We have made a decision to sell off our Stemlfe which has a PE of more than 20 times base on recent 2 quarters earnings. We switched to Puncak as to both speculative that Selangor government may takeover. But we believe at least above RM 4.00. If the takeover is not successful, the current EPS and NTA is still undervalued.

We bought in Lippomalls at SGD 0.430, Teledata SGD 0.013, ABC at HKD 3.480, Kawan-WA at RM 0.115 and IGBREIT at RM 1.200.

We sold off Golden Medical at HKD 0.920.

I have been always an advocate of reducing subsidies especially Petrol. Too much wasted resources and cheap fuel cost has caused inaccurate market pricing on services and products.

However, in the same category of fuel cost. Taxes on vehicle should be drastically reduced. As it cost unproductive loan in the system.

We should have a normal petrol price which is pay per you use. But low taxes on vehicle that encourage vibrant auto market.

I suggest not to link this issue to benefit to the poor. As it is a completely wrong idea. The pricing chain will increase after fuel price increased. A few more hundred RM given a year does not help much at all.

On balancing our budget. Isn’t it always a top priority to plan what you can spend rather than revise plans?

32% of par value of RM 1 equal to RM 320. Deduct 25% tax left RM 240. If based on our entrance price of RM 2.80. It has a yield of 9%. If based on the current price of RM 3.50. It has a yield of around 7%.

We still recommend a buy call on MNRB due to its value to ROI investment ratio.

For years that we have been looking for direction about how to steer our economy to a better position. From private sector initiated projects to governmental projects. So far. I personally think we really need a theme before it is too late.

Too much time spent on politics and emotions. Most of the policies and reactions are kick and move. Probably I have gone through a most quiet Merdeka day in my life.

If this to continue, we will reduce our re-investment locally and looking for more focused economy elsewhere.

If Jim is correct, the next move in the world market is waiting for a disaster crisis ahead. Personally, I am not too sure it will have happened that fast. But I agreed that he has a point. So a cycle investment with diversification into asset related is important. First, the best way is to reduce any debts so that you are able to buy cheap asset when it happen.

We continue to mildly bought in:-

Gadang at RM 0.780
Multico at RM 1.500
PLABS at RM 0.140
PAVREIT at RM 1.210

Agricultural Bank of China at HKD 3.280

Tropicana – improved yoy revenue but flat profit. Still a hold with RM 2.50 target. Current price is getting cheaper for higher ROI.

Allianz – Strong consistent revenue increased with slight profit increased. We continue recommend a hold with a target price still at RM 12.

FocusP – Flat results and struggling to break for a better or worst line. Single tier 1 cent declared and on target for better than 3% yield if entrance at RM 0.280.

Plabs – Improved revenue but lowered profit. Average 2 quarters profit with satisfying revenue. It will be better if most company can control cost while improving revenue. For now, we are ok with the result.

OCK – Flat revenue and lowered profit. Recent placement caused price hike but not looking justify at the moment.

We think the sell off is over done. However, market weakness will further prevail but we still think KLCI will stage technical rebound together with RM. it is a good buy opportunity but need not to be fully buy in. We recommend a first stage bargain hunting that is 20% of your emergency fund.

We like Kawan and Multico. For bluechip we like RHBCap.

We have done some bargain hunting activities for Kawan, Kawan-WA, Multico, Success, Uli, Qcap.

We started to hold Lippomalls SG as our foreign REIT target in the next few month. As we like its yield for more than 8% and strategically holding retail shopping malls in Indonesia.