Dayang: Why I don’t want to sell?

Koon Yew Yin 17 Dec 2019 

After reading my article “Dayang: my fastest speed record in making money” many people ask me why don’t I sell some of my holdings and laugh all the way to your bank? They said that since my wife and I have a total of 36 million Dayang shares and, if we sold 1 million shares at current price of Rm 2.45, we would have Rm 2.45 million per year. It would take us 36 years to sell all our holdings. By that time, we would have gone out of this world. How could you spend Rm 2.45 million per year or Rm 200,000 per month? 

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You may like to know why I do not need to sell Dayang to live comfortably:

1 We are very happy and contented. We have a lot of my money to do charity, especially to help poor students to complete their tertiary education. Any student of any race and religion, whose family income is less that Rm 3,000 per month, can apply for my scholarship to study any course in local universities. Write to my wife who is charge of my charity work and her email address is [email protected].  Up till now we have help more than 300 poor students to complete their higher education and they do not have to return the money we spent on them. But they must promise us that when they were poor, we help them and when they have spare money, they should help other poor students.    

2 Like all investors, we are enjoying making money by holding our Dayang shares and see it goes up slowly and steadily. We do not expect Dayang to go up continuously without minor correction. We won’t cry if it drops a few sen during corrections.  

3 I have been searching for another stock with similar quality as Dayang in vain. I just cannot find one!!! As long as there is oil Petronas will continue to pump because Petronas has already paid for cost of the oil rigs. If you Google, you will know that the cost of 1 oil off shore rig is US$ 650 million. It is like a floating city. 

From Google I found that Malaysia started oil exploration activities in shallow waters in the 1970s and started active extraction and production in the 1980s till today. There are currently over 900 offshore platforms of which almost 600 of them are over 20 years old.

Based on these facts, you can be sure that Dayang will continue to secure more and more oil rig maintenance contracts for many more years to come. 

4 I cannot find another stock that complies with my share selection golden rule of 2 consecutive quarters of increasing profit. Dayang 1st quarter EPS – 0.47 sen, 2 quarter EPS 5.7 sen and 3rd quarter EPS 11.1 sen. It is safe to assume its 4th   quarter EPS is the same as its 3rd quarter of 11.1 sen. Its annual EPS will be 27.5 sen. Assuming it deserves to sell at P/E 12 the minimum price should be Rm 3.30 per share. 

I am very confident its profit for next year will be more than this year because the company has already resolved its financial constrain by its recent right issues. 

5 As you can see the daily volume traded is several million shares. Only institutional investors have so much money to buy and sell. 

If you find another stock with similar profit growth prospect as Dayang, please recommend it to me.  

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