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Investment Analysis Report

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Submitted By elianabard
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Single Asset Investment
General Information

Capital RM 100,000
Company invested Chemical Company of Malaysia Bhd
Sector Industrial
Share’s name, code CCM (2879)
Amount invested RM 93, 800
Share price/unit RM 1.34
Quantity (lot) 700
Duration 8-Weeks Share Price Outlook Date | Price (RM) | Fri, Oct 12 2012 | 1.34 | Fri, Oct 19 2012 | 1.34 | Fri, Nov 02 2012 | 1.32 | Fri, Nov 09 2012 | 1.30 | Fri, Nov 16 2012 | 1.25 | Fri, Nov 23 2012 | 1.21 | Fri, Nov 30 2012 | 1.20 |

As shown in the table above, CCM’s shares are not well performed as the price dropped started on the fourth week all the way to the eight week and during the period, not once the price has increased more than RM 1.34. So, at the end of the period, the investor will have to bear a loss of 14 cents per share. At the right column is the graph showing the share’s performance on weekly basis.

Share’s Selection Process
CCM’s shares were selected based on the company’s financial stability over time and it is one of the companies with “neglected firm” characteristic. CCM’s limited institutional interest and lack of information may surprise investor in the future. Their involvement in pharmaceuticals and healthcare industries is an advantage as the industries proved to be one of the rapid growing industries in Malaysia.
Share’s Performance Graph

Share’s Profit/Losses Date | Price (RM) | Qty (Lot) | Value (RM) | Fri, Oct 12 2012 | 1.34 | 700 | 93,800.00 | Fri, Nov 30 2012 | 1.20 | 700 | 84,000.00 | | | loss | (9,800.00) |
Unfortunately, from the calculation above, the investor will have to bear the total losses of RM 9,800.

Portfolio investment
General Information Company | Code | Sector | Share | *Price (RM) | Qty (Lot) | Value (RM) | AMMB Holdings Bhd | 1015 | Finance | AMBANK | 6.33 | 30 | 18,990.00 | Bumi Armada Bhd | 5210 | Trad/Serv | ARMADA | 3.69 | 50 | 18,450.00 | Sime Darby Bhd | 4197 | Trad/Serv | SIME | 9.72 | 20 | 19,440.00 | UEM Land Holdings Bhd | 5148 | Properties | UEMLAND | 1.82 | 120 | 21,840.00 | UMW Holdings Bhd | 4588 | Consumer | UMW | 9.98 | 20 | 19,960.00 | | | | | | TOTAL | 98,680.00 |
*Price at Fri, Oct 12 2012

Portfolio Asset Selection

Five stocks were selected from four different sectors as an effort to diversify the portfolio. All these five stocks were picked from FBMKLCI 30 components stocks. The reason is because it is less risky and would be easier to monitor the portfolio’s performance. UEMLAND stock which is in properties sector conquers half of the total investment in asset allocation. It is a decision made based on the company’s current multi-billion ringgit integrated mixed development project known as Gerbang Nusajaya in Johor. Besides, UEMLAND stock is cheaper compared to the other four stocks.

Share Price Outlook | | | Price (RM) | | | Date | Ambank | Armada | Sime | UEMLand | UMW | Fri, Oct 12 2012 | 6.33 | 3.69 | 9.72 | 1.82 | 9.98 | Fri, Oct 19 2012 | 6.44 | 3.68 | 9.79 | 1.83 | 10.08 | Fri, Nov 02 2012 | 6.37 | 3.9 | 9.76 | 2.12 | 9.98 | Fri, Nov 09 2012 | 6.35 | 3.96 | 9.7 | 2.13 | 9.97 | Fri, Nov 16 2012 | 6.43 | 3.87 | 9.56 | 2.25 | 9.95 | Fri, Nov 23 2012 | 6.37 | 3.88 | 9.55 | 2.16 | 9.94 | Fri, Nov 30 2012 | 6.38 | 3.7 | 8.97 | 2.11 | 10.62 |

From the share price table and the graph, Ambank stock, UEMLAND stock and UMW stock performed well as all three stocks priced higher at the end of period. Meanwhile, Armada stock and Sime stock have lower ending price than the beginning price.
As stated before, these five stocks are picked from FBMKLCI 30 components stocks. Below are the graphs showing the performance of both FBMKLCI and average portfolio’s price.

From the graphs above, the only point where the graph shows obvious difference is at 2-Nov. For FBMKLCI graph, the values drop from 19-Oct to 2-Nov whereas for Portfolio graph, the values from 19-Oct to 2-Nov increase. Other than that, the performance of Portfolio is similar to FBMKLCI performance.
Portfolio’s Profit/Losses Date | Share | Price (RM) | Qty (Lot) | Value (RM) | Fri, Oct 12 2012 | AMBANK | 6.33 | 30 | 18,990.00 | Fri, Oct 12 2012 | ARMADA | 3.69 | 50 | 18,450.00 | Fri, Oct 12 2012 | SIME | 9.72 | 20 | 19,440.00 | Fri, Oct 12 2012 | UEMLAND | 1.82 | 120 | 21,840.00 | Fri, Oct 12 2012 | UMW | 9.98 | 20 | 19,960.00 | | | | TOTAL | 98,680.00 | | | | | | Date | Share | Price (RM) | Qty (Lot) | Value (RM) | Fri, Nov 30 2012 | AMBANK | 6.38 | 30 | 19,140.00 | Fri, Nov 30 2013 | ARMADA | 3.7 | 50 | 18,500.00 | Fri, Nov 30 2014 | SIME | 9.8 | 20 | 19,600.00 | Fri, Nov 30 2015 | UEMLAND | 2.11 | 120 | 25,320.00 | Fri, Nov 30 2016 | UMW | 10.62 | 20 | 21,240.00 | | | | TOTAL | 103,800.00 |

From the data and calculation above, the investor has gain profit of RM 5,120.00.
Single Asset Investment VS Portfolio Investment
Single asset investment Portfolio Investment Date | Total Value (RM) | Fri, Oct 12 2012 | 93,800.00 | Fri, Nov 30 2012 | 84,000.00 | Losses | (9,800.00) | Date | Total Value (RM) | Fri, Oct 12 2012 | 98,680.00 | Fri, Nov 30 2012 | 103,800.00 | Profit Gain | 5,120.00 |

From both table above, it is safe to conclude that portfolio investment is better than single asset investment.

Othman yeop abdullah
Graduate school of business
BWFN 5013
INVESTMENT

Name : Nureliana Binti Baderi
Matric No : 813365
Title : investment report
Lecturer : En. Mohd Radzi B. Mohd Rejab

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