Tuesday, May 23, 2017

Magnum (3859)

My first post after so long, didn't know I would write about Malaysian stocks.

I acquired Magnum (3859) around April - July 2016.
It was making good returns and good dividend back then.

Magnum Berhad appear on the newspaper headline this morning (23-May-2017).
While I don't really monitor my portfolio on a daily basis, I login to my eBroking platform, just to check how much damage it caused.  -17% loss.

Found the Announcement from this link: https://klse.i3investor.com/servlets/ptres/40330.jsp
Net profile fell by 56% YoY.
TP reduced from 2.35 to 1.70 (wow Public Bank! Your research could be one of the driving factor)
Read PublicInvest Research here: https://klse.i3investor.com/servlets/staticfile/304001.jsp

From the news it seems that Magnum Berhad - as a company - have few challenges, e.g. tax penalty, competition, lower ticket sales, higher payout - which caused them to under-perform, miss earning target and causing disappointment to the retail traders.  The announcement of "no dividend" hammered the market and the diving of share prices.

I do not hold much Magnum shares:
4,400 shares x RM2.25 average purchase price =  RM9,893.84 gross investment;
4,400 shares x RM1.86 current market price = unrealized loss RM1709.84 (-17.28%).

In the event it fall to RM1.70 as PublicInvest:
4,400 shares x RM1.70 forecast = potential loss RM2,413 (-24%).

That could be the worst investment in a year.

1 comment:

  1. Hey Ayumi! Sorry to hear about the losing investment, but it's nice to see a new post from you.:)

    On the bright side, at least you have the background skills and knowledge to make decisions on dealing with this, unlike most folks who have no experience and just go into "hope and pray" mode.

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