Investing by wandering around

Sometimes when I wandering around. I will pick a good stock that I think their business is really good by facts. Like recently I went to hospital to do check up. Almost all private hospitals filled with crowd. Heavy crowds I mean. I think Sunreit, KLCC and Alaqar Reit will do really well. We are happy to buy more with their portfolio that includes medical centers.

1MDB default and it’s impact

Perhaps is overdone as the reaction will only provide a better opportunity for foreign fund to keep nibbling bargain.

1MDB default?  Long ago the entire management should resign and accountable for being up to this situation.   Purely business point of view but not political.

Trump winning sent a strong message to politicians

I am neutral on Trump but a lot of people in the world may not like him.  But why he is continuous winning and closer to be Republican nomination?  Perhaps a message of American trying to tell their politicians enough is enough.  Pragmatism is needed deadly for all angles of life in United States.

Foreign net purchases continue above RM 7 Billions

Over 10 weeks, purchases of Foreign funds hit above RM 7 Billions.   The sign is continue and we believe a strong market foundation is formed.  Market will do well in the next coming months.

However, trend can be short term as today market funds moving very swift with slight margin.  It happened in HSI as well. 

High household debt in current environment will drag retail business further

High household debt which leave less room for BNM to ease monetary and fiscal policies will impact retail further.  We believe retail business will be sluggish for another few years.  That’s does not transform into economic problem as government can continue to spend on infrastructure development.  Banks that got regional role will be in a better position for this sluggish economy.

We reinterate our view on 1MDB – The board and the management must be accountable for the mess.

No matter you are supporting government or opposition on this matter. The board and the management must accountable for issues that universally viewed as mess.

1. Cash flow problem

2. Debt ratio and risk

3. Unsustainable high interest loan

4. Overpaid for financial services

5. Unusual cash transfer internationally prompted investigation

6. Confusing approval or decision making process

The management, the board, the chairman and to certain extend even the Finance ministry must accountable for their failure of roles.  Even the most basic function of monitoring process is also in a mess.  

It is very basic things and I cannot understand why there are still many people defending 1MDB problems.  You can just try to become a CEO and bring a company towards this situation.  With even cash flow problem will earn you a letter to sack you.  A complete nonsense of the century but all executives involved still earn thousands and millions of remuneration.  

We have disposed all Maybank-C17

We have disposed all Maybank C-17 at RM 0.100.  The only write off likely to be CIMB-C7 as oil crisis caused unexpected turmoil in oil economy like Malaysia. But as for the mother we will hold it.

Panama Papers leak – a result of digital world

A matter of time, more of these information will be leaked. The nature of today digital world is moving towards this trend.  Perhaps more pressure for USD as businesses will rather physically buy Gold or assets than dollars in all so called tax heavens.

Goldman suggest to short Emerging markets currencies – ?!

They may be right after recent strong run up.  I think they are shorting the currencies or covering their shorts.

The origin of emerging markets currencies weaknesses were due to most central banks following US strategy to devalue their currencies. Besides, US interest rate rise a mere of less than 50 basis points sparked strongest dollar rally which is unreasonable.  Oil prices dropped also cause huge Ringgit drop in past 2 months.

Emerging markets currencies may have a correction at anytime soon. But there is no justification dollar can stay strong at low rates as of now.  Besides, in mid to long term.  The assets of emerging markets are no way to justify a continuous low currency until have a crash in economy.

If Greece is not possible to fail even it suppose to bankrupt.   Emerging markets especially Asean has more foots than dollar.  Goldman is a licensed speculator.

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