By next week if there is no rally, we may turn shorting the market depending on the KLCI movement. 9th Jan protest and final verdict on Anwar’s case may be a factor. If by Wednesday thee is not much movement, we will turn bearish for Q1 of 2012. As we are firm believer of market sentiment dominating fundamental values in timing.

1 Tomei
2 Oldtown
3 Bonia
4 Stemlfe
5 AeonCR / Favco

We have added PavREIT and Favco mildly during the first trading day.

At 1500 level and facing a slow down in 2012.  Our strategy will be simple as to wait for more signals.  We will re-invest dividend from our portfolio.  However, increasing our cash position and we will wait for signals before we enter more.  We summarize our strategy as below for Q1, 2012.

1. Sell any high PE stocks during pre-chinese new year rally, pos-chinese and pre-election. (if any)

2. Re-invest dividend from stocks back to top picks and REITs – 30-70 ratio

3. Increase cash position and wait for signals or opportunities.

4. Q1 2012 result is important signal for us to decide whether to buy, hold or short.

5. Speculative play continue only on Bingo and Teledata SG

I am not sure whether it is a corporate exercise or funds are nibbling.  But we still favour it as our top stock in 2012.  However, last quarter result is not as outstanding.  We will continue to monitor before we decide to hold more.

Our top picks as of todate: 1)Tomei  2) Oldtown 3) AeonCR 4) Bonia and 5) we added Stemlfe as top collection target in 2012.  However, AeonCR has increased substantially from our entrance price of RM 4.50 to RM 6.80 today.  We will hold it for now as it is closing to PE 6 – 8 times.  We will bring forward another second line top stocks to replace with AeonCR.

Top second line stocks in view: 1) Analabs 2) Favco and 3) Bernas

1) Analabs – Consistent revenue eventhough it has not been expanding upward.  But the current NTAB and its EPS put this stock in a tremendous potential target to be privatised.  Eventhough it is not in the plan, the dividend yield and its EPS are good enough to further add on.

2) Favco – With its branding in Crane for high rise building.  We believe Favco will cotinuous do better as to man kind will continue building high rises across the globe.

3) Bernas – Finally, we agreed to Jim Roger view that argriculture is coming. In Malaysia, if we do not like Palm Oil, the only good choice on hand will be Bernas.  Nex 5 years, food shortage will be an issues.  Prices will move upwards and it will be good to hedge via company like Bernas.  If i dont want to be farmer, atleast i own the stock.

From a very high from of even 50 times PE until todate price.  We believe Stemlfe and its business model will start to emerge value to investor.  We have acquired mildly and start to hold Stemlfe.  Anything below RM 0.300 representing estimated PE of 10 times.  With this high potential healthcare industry, we start to issue slow accumulation call on this stock.

During the opening market, we have added these few stocks as re-investment plan.

Eventhough we have added Pavreit but we dont like the yield as of current pricing below 6%. We will wait for better price from now. We added Teledata SG again as we firmly believe we can easily reap 3-5 times return if they successful turnaround the company.

We believe a mild upward of KLCI plus rotational play ahead of 2012 Chinese new year. But we recommend a continuous selling of speculative portfolio in exchange to more stable dividend stock.

Exchanging PE 20 with PE 8 and below. Eventhough KPJ is very prospective but with PE of 20 times, we decided to reduce the risk