Why XingQuan and BSDREIT?

Here's my explanaton:

1) XingQuan - Exposure to rising Chinese market. A big discount to IPO price. Chinese New Year is approaching. Compared to MSPORT, the revenue is lower but the EPS is much higher (6 cents vs 0.12 cents). Although the profit and revenue are similar between MSPORT and XingQuan, the EPS is 50 times difference! MSPORT is way too diluted. The IPO issues too many shares. It's a very big problem for MSPORT.

My target price is around RM1.40. If there is no accidental event, I hope I can sell at around this price. I'm also thinking of increasing my exposure to this stock at current price of RM1.20, but something held me behind. It's the lack of track record for this share. Usually people don't dump all their money into a new IPO.

The coming announcement of dividend will send this stock upward. But by how much, nobody knows. It also depends on the dividend amount. If it declares a 2.5 cents dividend, it will surge also around 2-3 cents after the announcement. We'll see.

2) BSDREIT - This is a very defensive stock to hold. The purpose is just the dividend, dividend and dividend. Nothing else. Since the payout announcement is coming soon (most likely in January). I'll see if it's worth to keep. Compared to STAREIT, the earnings report looks a lot prettier. The EPS is 9.66, Unlike STAREIT, the EPS until September 2009 is merely 1.74 cents. This kind of earnings (STAREIT) can send many people to heart attack ward.

Here are my reasons for owing XingQuan and BSDREIT. As for Citigroup, it's just a long term investment. After TARP repayment (although it is on hold at this moment), it's like a "re-IPO" at US$3.15. Just treat it as a new bank and you'll like it for the long term. John Paulson and Jim Cramer like it. I plan to keep it for 5-8 years. When the housing loan sector starts to recover, Citi should be quite benefited from it. Although the CEO doesn't make much sense most of the time, he won't stay in the position forever. Just treat as a IPO, you'll like it.

Plus, compared to BAC, C has more international exposure where housing bubble is nearly non-existent. I'm not sure about Malaysia, although it looks like there is one, it's still better than Hong Kong. By comparison, Penang island look quite similar to Singapore and Hong Kong due to its limited land. Anyway, there goes all my explanations.

Coming soon: Shares that I like to own beside these: BJTOTO-CF, MPHB, FAJAR, Pelikan, INSAS, and SUNCITY. I'll state my reasons and post if I bought any of those. I've used 5k of my fund, still RM25k to go.