Ken reported over 9 cents per quarter and Rhonema reported final quarter accumulating to over 8 cents. Our top picks remained MBSB, CIMB, KEN, OSK, Rhonema, Affin, KIPREIT.
I am not Warren Buffett nor Jim Roger. But I have been trading KLSE since 1992. I have some good returns more than 1000% in some good years. But due to risk control for myself. I never bought anything with huge focus.
As for MBSB, the number one thing Iike is it’s management. Follow up EPF holdings of close to 70%. If you rewind back it’s development. MBSB started falling from high when she started to position becomes bank. Many round of unsuccessful mergers cost them a lot. How many times you will dare to buy 25% of your asset in one counter? For last 20 over years. I think this is one of The most safest bet.
To earn RM 2 billions a year from 800 Mil after the merging is not difficult at all. If based on a 10 times PE the price will be close to RM 3. While waiting, it’s dividend plan will be still good if your current entrance price at below RM 1.30. Go for it and it is not too often you have something dummy 123 can safely to invest.
Even we foresee that they are nibbling continuously in large volume. We decided to dispose some and switch to dividend yield growth stocks. We have waited MNRB for too long by disposing it and switch to our main priority. As for Paramount, disposing the college properties are our main reason to start trimming our holding.
Over the years of RM crisis in 2016 and 2017. Be it of any reasons i continued to stress that RM fair value is minimum at RM 3.80 vs USD 1. With a 180 degree changed of all analyst views. RM become firmer and looking further height.
I personally view RM can have legs and RM 3.60 is a new target to challenge its fair value. If economy strengthen and perhaps RM 3.30 is not unachievable. Moving away from just rely on oil for budget will be key area that i can improve.
I did not buy nor sell futures. But we have sold most of our foreign equities and bought back RM valued equities in 2016/2017.
At RM 3.80 and below, we may start to reinvest into overseas assets. We are bullish in RM not because of its trend and sentiment but it’s fair value has long been misguided.
Many ideas around the corner on whether to buy commercial, residential, landed, condo, bungalow, auction and etc. For me is simple, I will continue to search for any property yield that are above 6%. It will be a plus point if there is a long term contract and the property value is at fair value. As for capital gain, plenty of investable assets around with good yield and capital gain. I will not be over stressed but continue to look for value in the market in 2018.
Just my personal theory. All majors countries including Malaysia declared strong GDP. However, retail and consumer sales are not in the same growth. Main street has no money!
Why? Imagine Industrial automation when machine replace some tasks. The share holder of the automated company profited. The company who produces the robotics arm profited. Even there are jobs for some but inflation due to QEs already impacted the world economy. You feel nothing even extra.
The recent announced top 40 richest in Malaysia. Mostly wealth increased even in a slow year of 2017. But due to GDP and infrastructure investment. Many benefited and balance sheet for companies and GDP looks good. How about main street?
Landscape of the economy like ecommerce, cloud service and payment gateway. Technology also speed up the process of reducing middle-class and provoke shift of wealth between countries.
Conclusion, you got to out smart and work harder in order to be out of the system. If not, your income improve but cost of your new lifestyle and inflation also increase. Your own balance sheet will continue to be nothing. Alternatively, you got to move to a socialism country and live from now for a better life.
I will continue stay invested but reduce hedging and debts continuously. I will create a good cash flow portfolio to ensure cash availability in all climates to invest. I will be more straight on fundamentals. Selling PE straight more than 20 and forget about forward earning or technical approach. I will maintain a disaster contingency fund. If there is a ugly days ahead. Then buy into the market and excel from buy low. Most important – I have time for my family and own hobbies.
I bought KIPREIT at 835, CIMB at 6760 and Rhonena at 850. Not going to be aggressive as markets are without clear direction at the moment. But we will buy more when value emerged further.
We bought further near market close for Rhonema at 840, CIMB at 3710 and KIPREIT at 820.
The rule will never change. Someone is losing money and someone is making money. The impact to the economy? I don’t think there is any. The loser will lose and and winner will start spending.
End of the day, history is repeating and the central bank’s reacted too slow. Many innocent victims once again into a expected crisis.