Undervalued Stock Roaring – Sunway, MNRB, Allianz, RHBcap, Glomac

And counting… Funds are snapping up sound fundamental quality stocks. Sunway crossed RM 2.80, Allianz crossed RM 8.10, Glomac above RM 0.900, RHBCap closed at RM 8.20 & MNRB swiftly moved above RM 2.900. We continue to recommend hold on all these counters. We will sell when it’s become expensive and yield becomes lowered.

For our top picks in 2013, Sunway and Allianz have done well. Affin and Alaqar are still at attractive level that we recommend a buy call. Whereas Lay Hong has disappointed losing quarter but we still firm on its revenue increase will bring good news soon. If continuous losing quarter we will recommend a next action plan.

Most undervalued mid to large cap have done well in the first two months. We expect some small caps will pick up soon. Again we only like quality companies as our portfolio except specified speculative counters.

Our top holding of small cap are still Cheetah, Tomei, Poh Kong, FocusP, Stemlfe and Innity.

Our top REITs holdings are ARREIT, Alaqar Healthcare REIT, TWREIT, STAREIT, AMFIRST. But we do invested all REITs since its inception. We still like REITS that have yields that above 7% and we will add more.

Dow continues 3 days record high at 14,335

Dow continuous broken new records for last 3 days. Low interest rate worldwide, improving data but debts issue remained. Money continuous become smaller as even Buffett commented on CNBC that even though market is at record, money is virtually no return if not invest in equities. He also commented that interest rate will increase eventually and cause all assets values decrease. But he is confident that situation eventually will readjusted and back to universal inflation rule.

On the other hand, Jim Roger continuous believed that the market is subject to a big correction as the fundamental debts problems are not change. He does believe interest rate will eventually increase.

That means low interest rate environment will disappear but we don’t know when.

Our stand is continuous defensively stay invested by selling over price assets and switching to undervalue assets with fundamentals as first concern. Continuous reduce all loans and preparing fund for a potential big correction underway. Our portfolio will fine tune the formula that will stay invested and taking opportunity when market correct.

KLCI will trend lower due to Sulu case

We do not believe in any significant impact on recent Sulu case. However, market does not like uncertainty and we believe many will side line to wait and see further development. Thus we believe FBM KLCI will drift lower in coming week.

We do not intend to make detail comment but we feel that Sulu militant armed and entered into our country is something that cannot be accepted. No matter there is a case or no case on claim of Sabah. There is no right to challenge a country with invasion and killed enforcers that have families too.

We send our condolence to our officers that sacrificed for country safety. Rest in peace and Malaysian will remember and have one united voice on this incident.

Update: we will buy into the market if drop due to Sulu case as support.

Sold off Bernas and IHH as reportfolio

As Bernas being takeover offer price increased to RM 3.70. We think is a better price than first offer. Even though we like agriculture and Bernas being one of the only attractive counter in KLSE. However, we don’t like the attempt to be taken private too desperate. So we decided sold all.

IHH in other hand PE is too high with too low yield even they are in a very promising industry. We sold all at RM 3.470 and exchanged into Affin, TWREIT, Lay Hong, Hap Seng and Alaqar.

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