BSDREIT privitasation uninteresting for both of its’ price and reason

Boustead announced corporate exercise to privatise BSDREIT via proposed offer to other share holders at RM 1.90 and special dividend of RM 0.20 per share.

The price offered is uninteresting and defeated its purpose for REIT listing at the first place. If shortage of plantation land will affect yield. BSDREIT should exercise on more acquisition rather than privatisation. If REIT’s rule need to pay out more dividend that hinder their new plan. Then I am not sure why are available methods like private placement and right issues that can raise more cash. Worst, they can co-operate with property developer to transform partial of the land use to maximize the land value via township development.

Of course this is our view as minority share holder but we think this is a classic example of good resources but poor management.

We added AUD at RM 2.95

We continue to buy in AUD mildly as we believe long term the currency will do well.

KLCI range bound tracing other markets for direction

Unexciting events locally and also worldwide. KLCI will struggle to look for direction. We expect not too much changes in the market and will trail other markets.

Dow Jones created another record in the week after weeks of correction. We expect China and Hong Kong market will also stabilize with Gold and AUD remained as a good bargain.

We continue to favour agriculture and weather change impact related stocks. Sub sectors like food, energy, water, recycles & etc. We will start forming our 2014 focus portfolio related mainly into these segments.

E.g. Cypark, Analabs, Plabs, BSDREIT, Kawan Food, HHH, Argricultural Bank of China, China Water, Hanegy Solar

New monitor – Ecowise.SP; Union Steel.SP; 英達公路再生科技.HK and 中國金屬再生資源.HK

KLCI will continue range bound to lower with BNM household rising debts curbs

We welcome BNM household debt rising concern and curbs. In fact, we think it should come much early even years back when the issue has been raised. However, we still think the curbs are to mild to stop the problem.

We see temp reaction towards banks and properties counters but limit to very minimal impact. KLCI will continue in range bound between 1760 – 1790 which we think 1800 is not possible at the moment.

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