The reason not to buy political linked stock

I have not been buying any stock link to heavily to politics. The key reason is when policy change no matter change of government or even leaders may lead to nothing.

I remember MYEG when lot of people buying it. I did look into it but with the price ration of 20 to 30 times. I am out. But many fund managers were supporting it. A classic example of don’t take political stock as a blue chip stock.

I believe many funds are losing money after the regime changed. Because too many of them just like to go with the easy way and show result because of trend but not value.

HSR cancellation may not be a good idea

Overall the project is positive to drive economy activities along the whole area covered by HSR. When economy activities pick up. More taxes can be collected and this infrastructure is strategic to create partnership between Malaysia and Singapore. Lots of tangible and intangible benefits. I think cancellation of the project may not be a good idea.

But looking back into the leakage problem. A review on who to handle the project and cost of handling it may be good. Totally cancel of the project is definitely a strong U turn and many business planned due to this initiative will be dropped and write off.

Portfolio reviewed and updates

We have reviewed our position in EIG as it has made losses lately. We will see if GST removal could help before we decide on the stock. Currently is a hold.

We will start monitor Ken as this new quarter result shown reduced revenue and profit.

We have bought more MBSB, KIPREIT and Rhonema in the month. But we will start to buy CIMB again due to its drastic adjustment after opposition government taken over.

We have also acquired more REITs during the sell down early if the years when interest rate increased announced by BNM.

We continue to make adjustment to our portfolio. We reduce loser and increase our winner. The main objective is to move towards sustain grow, stable, good governance, good dividend yield and under valued stock.

MBSB Q1 result tripled profit

Write back has begun and base profit also improving mildly. A new journey and beginning may drive revenue and profit further in year. Together with a potential lengthy write back. I believe a strong potential to have EPS per year around 20 cents from end of the year onwards. A strong and safe bet. We will continue to buy in any pull back.

CIMB and Maybank shown value

We bought mildly into CIMB and Maybank as we like its value now. Especially CIMB and many thoughts it is link to previous government. If you look at the major share holders. It is too a people bank now. Great value and we will continue nibbling in the market as we think bargain started emerged.

A bookmark of analyst

I just read DBS expected RM to be 4.2 against USD by year end. I have copied the link in this DBS forecast of RM by year end. Days before KLSE opened. A number of analyst expected many results turned out to be wrong. But they still in the job. The greatest leakage on earth is the pay to all these so call analysts sometimes can be coordinated with speculator and real forecast but base on no ground.

New cabinet and council of elders will boost confidence

This is the first time in history. I think the appointment of Minister is based on merit though in an limited resource for elected MPs. Where Lim as Minister of Finance will change the core accounting of the country as the most appropriate appointment. Mat Sabu and Muhyiddin also appointed nicely within their capacity.

Particular the council of elders. With lot of experience from different era and areas. This is one of the most powerful economic council that I believe is highly beneficial to Malaysia.

With this, I would personally raise Ringgit target to RM 3.50 vs 1 USD and KLCI to reach 2,000 in next 12 months. Even could be end of the year of 2018.

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