We will continue monitor our position in Citi. As of today market cap, Citi PE is reasonable and we still always like its brand value. We maintain our hold on Citi. Our cost of Citi below USD 25 still make us a comfortable margin. A dip below USD 35 is always our trigger point of continuous accumalation.
We have been following this stock since it is at level of HKD 8 and above for sometimes. This stock has a great foreign fund support and its solid fundamental. Due to CSI index beaten down as Chinese government is doing a series of monetary policy to contain inflation. Chadoa (In English) has been also beaten down to HKD 4-5 level.
But thats not hurt, rumour that Chadoa has over reported its argriculture land by a Hong Kong media prove to be destructive. Though Chadoa denied with a possible legal action. The price has been further tumbled to HKD 2.8-2.9 level as of todate. We entered the stck at level of HKD 4.80, HKD 3.60 and HK 3.00 and will still adding this equity. But we are not alone, all major international funds also increasing their hold on this counter.
Weak HKD giving a good opportunity to enter this share and we believe the return is huge when market stabilized. We cannot use regional PE peers to calculae its reasonable price but we do believe target price of HKD 4-5 is an easy step. That giving minimum return of 30% for the next 12 months.
We still believe food is getting less in supply worldwide, a buy call and we will add in anytime from now further for our portfolio.
Added STAREIT, KLCCP, AEONCR as dividend play. Also added Innity and Handal on beaten down speculative play.
I am one of the fan of Jim where i do pay close attention to his philosophy in world economics beside of Buffett. Week ago, Jim said “Whatever you call, a cupcake? that will be a QE3 coming.” The huge inflation across Asia and the world pushed up by a weak dollar is a long term strategy of US. A simple understand that a weak dollar will increase competitive advantage atleast minimize the gap of manufacturing’s cost compare to China, India, Indonesia, Vietnam and etc. One of the key problem that you can always rely on imports as it is not going to balance your account. That is also withness by many times US keep pushing China to revalue their currency.
Looks like, QE3 is coming, as suggested not to call QE3 but this will tell us that US economy is indeed not out of the dark yet. Any further action will prompt that currency value is devaluating by itself. Thus, whatever you buy, as long as you dont keep cash. Bluchip equities, Commodities (Gold & Silver), Properties are all trend north. Thus, you really need a return which is 8-10% minimum as the inflation plus devaluation of currency will eat you capital in anything below 5% return.
We still buying gold consistently every month as we are not a good timer for the chart. We believe this will give is a good time to buy in average price of Gold as one of the strong hedging tool for us in our portfolio. Silver? We dont have the size to enter into that kind of futures yet. But we will consider if there is any available tool.
Whenever we find value, we will add on.
Oldtown at the current PE of RM 1.33 is around PE 11 times. We like it is because of its branding and its plan to penetrate into the China market. In Malaysia alone, it is a day to day life chain. Though not offer the best food but averagely welcome by most.
We like Deleum because of its consistency of dividend and earning growth.
Holding minimum to start tracking these both company.
During this worldwide pull back, it is a good time to increase some of our holding that run above our enterance price before we intend to add more. 麗新發展 is a highly undervalued stock that suit our favour.
Cheetah price maintained around RM 0.480 but Innity emerged some sell vol at RM 0.125. We have added more to our portfolio.