As AUD and Gold slip, we continue adding on

Weakness in Australia economy and world central banks in continuous supporting easing policies. Gold short term face tremendous pressure. Partly Indian policy on Gold as one of the factor. But we continue to like Gold buying mildly. We buying AUD gradually as well.

We continue recommend buy on Kawan and Success on their recent results

Q4 2013 announced results for both companies given a our adjusted fair value to easily above RM 2.00 base on PE valuation from 13-15 times.

Kawan announced profit of RM 3.57 cents and Success profit of RM 7.40 cents.

Green Packet is at alert level!

If the sales of P1 still not able to complete before end of 2013. We believe revenue reducing plus continue substantial losses are not looking good if pro-longed.

Either P1 should float its shares to finance a bigger expansion or it must sell at lower valuation to ensure they are not going into a non return road.

We will not re-enter Gpacket if not below RM 0.450 by now. We afraid it may have a good chance to fall below RM 0.400. Unless given any corporate development we are not aware and we advise patient by now.

Visiting Japan trigger rethink of investment strategy

Since the bubble pop in Japan during early 90’s until now.   Japan has never been able to workout a high grow strategy. However, visiting Japan allows me to see a strong culture in the country that I will be surprised why it isn’t grow anymore. Could it be the people? Politics? Policies? Or there is a peak in every economy growth in relation to its population and size.  There is a question pop up from my mine.   What if our natural resources finished or world economy crashed with no demand from natural resources.   Is our culture, politics and policies able to drive growth?  Perhaps a strong question that need everyone to consider.

KLCI may trade higher on Local GDP figure and Yellen but we are not over optimistic

We think market will react upward and year end window dressing activities may join in to push KLCI above 1,800. Together with Yellen remarks and local Malaysia GDP at 5% above expectation forecasted to be 4.8%.

1st we think KLCI is expensive as only midcap or small cap are more in value. 2nd Both data is not critical enough to push record high market to further record easily. 3rd Local social and political issues prevail will hinder the positive growth of the financial system.

We will stay probably not so active with our continuous strategies maintain.

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