We will start looking into Lay Hong as long term hold

As we have always mentioned we believe Jim Rogers’ theory that agriculture will be the next wave. A simple reason he mentioned about the farmer aging. Less and less peole is working in the farm together with severe weather condition increasing. We should see upward price pressure even economy is not good.

We selected Bernas 6 months back and has bought in price range from RM 2.70 – RM 2.90. Today its price reached average of RM 3.40 ex-dividend. We have been looking around the whole KLCI excluding Oil Palm that we think the PE is too high for all Palm related company no matter young tree or old tree.

Lay Hoong, after 2 years of holding some stocks and its performance still in Z mode. Means sometimes good and sometimes bad. But overall, we do like its branding and its balance sheet. Our risk factor remain is bird flu. Otherwise, we should see continuous increase in revenue will one day cross the inflating cost of business. Given the situation is like this now, it is good time to slowly accumulate.