Apex Healthcare has recently gaining market share in Malaysia pharmaceutical industry.  As of the current down turn, its price has adjusted back to RM 2.50 level compare to a high of around RM 3.3, current PE is around 7-8 times and Forecast year around 6-7 times easily.

I like Tom Peters’ theory, if i am not remember wrongly.  “Management by walking around”  That also a key factor to always give boost to us if we confident to see that Apex’s products have been growing seen in many clinics.

We have done the following swap:-

Ogawa and LTKM –> Affin Bank
Tebrau –> MBSB

Addiitonally acquired UOADev and its call warrant mildly

Unless it is a recession, if PE fall below 5 with sound business model. It represents a 20% return on your investment. Unless something unexpected coming again, we believe the market is overdone.

At the price level of RM 1.250, the PE is almost 3. With government behind the lender. Risk is extremely minimal. We have also added SUNREIT in the morning.

Simply, it is a very good retail REIT in Malaysia.

Lehman is unexpected follwing an unexpected property bubble burst in US that caused Credit issue. Currently, i believe most data is on the table. Unless something is hiding, we should enter into a more stable zone and correcting the overdone soon.

Imagine across the world beside of Eurozone, America, Asia, Middle-East all corrected by 30-50%. It is reaching 2009 credit crisis low and forming a “W”. I think if all make things right, a recession or technically recession is possible. But i still think is a slow down rather then a recession.

For the local front, KLCI at 1360 now is consider expensive if you compare to HSI and STi where you can find plenty of PEs between 2-5 times companies with good business model.

I continue recommend a buy mildly as long as the company has dividend policy more then 3% then has sound business model.

In Malaysia, we likes Affin Bank, POS, MBSB, AEONCR at the moment. Seriously beaten down but the valuation is cheap and sound business model.

We bought additional Bernas.  Also we sold off Voir and Jetson, swapped to MBSB and Tomei as dividend and potential to pull back faster.

Acquired additional 比高集團, 國金資源, 麗新發展 as long term Hong Kong Portfolio and we have added SUNREIT as it is our objective to increase holding due to its massiv undervalue assets.

For a long time, Fed kept making mistakes.  However, this time i believe Fed was doing the right thing and more responsible.  Even though a lot of people is expecting QE3 including me.  It is true, US does not has the money anymore.  You cant simply print and eventually because of growth.  The swap to ensure long term low interest rate is still good.  If QE3 arrive, do we need QE4?QE5, the problems need to be solved and to resume a natural growth.  Generally, i do feel is over done for sure at the moment.  If we need to crash, let it crash, if we just dont have the money around the world.

KLCI will test 1360 for next support.  But i do think market is very cheap.  Considered Eurozone Hang Seng, STi, US, KLCI all corrected from 30 – 50%.  It is fierce enough this round.  However, our strategy is still on buying low gradually.  We will enter the market tomorrow again.  Across 20 years experience, no one can tell you how low a market can go.  Our strategies are below:-

1.Buy gradually and mildly for every Dow Jones or Eurozone crash trading day that affected the local market.

2.Buy only dividend stocks that can create cash flow at least 6-12 months.

3.Buy Businesses that least impacted by potential recession or slow down.

4.Switching portfolio to highly beaten down No 2 and No 3 above.