MREITs up on defensive play

We have seen many MREITS up in the last few weeks.  We believe is more like a defensive play by funds.  Qcapita, UOAREIT, IGBREIT, TWREIT, ARREIT all staged close to 10% gain.  Of course another reason can be the standard dividend payoff in February each year. 

However, most are trading far from its NTAB.  An example like TWREIT which disposed one of the building lately.  Pushing it’s NTAB to above RM 1.90.  However due to low yield and unexciting market sentiment.  It is not at RM 1.30.

We believe MREITs are less attractive in term of yield.  However there are  certain MREITs trading massively big gap between market price and their NTAB worth taking note.  We will buy in small amount targeting these MREITs in the next few month.

BNM should have intervened on RM weakness

We are somehow not fully floating the RM yet.  Any country should have a stable fluctuate currency range.  Even though our fundamental remain strong and prudent.  BNM should have intervened RM range of fluctuation.  When it has reach 10% level from RM 3.00 to 3.30. 

I always have an impression that BNM is trying to ensure a soft RM maintain our manafucaturing competitiveness.  They will deny but I think they are not doing a good job when during with crisis.

They have plenty of chances when RM at 15% depreciation level.  Now it is at RM 3.60 vs USD and looking to further towards RM 3.70.

ECB €60 Billions Bond Buying – QE 4.0

A massive bond buying monthly until September 2016. ECB aims inflation at 2%.   I think a global crash will be further away.  Money is going to be devalued further. 

We do not know what will happen next.  But QE 1, 2, 3 from FED effectively revive economy.  Paper money value continue to depreciate.  We think anyone should buy asset, commodities or even asset class commodities.

Gold, real estate, REITS, blue chips equities are definitely better than cash.

We like Innity as game changer

We are not sure when the local market will fully transform. It is a matter of time that online ads company like Innity will make a stand.  Recent Yahoo reselling contract for the whole Asean will drive it’s EPS further.  We will continue nibbling if the price is right.

Oil price will recover to above USD 80

There are many speculative reasons behind the oil price tumbled.  However, a clear sign that why demand is not cut even if price keep dropping only indicate artificial intension is at the upper hand.

If there is one thing I can buy compare to currency.  I will buy oil at the current level.  Oil price will recover and it will bring a choppy picture again probably not more than 12 months.

CIMB, RHBCAP plan to scrap merger?

Once again it is like joke of the day when people all eye into the merger and spent so much resources. I never like CIMB as they have been merging too much and too fast. However, understand this may be the political reality in Malaysia. Sometimes we just can’t do much like the Southern Bank case years back.

However, to me is a good news where I value MBSB easily RM 3.00 above. RHBCAP fair value at RM 12.00 above. The call off of the plan will initiate us to buy call on both at current level of RM 2.17 and RM 7.70 level. As of CIMB, I will suggest a switch to RHBCap or MBSB rather than them.

Buy stocks in value, don’t forecast market trend

The best way to invest in stock is by its value.  The price of stocks may fluctuate across time. Only by investing into a value will allow your chances to profit more in long run.

There is no need to look for its low or historical price.  Also be prepared to lose some market values before you can learn to profit from it.

Buy stocks that shown values. Pack your golf or gym beg and get some quality times.

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