Again we feel that PE 22 times are over price at the moment for KPJ. Eventhough KLCI slow down but 2nd liners very solid.

Besides, we have also sold off two (2) PB Mutual funds to further consolidate our positions.

Reason to reduce KPJ Healthcare – PE has reached record high, above PE 20 is not our cup of tea. For BJcorp – The renew exercise via loan stocks and free warrants does not look attractive with its 12 months performance. Thus we reduced our positions.

But we switched to Oldtown, DKSH, Masteel, Alaqar, PavREIT and KHIND.

At the current price level, we believe KLCI is not at fair value. As the prelude of potential election, sentiment remained at upward bias. Our strategy is to dispose speculative and economy sensitive company to more undervalue stocks or cash. In general, we try not doing anything and wait for opportunity.

We have speculated a come back of the share but the final proposal seems very much on raising funds and injected to a new unknown business. Although we can wait and may still can recover or even profit from it. Our cost is around RM 0.06 and we will take a small loss and walk away.

Our Teledata share has reached 0.018 which gives us market value of SGD 18 x 20 then x 2.45 = RM 882 + RM 450 = RM 1,332.00. We will still hold Teledata for sometimes and expecting right issue to bring down our cost to SGD 0.0077. Expecting next 3 months price crossing SGD 0.023 for a first 200% return.

Mean time, our another speculative monitor Bingo has crossed back HKD 0.115. We recommend hold for both counters.

Not in term of value but in term of counters hold and be more defensive.

SKPRes reflects its full valuation above RM 0.400 and Maybulk sharp increased in price prompted us to unload our position.

Across years, the most important rock block to being a good investor will be yourself. Ego is the most easy to develop problem that hinder you from understanding the factors that define a good investment. Investment is not rocket size nor physicist’s theories. In fact, it can be as easy as 123. It is true that there is suppose no rich or poor gap on earth. It is because of environment, culture, experience that develop one’s character that include ego.

Starting Jan 2012, we start to see mild changes with volume increases on average. This could be the mark of 1st level price rebound target around SGD 0.02 indicating our first 200% return if you enter at SGD 0.007. If right issue out at 0.005, that will be significant profit if it’s business turn around.