We continue to buy in AUD mildly as we believe long term the currency will do well.
We decided not to subscribe to the right issue and proceed with our selling at RM 1.520. We have switched to Multico, Kawan-WR, Kawan, QCapital and Plabs.
Working out to be USD 5.00 per annual for EPS. Giving a 15 times industry average as PE benchmark. We raised Citi target to USD 80. We continue to hold Citi as of the current moment.
We will start to cover more on this counter as one of our monitor target for environment related stocks.
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
We bought Hopson Development HK at HKD 8.070. Teledata and SaizenREIT Singapore at SGD 0.014 and 0.188. We also added RHBCap at RM 8.420, Cypark RM 2.060, IGBREIT at RM 1.320 and Trop at RM 1.910
We think Favco valuation still attractive. However, it has up from our price invested too far below RM 2.00. Thus, we decided to sold partially and move into Kawan Food and BSDREIT.
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.
Jim has bought some stocks mentioned in his blog. He also pointed out that Malaysia is a quality place to invest. Except the policy need to change and make it better.
It is true that personally I feel that Malaysia is a good country to me. If politicians just a little more sensible in their policy making decision.
We bought Kawan food at RM 0.945 and AUD at below RM 2.900 vs AUD 1. We like the value now in both Kawan Food and AUD.