We have disposed all 匹克體育 and switched to 855 中國水務 at HKD 2.490. We feel that 匹克體育 has little room to grow when China is facing a slow down. It is almost on par to our investment after average purchase. We decided to buy China Water as we continue to favour climate change related business.

Ukraine crisis is worsening and a huge divide between its people is about to explode.  We call for any buying activity next week to hang on.  Stay side line and perhaps selling short a contract of KLCI May 14 in short term.

Yellen and fellow colleagues decided to reduce bond purchases every month to USD 45 Billions from 55 Billions. Even though US 1st Quarter GDP growth is below expectation potentially to bad weather.

I personally like Yellen’s approach that understand the needs to exit but not too drastic for the current sensitive market. However, the decisive move also hinted a good quarter ahead for US. Thus Dow Jones may continue to hit record high. Other parts of the world will enjoy a good sentiment and continues its upward trend. Thus, ASEAN markets will benefit even more and more record breaking days ahead.

As of the moment, we will be over weight stocks in the region as short term strategy.

When Bursa queries many penny stocks sky rocketed.  A standard answer no matter sharp up or sharp sell down.  All these companies rocketed from penny to high valued stock without reason. 

In fact, it is pretty normal as it even happened in Dow Jones and Hong Kong.  End of the day, Stock exchange can be a casino if intentionally use it the wrong way.  Sometimes even money laundering.

However, where is the value that cause these companies to sky rocket at the first place?

We continue to favour climate change related stock. In KLSE, our bet on Cypark has rocketed to RM 3.00 from our initial recommendation around RM 1.80. HHHcorp also tested RM 0.200 few weeks ago. Left only a highly undervalued Analabs still trading at RM 1.70. We believe the stock stagnant due to lack of new activities in new terms. But it can be a gradual long term buy.

On the other hand, 6888 英達公路再生科技 listed in HSI dropped to HKD 2.10 and trading at around 10 times PE. The stock is affected by recent sentiment of China economy but is at attractive price level. Union Steel of SG is proposing increasing their capacity by buying Chye Hup Heng Sdn Bhd. We still like Union Steel at the price of SGD 0.110 and below.

As for agriculture, beside of Palm oil companies. We rarely can find sizable agriculture company in Malaysia. As such, our reach will continue be in food base companies like Kawan Food, Lonbisc, Layhong and etc. We recommend buy on dip at the current price level as price for food companies in Malaysia needs to be re-valued to reflect its actual potential and soaring demand.

We believe the buying momentum is strong and may test new high again in 1-2 weeks to come. Beside of Ukraine crisis, the data shown from China is within expectation. Most other economy show sign of stronger pace recorded.

Local front, DiGi, PBBank, Tenaga are so far within better expectation. We see cheap fund will continue flow in the reverse the trend from last few months. We expect buying continue and intermediate target at 1870 – 1880.

We have sold off all Gadang above RM 1.900. We have switched all again to Paramount MNRB and now MBSB. We start to re-accumulating MBSB for one reason. We like the idea they are going for a bank license.

We have decided not to go for its right. But today we like MBSB for one reason. They are going for their bank license in 2 years. That align to providing back the greatest return to EPF. By the time when they got the bank license, they can get a better value for RHBCap to merge with the entity. So for us is a buy now.

The range bound behaviour plus persisted blue chip buying holding KLCI very well even Dow Jones has a bad week. We think the current position will be the same if there is no lead for next week. We have long a few contracts and closed with profit this week. Suggesting not to carry contract over night if not necessary to avoid unforeseen circumstance in case arises from Ukraine crisis or a chance in China or Europe direction.

We have disposed all our Pantech at RM 1.00. We believe there is no near term catalyst. We have profited from Pantech twice with the same price range of purchase and sell off. We re-invested all into our this year top picks again.