Our picks has received some good support in the first week of 2013. Bingo, Sunway, Allianz, Alaqar has picked up momentum. We see it as good sign and we re-affirmed our picks will have a good year ahead.

We believe if positive signals flooding, we may see a small bull now in Q1 and KLSE should pass through 1700. However, we remain our stand that the market is not cheap any more. We believe HSI may move higher together with Dow Jones than KLSE as their valuation still better to justify than us. Mathematically, we will still defensive with selective investment. We will now increase ratio of cash, commodities vs REITs and equities. As REIT has move north substantially in past one year across whole Asia. Some yields dropped below 5% which we believe is not attractive vs its risk of its asset price level. But there are still jewels in the market for sure.

Due to too many trading transaction by the fund. We will from now exclude portfolio transactin update but focus into weekly update. thank you

Personally, stocks are always sensitive to uncertainty. However, any chosen government is actually the majortiy wish of he country. In short term we will definitely see some flashes but in mid to long term. If the change is for good then market should by right moving upwards. Just look at Dow Jones as an example. I am not worry.

1. Bingo Group HK – C HKD 0.156 T HKD 0.300
2. Teledata Singapore – C SGD 0.012 T SGD 0.050
3. Astro-CE – C RM 0.050 T RM 0.100
4. GPacket – C RM 0.460 T RM 1.000

I assume it closed 31st Dec 2012 at a higher note closing to 1,700 historical high.  Our market will start to become expensive even though money smaller and our country continue to grow.  But how much and how fast to justify another 100 – 200 pts rally?

The upside let say 1,800 and the down side can easily justify at 1,500 – 1,600 or more to average below 15 times PE. That exclude any further stress in the world markets.  We will adopt selective involvement only from 2013 onwards on our asset, commodities and agricultural related segment only.  We will be defensive and selective.

1. Sunway – C 2.34 and T at RM 3.00. New developments and asset related
2. Affin – C 3.40 and T at 4.00. One of the lowest valuation of financial. Still expect merging.
3. Allianz – C 6.90 and T at RM 10.00 Stable grow will enhance PE.
4. Alaqar – C 1.29 and T at RM 1.45 Asset related with stable business model to support
5. Layhong – C 1.25 and T at RM 1.80 Min. Agriculture, when revenue cover the increase cost, PE will enhance plus NTAV above RM 2.00

Above portfolio should have between yield of 3-5% annualy.

Moving into 2013 and we believe more QEsss from different government across the world will be continue. The books of all trouble countries are not able to balance for sure. That will cause money to become smaller and smaller. On the other hand, 21-12-2012 was not the end of the world. But scientifically global warming is almost inevitable which will cause a more severe weather that’ll impact agricultures. Jim Rogers bet on farmers that are getting older and with little supplies to this world where no one would like to be farmers. We think further with hardship because severe weather will impact farms more and more.

Our proposed sectors to be invested in 2013 will be:-

1. Asset and Property related;
2. Commodities related;
3. Agricultures and Food related

*. Finally financials related – If the economy does not crash, when money smaller will give bigger revenue and profit to the bank.

Note: Jonah is the grammer corrector today!

Bought Layhong at RM 1.250, Qcapital REIT at RM 1.190, Sunway at RM 2.340, Poh Kong at RM 0.445, Hai-O at RM 2.210 and AscendasHT at SGD 0.925