If Jim is correct, the next move in the world market is waiting for a disaster crisis ahead. Personally, I am not too sure it will have happened that fast. But I agreed that he has a point. So a cycle investment with diversification into asset related is important. First, the best way is to reduce any debts so that you are able to buy cheap asset when it happen.
We continue to mildly bought in:-
Gadang at RM 0.780
Multico at RM 1.500
PLABS at RM 0.140
PAVREIT at RM 1.210
Agricultural Bank of China at HKD 3.280
Tropicana – improved yoy revenue but flat profit. Still a hold with RM 2.50 target. Current price is getting cheaper for higher ROI.
Allianz – Strong consistent revenue increased with slight profit increased. We continue recommend a hold with a target price still at RM 12.
FocusP – Flat results and struggling to break for a better or worst line. Single tier 1 cent declared and on target for better than 3% yield if entrance at RM 0.280.
Plabs – Improved revenue but lowered profit. Average 2 quarters profit with satisfying revenue. It will be better if most company can control cost while improving revenue. For now, we are ok with the result.
OCK – Flat revenue and lowered profit. Recent placement caused price hike but not looking justify at the moment.
We think the sell off is over done. However, market weakness will further prevail but we still think KLCI will stage technical rebound together with RM. it is a good buy opportunity but need not to be fully buy in. We recommend a first stage bargain hunting that is 20% of your emergency fund.
We like Kawan and Multico. For bluechip we like RHBCap.
We have done some bargain hunting activities for Kawan, Kawan-WA, Multico, Success, Uli, Qcap.
We started to hold Lippomalls SG as our foreign REIT target in the next few month. As we like its yield for more than 8% and strategically holding retail shopping malls in Indonesia.
All companies above under our portfolios delivered 5-10% growth on both revenue and profit. Favco, UMS and Stemlfe however made flat result. Good sign of one of our top holding Layhong is returning to profit
We will reward the above result by further buying in mildly Kawan, Uli and Success in the next few days.
Foreign funds sold a total of net RM 4.96 Bil ended 23rd Aug over 4 weeks. I am not quite worry as this is just a regional sentiment and movement. Of course, our country have structural issues to be solved in long term but this time round is a good correction.
RM depreciated close to 7-8% over USD. That makes good excuse for short term hot funds to exit the market. A deep of KLCI below 1700 without too huge of a fundamental change present a good buy opportunity. As of now, there are some bargains outside although not on big sales.
We definitely like RHBcap at RM 7.280
We believe the Asean selloff will temp lose momentum. Markets should reducing its losses. RM should stabilize and technical rebound this week.
Indonesia, Thailand and Malaysia were beaten down in the week with the reason of Fed policy on bond buying. In fact, I do not see the direct link of this theory of “scares”.
RM crashed over major currency especially Dollar. from below RM 3.1 to now RM 3.3. If months ago is even below RM 3.0. RM has almost a 10% beaten down lately.
Equities wise. KLCI fall almost 60 points weekly and Indonesia at one time around 20% accumulated loss. All on credit rating, currencies, misses GDP figures & etc.
Market will be week and may try 1700 support level. But the severity and fluctuation will reduce in this week. However, we do no believe this is a crisis. We think is good chance to pick up bargain slowly. As we don’t know when is this round ending of correction. So we again buy stocks in stages.