NEW TARGET - P&O

I am wonder what is the bursa theme for next year. So I typed "top pick in klse 2012" and there is not much search result as 2012 not come yet and no one bother to write for 2012.

So I think I have to speculate myself or do my prediction myself. With some research and reading, I make a guess for general insurance related share - which mean all the listed company that have motor insurance business.

Why I make this prediction because there is an increase of motor insurance premium which is approved by Bank Negara Malaysia. Since motor insurance was not revise for more than 30 years. The motor insurance premium will be adjust from 2012 to 2015.

Here is the link that I get info to support my prediction and speculation http://www.bnm.gov.my/index.php?ch=8&pg=14&ac=2220
http://www.thesundaily.my/news/local/higher-premiums-motor-insurance


And why I choose P&O because P&O paid very good dividen. If you purchased 1000 P&O share at cost of RM800 and you will entitled RM 56 for dividen. That mean the interest of P&O share is definitely higher than bank's fix deposit which is at 3% per annum - that mean you only get RM30 if you save RM1000 in fix deposit.

Secondly, P&O has largest market share of motorcycle general insurance.

Thirdly all the small and medium motor insurance company will become merge and aquisition target by big player or international player of motor insurance - P&O will also become one of the target.

Fourthly, P&O also has very low PE ratio.

Below is the link to show Kenanga Research House that commend on P&O

http://www.pacific-orient.com/poi/News/Kenanga_Research-P&O.pdf

I also make a guess for Kurnia Asia and MAA as these two share also consists of motor insurance. LPI also fall under this category but the share price is a bit high.

Just think about it! This blog is not advising nor teaching nor asking you to purchase any share but just to share some point of view and speculation and prediction of share market. Please take your own risk and excess your risk taking ability before investing in share market.

Oppurtunity = Preparation + Timing