MREITs – Overall capital increased and we favour right issue only now

Since most MREITs prices increased due to continuous revaluation, however, rental is not catching in pace. But we understand as continous renew rental is not just bad for long term but also for overall economy.

At this moment, Amfirst and Hektar will be good as both submitted Right Issues application and we believe it will have substantial lowered price compare to market price. Thus, we are savings dividend return and re-invest into right issue.

We will still continue collect PavREIT until minimum holding units that we desire but we got to settle the yield below 6%. Yet, we will only will buy in if below RM 1.080 or lower.

Apple profit doubles, we maintain short at USD 400

The recent profits shown is not un-expected as many buy iPhone 4S may have added effect on sentimental values of Steve Jobs. There is a huge risk that the current cash position of the company and it’s PE representing 8-9 times. We may be wrong, but we maintain that Apple may have reached its peak and the success factors of jobs will definitely be different.

Why only sell Proton at RM 5.50?

With the NTAB of RM 9.80 plus sometimes making loss due to Lotus and cost issue.  Sell Lotus, change management and cautiously control cost.  I will rate Proton at RM 12.00 above.

Selling at RM 5.50 is like giving another RM 1.3 billions wealth to DRM-HICOM.

A classic example of the rich getting richer and limitation on capitalism.

We bought SKPres and LBS for short term speculative play

The recently unusual volume of LBS and SKPres together with its corporate related news. We believe a short term rally is already on the card. However, as to 2012, we will only buy counters with speculative play together with fundamental screen. Both counters are healthy as of 2011 with good EPS.

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