I am not sure whether it is a corporate exercise or funds are nibbling. But we still favour it as our top stock in 2012. However, last quarter result is not as outstanding. We will continue to monitor before we decide to hold more.
Our top picks as of todate: 1)Tomei 2) Oldtown 3) AeonCR 4) Bonia and 5) we added Stemlfe as top collection target in 2012. However, AeonCR has increased substantially from our entrance price of RM 4.50 to RM 6.80 today. We will hold it for now as it is closing to PE 6 – 8 times. We will bring forward another second line top stocks to replace with AeonCR.
Top second line stocks in view: 1) Analabs 2) Favco and 3) Bernas
1) Analabs – Consistent revenue eventhough it has not been expanding upward. But the current NTAB and its EPS put this stock in a tremendous potential target to be privatised. Eventhough it is not in the plan, the dividend yield and its EPS are good enough to further add on.
2) Favco – With its branding in Crane for high rise building. We believe Favco will cotinuous do better as to man kind will continue building high rises across the globe.
3) Bernas – Finally, we agreed to Jim Roger view that argriculture is coming. In Malaysia, if we do not like Palm Oil, the only good choice on hand will be Bernas. Nex 5 years, food shortage will be an issues. Prices will move upwards and it will be good to hedge via company like Bernas. If i dont want to be farmer, atleast i own the stock.