Ringgit will continue stronger in 2nd half

We have stressed tht early of the year. RM is undervalued. The fair value of RM vs US should be 3.8 vs 1.

MNRB continuous improved earnings is a strong buy

Sometimes ago when East Malaysia has a devastating flood. MNRB overall performance turned negative when needed to pay out huge compensation. The recent result of 15 cents EPS per quarter reinforced back a strong buy call for MNRB. Target price above RM 5.00.

MBSB got approval for merger

If the price stay below RM 1.30 is a definite buy. Last quarter of write down and 80% potentially write back. Merger with a better valuation and more legitimate products under banking license.

It will be a last call for a golden opportunity. A strong buy call on Monday.

Neymar £200 million moved to PSG and Bitcoins hit USD 4000 – a disastrous post QEs effect.

Neymar moved to PSG created world record transfer fee. In fact not just Neymar but overall all players registered ultra high transfer fee since 2010.

Bitcoins hit USD 4000 where certainly a bubble to me whatever reason you are going to justify it. But cant be short as i really don’t know how much it can goes up before fall back.

Property price for all major cities continue to climb with low yield justification. Even smart phone prices are going up every year.

Money becomes smaller and yield becomes lower. However, capital gain continue being inflated and inflating. World major central banks will start to raise rates. Then follow by lack luster economy and easing will come again.

Dow Jones creating new high. Coporate earning become better. In fact it is not business is getting better but money become smaller. A developer used to sell 10 house for certain revenue. However, now they just need to sell 5 to have a better number.

A major disaster will come to rectify this situation. But when? I dont know perhaps still years to come. But we will be careful to invest perhaps more into bluechips that can be benefited continuously from this inflation.

We will stay invest in bluechips and growth stocks. Cutting off speculative investment. Buying commodities or if there is any good yield property.

Perhaps, start to build up readiness to short the market. I hope i will be able to detect the signal early. But as of now, stay invested but reduce risk by switching most funds to bluechips and stable high growth company.

Our top picks after rationalized

1. MBSB – Continue accumulation during weakness.

2. INSAS – Buy mildly on every dip but should not over invest.

3. Maybank, CIMB, PBBANK and AFFIN – Long term buy

4. Ahealth and YSPSAH – Hold and acummulate mildly on wekaness

5. Paramount, EIG and MNRB – Add only during market correction. Favour more on MNRB in mid to long term.

6. MREITs – only favour REITs with a theme

Alaqar – Healthcare reits that have consistent growth every year even it is small magnitude.

YTLREIT – Hospitality REIT that will perform well when middle income group growing with travel as important lifestyle.

ARREIT – Diversified REIT with portfolio holding many strategic locations as stakes after MRT project.

MQREIT – Governmental linked with monopolized governmental related portfolio after reverse takeover by MRCB.

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