We are adding MBSB, OSK, Ecoworld

Into the last week of December 2019. It is indeed uneventful year with prices mostly down. We noticed except certain manufacturing related to industrial 4.0 are being supported. But we believe it is also overdone by funds.

Our strategy of keep investing but focused into blue-chip and growth stocks with strong dividend yields is indeed appropriate in review.

We bought a number of stocks across GENM, CIMB, MBSB, OSK, YSPSAH, KIPREIT, SUNREIT, ECOWORLD.

We are holding our position except selling off some INSAS for MBSB.

The market remained as the same except we believe some highly underrated stocks may perform in 2020. Our top pick remained MBSB based on managing by wandering around. We notice MBSB is aggressive and earning should improve in 2020 further with our unchanged min fair value of RM 1.50

As of OSK and Ecoworld both affected by its property biz sentiment. But they are smartly target some segments and their projects did OK as to the industry. Furthermore, OSK jewel RHB Bank is performing well and the current price only reflect OSK holding in RHB Bank. Buying OSK is like free for its property development division.

Lastly ECOWORLD, IPO around RM 1.20 and its continuous improvement towards its revenue and earnings should have a target value also above RM 1.50.

I understand lots of stocks are undervalued. But it is also true that macro and micro issues remained uncertain. But if base on our believe of no one can forever forecast a market sentiment. We can only follow or buy at depressed moment. We continue to suggest buying into the market with fundamental valuation, growth prospects and dividend policy as main consideration. We will continue to add on stocks and reducing unproductive debt ratio at the highest speed possible.

When the market condition rebound, we should reap the best from it and we are still ready to hold on for another 2 to 3 shakes in the market.

A prolonged stagflation in Malaysia

Though there is a registered growth but may not be in the main street. Together with macro factor. We are in stagflation perhaps even in a longer period of time.

Stocks selection become very crucial plus our suggestion of always with dividend yield.

Our strategy remained the same with mild accumulation with continue emohasize in cashflow model and reduce un productive loan portfolio.

Hold for Jaks as for now

We will not buy further but hold on to Jaks as we believe the target price will hit RM 1.60 no far away. The support is building at RM 1 to 1.2 level.

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