We have added mildly Teledata and we believe the current cost of share is in historical role. We believe in its turn around and as managing cost more effective, this will be a long term good speculation counter.
That is a good one. Really to tell us that a real investor pay less time in monitoring up and down all times. You have to manage the portfolio rather then trade all the times.
By Jim roger:-
When fear permeates a market, everybody sells, especially the last ones in,
frequently have to jump out. They have raised margin requirements for both
silver and gold. So that makes it more and more difficult for people to hold on.
I barely pay attention to the price, but I know a lot of people do and
that is why you have these sudden spikes up and down.
As we did not buy any properties lately due to the recent hike in price and a potential adjustment. However, stock prices of good property developer has fallen and we believe Mah Sing at RM 1.69 is at PE slightly below 10. We believe this fund manager favour will drive the price back when market stable. Eventhough we dont believe in Rehda and the ways the do things.
Apex Healthcare has recently gaining market share in Malaysia pharmaceutical industry. As of the current down turn, its price has adjusted back to RM 2.50 level compare to a high of around RM 3.3, current PE is around 7-8 times and Forecast year around 6-7 times easily.
I like Tom Peters’ theory, if i am not remember wrongly. “Management by walking around” That also a key factor to always give boost to us if we confident to see that Apex’s products have been growing seen in many clinics.
We have done the following swap:-
Ogawa and LTKM –> Affin Bank
Tebrau –> MBSB
Addiitonally acquired UOADev and its call warrant mildly
Unless it is a recession, if PE fall below 5 with sound business model. It represents a 20% return on your investment. Unless something unexpected coming again, we believe the market is overdone.
At the price level of RM 1.250, the PE is almost 3. With government behind the lender. Risk is extremely minimal. We have also added SUNREIT in the morning.
Simply, it is a very good retail REIT in Malaysia.
Lehman is unexpected follwing an unexpected property bubble burst in US that caused Credit issue. Currently, i believe most data is on the table. Unless something is hiding, we should enter into a more stable zone and correcting the overdone soon.
Imagine across the world beside of Eurozone, America, Asia, Middle-East all corrected by 30-50%. It is reaching 2009 credit crisis low and forming a “W”. I think if all make things right, a recession or technically recession is possible. But i still think is a slow down rather then a recession.
For the local front, KLCI at 1360 now is consider expensive if you compare to HSI and STi where you can find plenty of PEs between 2-5 times companies with good business model.
I continue recommend a buy mildly as long as the company has dividend policy more then 3% then has sound business model.
In Malaysia, we likes Affin Bank, POS, MBSB, AEONCR at the moment. Seriously beaten down but the valuation is cheap and sound business model.