As the EPS continue to outshine others plus its growing result in this economy. We believe the EPS will further increase when thing getting back in 2013. It is very hard estimate how high it will go. But we believe min we think 1 time book ratio of RM 11.00 still a reasonable price.

Base on RM 1.25 the yield suggested around 5.1%. We believe is not too attractive but comparing to peer like SunREIT and PavRET. We believe there is room to increase around RM 1.40 above with a yield around 4.5%. 12 months target RM 1.50

Portfolio update – Even though Padini entering into Indonesia representing a good prospect.  But with the current valuation of PE more than 20 times, we will continue to sell down slowly.

Result announced is inline with our expectation but can be better. However, we do not like the acquisition based on the profit guarantee is too far from the profit records of the target company. We believe it may be more then just normal acquisition but washing down some major share holder shares and change controlling structure.

However, we still believe it will reach RM 0.600 before ex-date. Not due to any contingency but more on our experience. We stay at what we holding now.

The recent JV for Indonesia activity is definitely a good idea. However, with PE of 20 times, it is out of our investment favour. We still holding 60% of our purchases before we start selling when it reaches RM 2.10

We will monitor further on the cost control but we feel that revenue has increased over 30% and that is still a good sign as good price has down to USD 1,600 level.

With 8.22 EPS till quarter 2 on hand, we still believe Tomei can get through RM 0.10 EPS for whole financial year. Still it representing 6-7 time price ratio if based on RM 0.730. I am not sure why they is seller.

Teledata SGD 0.011
Tomei RM 0.780

Once again, yes it is may be true that there is chance that you can sell higher if rumour is true. But if you base on discipline, you will find that 8/10 times you will be profitable if you sell on sudden price increase. As it is always it is — stock market is driven by rumours.  Driven by fundamental, you will be sitting away from profit.  As Buffett always emphasized, only discipline make you richer.  It is not rocket science to invest in stock.

We added Tomei, Ascott REIT and Teledata

To recope part of our investment from Padini, we have sold 15% of our holding. As we have reaped more than 1 times gain. We have switched to Tomei, Success (Re-entered) and SCOMI (Restructuring speculative bet)