US-China trade war can be a trigger point for a disaster

Personally i always think a trade deal is possible unless it is too demanding between the two.  There is still a high chance of 80% the deal i feel that will go through during the G20 summit in Japan.  However, a slight chance of 20% will trigger a long waited worldwide recession.  I am not in favor to bet any of the direction as the risk to trigger a super boom is there.  Thus, we will switched to highly defensive from now.  Reducing borrowings and debts will be priority and bring down ratio of debt below 0.5 times.

In summary we will not do anything except reducing debt ratio from now possibly until a better picture emerge.

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MBSB to hold from buy as reduced profits and slow to increase revenue

We are a little disappointed to its cause of reduce profit due to again some loan credit losses. They should have improved their risk assessment before issuing loan.

Plan to increase revenue also slower than expected though we do see their progress by technology centric lately.

We will not increase our investment as of now until constructive improvement seen. But we do still have confidence in its strategy and plan for mid to long term. We like the 5 cents yield as it is fair to investor and it is still better than FD and some REITS in the market.

We sold some WCT and Gadang during recent run up

We have sold some we have bought with average cost of RM 0.8 and RM 0.6. We have reinvested our profit to SUNREIT. Whereas the original capital into GENM and MBSB.

In every moment there is always an great value stock to invest. As of of today we like GENM the most.

MBSB with a 5% yield as of current price

Though it has not increased its price to our min target of RM 1.5. But we are satisfied with its yield of 5 cents. With a 5% return and still a strong potential to grow beyond RM 1.5. We still think is a bargain to buy.

Paxtonz @ Empire City a good price during recovery

As the development of Empire City hit some issues. Exism entrance given a good price entry compare years back. We like this stupid project Paxtonz and we believe there are plenty of upside and the demand of studio for professional due to offices there is great. We are not holding a flag in this area.

MBSB declared 5 cents dividend – still strong buy call target RM 1.5 above

Except Malaysia is going to be a recession. If not, the potential of growth in revenue will be positive. Even though is mild growth. With a stable 5 cents declared and can be even higher. The current price represent above 5% yield with strong capital gain potential. I am not looking at 100 or 200% but I think is a safe counter that you can increase your bet.

5G + Bandar Malaysia = absolute advantage over property market

5G has Pros and Cons. If the pipe is allow to promote working remotely without boundary. If Bandar Malaysia can take off smoothly. I believe more regional offices may opt to reside in KL than Hong Kong and Singapore. Both may still grow into different segment but Malaysia will get some traction. Is a positive factor towards property development market locally as our price is far away comparing to peers.

We added CIMB at RM 5.16

We thought it is cheap now and we added some again into our portfolio. Even if you factor a 25 basis point interest rate decrease. With also projecting loan growth of 5 to 10%. The likely result is lower grow in revenue and margin. But now below PE of 10 times. ROE will easily surpass 20 to 30% total gain. I think it is a good buy from now.

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