We like this move but is far from balancing the book.  But I view it as positive step to reduce money printing exercise excessively.

QEs strategy by all world center banks look generate some result lately. However, if the book is not balance. It will be a matter of time things will get burst.

We do not believe many securities house call for forward earning of 15 times as reasonable. This means current PE may traded at 17 – 20 times. It is always a probability game in the market. Given an anticipated inflation due to removal a subsidies. We believe 2014 is not going to be an outstanding year. KLCI may grow but not significant. Downward risk is much higher if any issue arises.

Our 2014 investment strategy remained the same. However, we added a criteria where part of our focus will be into weather change related.

1. Identify companies that will grow in global climate change.

2. Continue invest in agricultural and food related companies or its related supply chain.

3. Asset related investment as part of the portfolio or it’s related supply chain.

4 Reduce debt ratio and increase stable income.

5. PE 10 or lower will be the first criteria to reduce risk. If not fall into high growth industry that we like in climate change.

Kawan Food has picked up volume and crossed RM 1.30 above with it warrant traded above RM 0.30. We believe it is at the right upward trend.

On the other hand. Funds are busy dressing for the last month. REITs are adjusting downward that we start like its value. However, we continue recommend a buy in Success below RM 1.40.

After the announcement of option for its CEO and owner.  Together with reduce losses and improving movie market size in China.   Bingo stock price improved from a low of HKD 0.12 to near 0.30.  We still recommending a hold but we would also like to see more activities from Bingo in order for its stock to look for next target at HKD 0.50.

We like the result of Success and we believe the stock is highly undervalued.   We recommend accumulation on Success.   Mean time, spreading our reinvestment plan to Alaqar REIT as the current price is at reasonable forward PE.  

We don’t see too much development for the last month except window dressing by funds. I advise you go for a holiday and plan a good position in 2014.

Weakness in Australia economy and world central banks in continuous supporting easing policies. Gold short term face tremendous pressure. Partly Indian policy on Gold as one of the factor. But we continue to like Gold buying mildly. We buying AUD gradually as well.

Q4 2013 announced results for both companies given a our adjusted fair value to easily above RM 2.00 base on PE valuation from 13-15 times.

Kawan announced profit of RM 3.57 cents and Success profit of RM 7.40 cents.

If the sales of P1 still not able to complete before end of 2013. We believe revenue reducing plus continue substantial losses are not looking good if pro-longed.

Either P1 should float its shares to finance a bigger expansion or it must sell at lower valuation to ensure they are not going into a non return road.

We will not re-enter Gpacket if not below RM 0.450 by now. We afraid it may have a good chance to fall below RM 0.400. Unless given any corporate development we are not aware and we advise patient by now.

Continous growing of Allianz revenue and profit consistently for quarters is positive.   If you looking for 10% ROI yearly.  Allianz to me a good option aside the Dividend policy is still not a lot.