It is a problem Asia is facing. But Malaysia will be even more impacted. As subsidies from government caused big price mis-conception for services and goods for decades. Once gradual removal started will see market re-adjust itself. We believe current tight and continuous increase in man power cost will eventually hinder the growth at both country and company level. We cannot continuous rely on infrastructure growth and petrol money forever. Worst, productivity that should be increased are seldom measure.
Probably another opportunity for politicians and traders making money as many have short the market already?!
US is not able to balance its budget since the debt ceiling issue started years ago. It will be continue for years to come. Fundamentally, US should be bankrupt long time ago. But due to the impact if really so, the whole world will be in serious chaos.
So everyone know what will happen and continue to make sure it will not happen. Again the scenarios are 1) it is not going to happen so not to worry. 2) it is going to be a long term shut down, whole world is into trouble so there is no worry also as everyone facing the same problem.
As long as you have got your debt ratio manage well. Bias your portfolio to asset oriented with gold as reserve. Any big problem will probably another big opportunity for you to leap frog. So for now, someone is going to make money from shorting the markets.
If you were to ask me, I will say please shut down everything even the odds say no.
With last quarter lowered profit at RM 4.51 cents per quarter is around 13 times PE. But it may due to change of accounting practice has to adjust some profit and revenue have to be realized earlier.
However, positive Perodua 7 years contract announced giving us confidence for a better long term result. RM 90 announced as dividend together with previous dividend represent more than 6% total payout per year.
We continue recommend a hold of the counter.
We categorize Analabs as one of our climate change related portfolio. With the 10% revenue increase, profit almost doubled to 7 cents and NTA above RM 2.900. We have a mid term target of Analabs continuos above RM 3.00.
As the year is closing to an end, we continuos switching counters to high yield and more bias to agricultural, climate change and asset oriented portfolio. We sold off Oriental Watch at HKD 2.640 with slight profit and switched all to Agricultural Bank of China at HKD 3.680.
Honestly, Censof does not fit into our normal strategy of stock pick. However, the recent Saga of Time Engineering awarded below market price have boosted speculative play. The stock in fact already look expensive after bonus issued and not so outstanding performance. Thus, we will only suggest a short term buy at RM 0.515
We continue to mildly dispose Stemlfe thought we like it as a company to invest. However, our principal of PE above 20 times trigger our holding. The new shareholder Cordlife may bring new stream into the company. But that’s no our style of investment to speculate future earnings.
We switched all proceeds to TWREIT at RM 1.530 as defensively stay invested strategy. Bias to asset, agriculture and climate change portfolio.
We decided to reap the profit and moving to our new focus next year. Climate and agriculture related portfolio. We continue to switch to Analabs, Cyparks and Plabs. Besides, also building more stable fund via Towereit.
We sold another batch of Stemlfe at RM 0.420, OCK at RM 0.710 and switched to Analabs, Cypark, Plabs and Twreit.
We also continue reduce Gpacket at RM 0.460 to reduce our risk in long term hold until their asset being sold.
As I always clearly stated I have full support of any elected government to help the poor in the country especially the bumiputra. However, after many years of such policy. The hardcore poor is still there and you got to question its existence.
If there are 100 people are classified as poor. Of the 100 people if over 60% are bumiputra. Remaining 20% are Chinese and 10% are Indians. Isn’t a policy that help the poor already help the majority of the bumiputra?
In another equation, if the 68% bumiputra only hold 40% of equity stakes. Increasing it to 68% does it equal to all 68% distributed equally to 100% bumiputra? The question is the same that if 60% equity hold by Chinese and Indian. Does all 60% hold by all Chinese and Indian are equal? Or the rule of capitalism ruled that only 20% of population controlled 80% of the total assets? Again, the elite of may be 1% hold almost 99% of the total wealth of the country?
Only when mathematics is to be used. Malaysia should deserve to be in a better position.