We sold some PAVILLION REITS for UMW

It is our first time to dispose REITS for shares. Pavillion REIT has recently rocketed to RM 1.93 which we believe it is time to Reap the profit given UMW emerged as opportunity.  We sold some and exchanged to UMW at RM 3.65

What the market outlook after CNY? 

We continue to favour an asset oriented stay invested strategy. With added momentum as we forecasted a gradual recovery with potential risk of global debts and Trump’s initiated trade war.  

However, our top picks remained factors associated in micro national rather than macro extremal factors.

We are in the mode of investing even more REITS in both Malaysia and Singapore.  We may reinstate our investment since we have stopped invested many years back. But must be strategically a story to tell and yield guaranteed.

We added UMW as our top picks

We added UMW with a intuitive target value of RM 8.00.  We like UMW always except they have entered into a non experienced industry. We continue to issue a buy call as long as below RM 6.00 seems a good growth prospect.

Our top picks:

1.MBSB – target RM 1.60

2.CIMB – target RM 8.00

3. EIG – target RM 1.60

4.UMW – target RM 8.00

Trump pushes on all his Protectionism “American First” 

In the first 100 days, he is pushing ahead all his American first policies.  If there is a compromization from the world leaders. I see Dow Jones going towards 25,000. But if the world leaders are confronting with the same strategy. Something hard may emerge back. Our view is the world economy will recovery provided trade world is not worsening.

Now Trump said Dollar is too high

Fair enough a good message send to all speculators advocating a strong Dollar.   It is not going forever as the fundamental not changing too much.  Worst, too strong Dollar may Hurt it’s Economy.

MBSB – Why most stocks Analaysis from securities firms are useless to follow?

A month ago when few securities firms downgraded MBSB to RM 0.78 or even lower.  Same as some downgraded CIMB to RM 3.90.  If you like to follow these houses I probably guess you may find hard to profit from your investment.  Take an example of MBSB, it is true that due to impairment exercise caused their earnings down with a high PE from 20 to 30 times.  But if you understand the reason behind and it’s continuous increase in revenue with solid corporate plan. You will find not hard to keep buying the stock due to it known factors. Beside, EPF holding nearly 70% with CMY holding another 10%.  That’s a stunning 80% holding with only 20% free float.

Securities analyst will tell you that the fair value is at RM 0.78 or latest today a reviewed said it worth maximum RM 1.09.  I will not blame them as this is part of their game.  Their unit trust fund managers are also not able to buy the share due to the PE ratio.  But if in this case impairment is done.  The profit of current loan base of MBSB will provide a strong PE and that time securities houses will upgrade them to buy call.  But that’s probably when the price hit RM 1.5 to 1.6 and many going to enter at a higher price.  By the time they ask you to sell.   Probably the stocks price already drop drastically that you may need to cut losses.


We reinvested dividend from MQREIT into MQREIT itself and a few other stocks.  As our model of investment view cash flow is a very important element.  Income stocks are our main consideration to boost cash flow. Beside of continuous identify quality growth stocks to be invested.

When IKEA selling CR2032 at RM 4.90!

I bought a Maxwell 2032 at RM 15.  I changed it at Harley or Lexus at RM 30.  But lately I bought and changed it myself at IKEA at RM 4.90.  That’s not the point only because RM 4.90 for 8!!  Be it there is a quality difference or branding issue.  The pricing gap indicated more corporate is covering down stream business.  Perhaps very downstream.  When this trend continue and I believe it will continue.  Small businesses are hard to survive.  One day everyone wake up will only work for giant corporate.  To hedge it, you will need to adjust your portfolio more to bluechip than small cap if the same theories apply.  

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