We started investing in start-up companies

Since 2019, we started to expand our investment strategy into start-up to improve return. We have a good invested target Buildxact from Melbourne. https://www.buildxact.com.au/. We likes their focus and aggressiveness. At the same time solving some specific problems in their industry. It simply a perfect platform for small builders. Market targeted is in Australia, Canada, UK and US.

By around December 2020 last year, we also invested into another start-up called L28 that uses blockchain technology to sell beef into its first targeted market China. https://www.latitude28produce.com/. We believe the market is very potential as demand of agriculture like genuine beef is highly needed in China.

In 2020, beside of investing into new start-up. We will also explore the potential to start up new business in 2020 given opportunity arises. Expanding our reach into different portfolio.

After US and Iran show is down – Buy

From both attitudes towards non war. You can be pretty sure everyone wants a living. I think 2020 will be improving as a better year. I suggest to adding weight to investment further. At least I will do so.

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.

Unsettle local politics and world trade hampered recovery

I think the current US trade negotiation may prolonged to even a full deal in quarter 1 of 2020. As such, there will be less time for the recovery for world economy. Together with the local political scenes where confidence to the current government fading slightly. Together with the fighting within own parties will see a very unsettle year for Malaysia. As such, we continue to move towards dividend yield and fundamental investment in 2020.

We sold Insas for Ecoworld and MBSB

We found INSAS does not have catalyst to move up even NTA is high with holding of INARI. As the trade deal to be signed is near or even Trump might be potentially remove from office. In this case, INARI case of being heavily benefits from trade war may not be realised. We decided to sell off all INSAS with a small loss but switching over to Ecoworld and MBSB. Both are beaten down but with stronger potential then INSAS as a whole.

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