TM: Limited upside from now onwards

FBM KLCI ended 3.84 points higher today to 1572.21 points, registering 5th day straight gains. On a weekly basis, FBM KLCI surged 53.3 points or 3.51% to 1572.21.

My view:
We have really reached the uncharted territory. Logically, one couldn't stop thinking about what stocks to take profit out of the share market for some shares. Out of the stocks that I am looking at, here's one stock in which I think is ripe for profit taking:

Telekom Malaysia
In my blog with title TM:Special Dividend Coming? dated 3-Dec-2010, I have mentioned of the possibility of TM distributing special dividend. From the share price increase, it seems likely that TM may do so soon. However, I would prefer to take profit first due to: i) Average analyst target price for TM is RM3.53, 20 sen below today close of RM3.73, ii) assume dividend of 20 sen annually, the share price increase have pushed the dividend yield to 5.4% from around 5.8% previously, iii) assume TM pay out all the proceeds from Axiata stake sale and Measat, the special dividend should less than 30 sen which is already reflected in the price increase.