Haiyan Typhoon comes in mass destructive manner. Are we doing enough for the ever changing damaging climate problems? Almost all scientists and associations warned non stop. We all know the problem but because of capitalism. No one want to back step and take more initiative to do more for earth. We strongly believe there will be more cost needed to fix it. All climate changed related industries will benefit from it.

We favour 3 Malaysian based climate changed related companies under our portfolio and we will increase our holding further in 2014.

1) Cypark – Business in renewable energy and waste management

2) Analabs – Waste management, water treatment and Recycling

3) HHHCorp – Waste oil management

We have disposed up to almost 80% of our holding for Censof. We added on Multico and TWREIT as part of the asset related investment strategy.

From its initial IPO price of USD 26 to a moment crossing USD 50. That’s not the surprise as 2012 financial year reported a loss of USD 79 Million. with a turnover of USD 317 Millions. As reported in 2013, revenue at USD 422 Millions and increased loss of USD 134 Millions for first nine months. It has a very huge grow story. Personally, I think is a bit over. Perhaps is the branding that keep a strong hope for future development. But it is not our cup of tea at all.

Deflation has not pick up steam. However, some data shown provoke ECB to reduce rate again to avoid deflation. ECB promised further movement if fail to stimulate the economy further. In short, we should have another 6 months to 12 of good stock market before it rationalize, pull back or crash. Whatever…. the market is flood with money and we remind everyone asset oriented investment strategy as well.

As planned, we disposed some Censof at average of RM 0.635 and switched to Gadang at RM 0.940. We start to re-look into Gadang due to its plan to switch its business to recurring rather than project based. We will power plant acquisition is positive even thought is minor. We like this business concept. Further, order book on hands are good enough for Gadang to be busy for the next few years.

Last week, foreign investors net selling amounting to RM 127.30 millions. The week before recorded selling of RM 480 Millions. Total of four weeks is RM 1.1 Billion. We are not sure the data is net selling or gross. But local funds should be the buyers to support the market. This explained why we thought the market should be weak after a prudent budget in short term. However the market move upwards with support on KLCI component stocks.

We continue recommend a hold to our early purchased of Playmates as its profit soared to HKD 661 Millions with 31% increased yoy. We based on its 3 times EPS should valued at HKD 15.00 easily. This will transform into 400% return from our initial investment. We still think this counter should worth more base on a common PE of 5-8 times.

We continuous to nibbling Teledata as we strongly believe the stock is under valued. We have persistently queue at SGD 0.010 but not manage to get any from there. We decided to acquire slightly at SGD 0.011.

We are now estimated as top 30 shares holder of Cheetah, Layhong, Innity, Tomei and FocusP. In 2014, our fund will aim to acquire a substantial share holding of a listed Co. Our 2013 mission accomplished.

After a year of research and with the help of a very nice local friend. We have decided to buy Richmond Quarter for several reasons. 1st it is near beach, 2nd a commercial mixed project, 3rd at a strategic location that is near amenities. 4th Aussie dollar is 10% weaker than normal. 5th Comfortable price. We will continue to gather information and start further property diversification to overseas.