academic paper, or better yet, just take a look at this chart from CXO Advisory Group:
032715 sell in may Should You Sell in May and Go Away?

As for me, I will not be going into cash but will keep invested in a very defensive portfolio of mostly high dividend-yielding REITs which are trading at prices substantially below their net asset values e.g. TWRREIT, YTLREIT and AMFIRST. This will provide reliable passive incomes, come rain or shine, while waiting for their market prices to re-rate higher towards their net asset values. At the moment, I'm not very comfortable with stock punting.