A queit month expected moving into March 2015

Today is the last trading day of February of 2015. We do not expect too much development in sentiment for KLSE in the coming month. The key factor remained will be oil price, RM performance, 1MDB story development and upcoming GST in April. The best thing to do is to do nothing and wait for better opportunity.

Mixed earnings in average for the quarter

No surprise or shock but mostly in mixed to average lower profit for the quarters. Last minutes closing of quarter prompted hundreds of companies announcing their quarterly result.

We like White Horse with its consistent earnings with a positive results towards food segment. Kawan is doing well and OCB is in the black too. Financially we continue to favour Maybank, Affin and MBSB.

I raise our buy call on WHORSE with a target min RM 3.00. OCB will be our added list for food segment.

MSPORTS either is undervalue or fake accouting

All listed Chinese companies are not doing well both in Malaysia and Singapore.  Partially due to their credit worthiness and genuine attitude towards their business.  

If is true that if there is a quality company their first choice should be China and Hang Seng as their favourite. 

We have followed msports very long time.  A pretty much hate it or love it.  But with its consistent result and the current traded price is almost a non question bargain.  So it is either pearl in the shell or it is an empty one.  But we tend to be more risk taking and start buying with our write off possibility in mind.  We bought MSPORTS again today at RM 0.14 and warrant at RM 0.035

We added Kawan and Kawan-WA on the 1st trading day after CNY

As more reports are favouring our long term holding of Kawan. With 2 reviews in the month of Feb rated its fair value at RM 2.9 above. We feel happy and hope we smart enough to buy more when the market start to fully value this company. We bought Kawan at RM 1.6 and warrant at RM 0.600.

To recap the history of this counter. We started bought this counter years ago when the warrant at RM 0.10 and its mother at RM 1. We have off loaded when warrant hit RM 1.1 to 1.2 and its mother hit RM 2.5 to 2.7. After recent ex for bonus issue, the stock price adjusted backward and we do believe is cheap again. With many reviews popping out for Kawan. Oh yeah that’s can be a trigger point for the second run up again.

RM continues weakening hovering 1MDB issue

From slowing growth to low oil price and a strong dollar.  RM has actually depreciated between 5 to 20% against various major currencies excluding YEN and Euro.

During the Chinese New Year festive season. RM fluctuated a lot which is usual for the market.  Personally I think 1MDB issue is now hovering investor.   A more transparent approach may help investors to understand the issues arises for better confident.

MNRB reported loss of RM 20 mil due to flood

An unexpected event and reported a loss due to one of the worst flood of the nation.  However, probably a better hedging as flood will be more frequent due to climate change.  We give it a pass but if continue same problem without learning to find a solution may prompt as to a downgrade.

Seasoned results are satisfied

We are delighted to read many neutral to positive results within our expectation.  We believe they are jewels in KLSE.  We continue to be selectively stay invested.

We like certain value stocks like Affin and Kawan.  We will add on some during this festive season. 

We started holding HEXZA

An old member of KLSE going through many high ad low.  Lately we see its earning stabilise with more corporate activities.  We bought some to motivate our monitoring on it at average RM 0.79

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