Tuesday, February 15, 2011

Why I buy MPHB?

MPHB has been kind to me  making money from this counter has never been easy in the last few years.

To make money from this counter, one has to be patience and have holding power. But not now, since the counter is hot after it announcement to own 100% of Magnum shares last week.

I have been buying and selling MPHB shares for sometime and let me tell you why I like this counter?

Firstly, MPHB is the parent company to Magnum, one of the four gaming company in Peninsula Malaysia, and Magnum has already delisted from Bursa a few years ago, therefore by buying MPHB indirectly I am owning Magnum shares.

Second, share price for MPHB is the cheapest among the four gaming company in the Peninsula Malaysia, namely GENTING, TANJONG and BJTOTO. The cheapest among these three are BJTOTO which is values at RM4.00++.

Third, MPHB's management team also doing their job by discarding non-profits businesses before and after delisting of Magnum and tried to concentrate on its core business. Therefore, the potential to turn the company into profitable is insight.

Fourth, as Magnum is a cash-cow company, whoever holding it will not short of money.

Fifth, MPHB is buying-back their shares continuously and has been paying good dividends for last few years, which is better than FD.

Example in 2009, MPHB was very generous by declaring a distribution of treasury shares of one (1) treasury share for every ten (10) existing ordinary shares, a 10% return.

Anyway, I have been buying and selling MPHB shares since it was valued at RM0.90 until now, RM2.72 as at yesterday closing. With MPHB holding 100% on Magnum, I will hold the remaining a little bit longer. Probably will buy in some more if the price drop below RM2.30.

The comments above do not represent a recommendation to buy or sell. Buy or sell at your own risks.


  1. Heard that MPHB will be selling their shares for RM2.30 each. But which shares? MPHB or Magnums shares when it gets listed again?


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