Another step to further recognize the importance of REIT in the existing financial market. It is going to be a tool as important to bond for balancing portfolio.
Short sellers are right but they are worrying
Soros cashed out his investment in Gold related. Jim is considering to reassess his short position in US stocks. They insist the world economy is in problem. However, never before all major central banks QEs are holding the markets or even create bigger bubble in years to come.
Personally, we feel that it is going to be low rate, low growth and mild inflation period for many years. But stocks and REITs will going up much more before a real fall. No one knows when it is going to come but I don’t think in between 1 to 3 years.
CIMB – Buy on weakness as profit stabilised
Slight improved in revenue but profit increased to EPS 10 cents. We think is a good result and will continue be our top 3 picks of the year.
We added MBSB, EIG, OCB and TWREIT last week
We continue to buy in weakness. Mainly focused into MBSB. If price drop below RM 0.80 again. We will be more aggressive in accumulation.
How to reduce cost of living in Malaysia?
Reduce interest, reduce tariff, increase spending, easy loan for first time house buyer, reduce car tax, increase minimum income & etc. All mentioned are not structural approaches when the basic income driven mechanism is knowledge and skills. Cost is forever trending high due to universal rule of inflation. Increase main stream income is the only solution.
When above 60% household income below RM 6,000 per month. Merely 2 millions tax payers with income more than RM 3,500 for 30 millions population. The main street low income structure is obvious.
The key is education our ministers and politicians. Structural change of mid to long term fiscal spending on education and R&D. Excluding privates schools and colleges. Why we need another tallest tower when we can also increase spending in education? Doesn’t spending in building quality education as compararive to infrastructure spending? We need massive educational related fiscal spending as catch up.
KHIND – consistent result with innovative small ideas
We like KHIND as we have personally used it’s products. Innovative and reliable. With the consistent result for many quarters that we have monitored. We will increase our holding slowly.
MNRB returned to quarterly profit
For many past quarters that MNRB has slipped into red. 1st quarter of current financial year brought good news with back to normalise profit. EPS 14.5 is consider a good result. We would like to see improvement from next 2 quarters before we issue a buy call back again.
Tim visited to China and opening R&D by end 2016
Tim’s move will ensure this big market segment for IPhone. We.see it positive with IPhone 7 launching soon. We believe a strong competition of Samsung Galaxy 7 will make Apple pick up more to get technically closer to all. Though I am a Samsung fan with particular in Note 7. But I think Apple IPhone 7 should do well. We long Apple shares since USD 107 for short term strength.
We will increase equities investment ratio
Our model is there is no crash ahead. But low rate, slow grow and mild inflation will be the scenario. Thus, we cut down our hedge and cash. We will move more focus into equities with stable business and trading under NTA.
MREITS and SREITS are cheap if compare to J-REITS
An anticipated prolong slow economy worldwide. Fiscal and monetary policies devalued almost all currencies. However inflation remained in line or expectation. REITS as asset based investment will be an alternative to bond for many investors. As bond return affected by monetary policy. REITS will benefit with lower cost of borrowing to offset vacancies rate.
BOJ recent stimulus executions include buying of J-REITS pushed it values average 60% above its assets value. That transformed into world most expensive asset.
MREITS and SREITS are consider cheap if yield still fetching average 5% above with capital appreciation potential. With the high speed rail link in making a strong economy impact between Singapore and Malaysia. Both REITS are still very attractive. Why there is a compromization of Malaysia and China. We strongly believe is the competition of Thailand canal.