Mixed results annouced mostly flat to lower than expectation

Most results announced are slightly below our expectation. That can be many reasons however as long as revenue remain in growth, we are still holding on it. MNRB and Kawan reported lower to flat profits. Allianze and Whorse registered better results. Some smallcaps start to catch our attention including Hovid, Power Root and London Biscuit. But we will further monitor its performance before we start holding a position. On the other hand, Maybank continue registered healthy growth but mainly contributed by operation from Indonesia. We are not quite optimistic and we believe more bargain will be ahead for us. We will stay invested but buying slow.

MREITS are adjusting downward in expect higher interest rate trend from now

We discovered lately MREITS are adjusting downward and increase selling across the board even with better result.

Part of the reason we believe is expectation of world interest trend changes upward.   Further more also reducing REITS profit at loan cost.  Foreign funds also continue selling for better yield.

But we think this is an opportunity and we added especially YTLREIT that has a better profile on portfolio hedging against RM weakness if any.  We added YTLREIT again at RM 0.910.

Results review – Bonia, Success, FocusP and Tomei

Bonia has improved it’s result to bring the current traded price merely 10 times of its earnings.  If another 2 to 3 quarters consistent result will provoke us review upward of our target price.

Success continuous deliver stable result and current traded price is way below it’s fair value and it’s NTA.  We continue recommend but only dip slowly with target price above RM 2.00.

Tomei registered small loss and we understand a tremendous fluctuating gold price.  However revenue flat and with NTA still way above current traded price.  We recommend a hold.

FocusP flat result and revenue.  However able to maintain dividend yield of more than  5%.  We will hold further and see if it can transform itself further.

Teledata has missed our estimated time for price movement

Initially we speculate that the recovery will start in Jan 2014 as the dateline to pull itself from watch list is in March 2014. However now is extended to June 2014 and not much catalyst activity lately.

However, at the price of SGD 0.010 traded and it is even lower than its placement price. We decided to add little further into our portfolio at this price.

KLCI will drift range bound as profits announced have mixed pictures

We believe KLCI will drift range bound as components stocks announced mixed pictures until now. We will need to see more results to define the direction of KLCI. As there is no catalyst at the moment and we believe more focus will be into small to midcap stocks. Driven by individual result of the quarter or speculative rumours.

Whatapps worth USD 19 billion that local investors will never understand

It is completely a different approach. If it is in Asia or Malaysia. Any merchant bankers or Venture capitalist will say Whatapps is not profitable. How on earth people will spend USD 19 billions for it. May be Facebook will understand what do you mean by good will business when they started. I am not saying we are completely wrong over here. But if one day our platform is not ready for such a change of mind set about good will business. We will not have anything like this to be created.

In fact unlike China which is learning very quick. From Lenova to Weibo, from wee chat to QQ. Everything is learning quick and fast driven by its own huge populated market. A chance is definitely required to drive technology invention locally. First, it must be investor themselves.

MAS continue its losses – I will not even look into it as contra buy!

It is not a year, it has been many years. Many rounds of right issues. Many rounds of management change. Selling and buying planes. Propose buying again. Tony said it is because of the industry and policies. I will tell him is the mind set and culture. Beside of utilities and O&G are exception and we all know why. I will stay away from this counter of I should say this group of counters.

We added Lippomalls, Unionsteel, YTLREIT, Gold and AUD

RE-investing adding things that are cheap in the market. We added slightly Lippomalls at SGD 0.405, Unionsteel SGD 0.116, YTLREIT at RM 0.985, Gold and AUD. We like to buy value during market fluctuation and giving edge of cheaper asset. Financial market is like the Earth rotating day and night. You will find value during different seasons of a year. That’s financial climate.

The last Jewel in town – MNRB

If we are smart enough, we will continue to buy more. We are confidence MNRB will attract investor very soon. We like its business model in Malaysia and its growth potential. I will continue to nibbling as our major target now. We think it should worth RM 8.00 and above.

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