If there is real inflation in a normal economy. Yes, it may work. But if it is in the wartime and post COVID era. Is fiscal policy and politics better to solve the problem? Inflation is caused by reduced supply but not demand increase. Is this real inflation? Isn’t it too easy to hire a bunch of expensive financial experts that ended up only using interest rates to fight complex problem?
Hap Seng Plantation can be a member in your portfolio
It is not an easy task to find a quality agriculture company to invest in Malaysia that not link to Palm oil. We believe it is time to accumulate in long run moving ahead of issues on inflation, war time, climate change and etc. We start to monitor and accumulate.
Pay attention to supply chain revolution when IR 4.0, AI and 5G are overwhelmed subject matters
Uber and Grab changed the supply chain and created a new supply chain. Till date, these models are not even making profits. Following IR 4.0, AI and 5G pouring into all supply chains. There will be some industries going to be wiped out and some new Industries may take advantage. Thus, there is a need to be extra awake going forward if your major bet can be replaced And who are the
MBSB and MIDF merger has finally approved
Before the announcement, we added at 0.605, C53 and C57. Close to 5 months and the approval finally came through.
Out of a sudden, MBSB is one of the appointed bank for EPF load recently announced. Loan recovery from Bindai Linden. Customized loan MOU to MRT vendors. With higher interest rate income in place. MBSB set to make a big change in 2023.
The question is how much it worth. How diffcult to make a PE of 10 times for the price of RM 1.00. RM 7 billlion market cap need RM 700 mil profit a year?
If the price stay at RM 0.60. I will not have a reason not to add further. I still favour a volunteery GO at RM 1.2 and relist the bank and pair down EPF to 40%. Overweight MBSB from now till M&A complete.
MOF approved M&A
Custom loan for MRT corp. Vendors
EPF loan above 40 years old
Bintai Kinden to repay loan
Topglov signal is confirmed C2Z C3G added
I think the funds are moving in quite agressive. As such, I picked C2Z and C3G. Only modest speculation please. We bought at 105 and 265.
ChatGPT is going to be another catalyst to reshape many industries
From November, I believe around mid 2023. Many new products will be coming out leveraging ChatGPT and many industries may be reshaped. Even the newcomers may not be profitable like Uber. The key to investing will be also taken into consideration of the risk being automated. ChatGPT is like skynet if you are not suing it or controlling it the right way. But, capitalism will push it to the max. So do criminal opportunists. You are going to see more scams and more calls in the future.
Dividend and undervalued is the strategy as of now
Russian war, perhaps even China and US tension can be purposed escalated to facilitate the growth of military industry when other industries are projected to be weak. We will continue to be cautious and buying only dividend oriented stocks which are undervalued.
Tomei – highly undervalue but not sexy.
Besides of tech stocks. Nothing can command more than PE 15 times. But, the day will come and realize end of the day, tech stock need to deliver too.
As of now, we like Tomei. Although is it not sexy like tech stock. The stable I come across years should be a buy on dip below RM 1.20. We already started to collect Tomei and will expect to increase our holding gradually.
A massive 8.5 cents dividend indicating merger is on the way
I will forecast that a potential general offer of book value 1 time optional before switching to new stocks structures.
Or at least, a special dividend is on it ways plus new issue of securities for the take over of MIDF. Overall the merger is positive.
MBSB and MIDF merger is positive
After the submission of the proposal to BNM. It make sense for both to create values because of each other weakness. After the merger, both will be able to offer more products to the market especially the Islamic section.
Price at RM 58 cents is a steal. Perhaps the only reason the price struck is because of huge holding of EPF. I still think the best is to take it private at book value. Option for share holder to be remained in new share. Realize the value of a universal Islamic bank going forward.