Simply lackluster, we just staying sideline

Quality stocks moving south. Speculative stocks rotational up and down. A market out of fundamental investment trend. That’s forced us to become a net seller for the past six months.

What are we going to do now? Yes there is value in the market. But we will not feel hesitate to sell down any speculative play on our holding.

We still keep MBSB, CIMB, Maybank, RHB Bank and lately we are into essential like Tenaga and Topgloves below RM 4. Overall, we did pick some long term warrants mainly Jaks.

We did buy very little Focus-PA and Focus-Warrant as we found nothing can lower. Given the speculative culture, we should have a big probability to unload it.

Overall, we are a net seller as of now.

We turned slightly cautious due to Extended Covid 19 issue

The vaccination progress isn’t go with the plan. With evidence of mutation in India perhaps can be even elsewhere. This is going to be a prolong problem for a very long time.

The previous hypothesis of recovery is no longer in our favour. Thus, we turned cautious with the strategy of reduce debt, slow down new investment, turning more unproductive portfolio to essential like Tenaga, TM, Maybank, Alaqar REIT. Though Nestle and Dutch Lady are good choice but the PE is too high to be investable. Perhaps, Topgloves can be a good bet together even with Bursa.

We are disappointed with the information given by world government leaders and pharmaceutical Company on vaccines. With the current rate, there is no way that herd can be achieved in 2021.

Rotational play but only if you understand it risk

A range of rotational play lately in the market. Lately burning into ICT related counters. However, only if you calculated the risk and you are comfortable with it. If not, go for recovery stock in retail, tourism, mall, airlines to catch the wave. Personally I think banks are inevitable coming back strong soon.

The Bull is in March

If based on world vaccination program and the infected rate possibly creates natural antibodies. I think by next month or most April herd will be achieved starting even US. Hold you stock in Feb and only consider dispose in March.

All markets heading better Q1

Bitcoins spike to 20K and Oil price rebound with world market keep advancing gradually. The V or U are in the race but one thing for sure money is getting smaller and market will go further.

We have also started to be more aggressive by investing some Call Warrants. We bought MBSB C32, CIMB C69, Inari C67, Layhong WA and DRB C10

We sold some Hengyuen and PetroM

Recovery of oil prices and a sudden run up. We have sold some of them in lately. But we think the speculative sentiment will drive price further as Biden is good to oil price in short term.

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