Added STAREIT, KLCCP, AEONCR as dividend play. Also added Innity and Handal on beaten down speculative play.

I am one of the fan of Jim where i do pay close attention to his philosophy in world economics beside of Buffett.  Week ago, Jim said “Whatever you call, a cupcake? that will be a QE3 coming.”  The huge inflation across Asia and the world pushed up by a weak dollar is a long term strategy of US.  A simple understand that a weak dollar will increase competitive advantage atleast minimize the gap of manufacturing’s cost compare to China, India, Indonesia, Vietnam and etc.  One of the key problem that you can always rely on imports as it is not going to balance your account.  That is also withness by many times US keep pushing China to revalue their currency.

Looks like, QE3 is coming, as suggested not to call QE3 but this will tell us that US economy is indeed not out of the dark yet.  Any further action will prompt that currency value is devaluating by itself.  Thus, whatever you buy, as long as you dont keep cash. Bluchip equities, Commodities (Gold & Silver), Properties are all trend north.  Thus, you really need a return which is 8-10% minimum as the inflation plus devaluation of currency will eat you capital in anything below 5% return.

We still buying gold consistently every month as we are not a good timer for the chart.  We believe this will give is a good time to buy in average price of Gold as one of the strong hedging tool for us in our portfolio.  Silver?  We dont have the size to enter into that kind of futures yet.  But we will consider if there is any available tool.

http://money.cnn.com/2011/07/13/markets/markets_newyork/index.htm?iid=HP_LN

Whenever we find value, we will add on.

Oldtown at the current PE of RM 1.33 is around PE 11 times.  We like it is because of its branding and its plan to penetrate into the China market.  In Malaysia alone, it is a day to day life chain.  Though not offer the best food but averagely welcome by most.

We like Deleum because of its consistency of dividend and earning growth.

Holding minimum to start tracking these both company.

During this worldwide pull back, it is a good time to increase some of our holding that run above our enterance price before we intend to add more.  麗新發展 is a highly undervalued stock that suit our favour.

Cheetah price maintained around RM 0.480 but Innity emerged some sell vol at RM 0.125.  We have added more to our portfolio.

Also added Handal, AFG and AFG-CD as our speculative portfolio today.

Added another small block today in our portfolio

We start holding this company after a good opportunity that after we have met up with him last Friday – Mr. Goh.  The impression is till date, he has been the person that we are very impressed.  He knows his business well, he has a good philosophy.  After reviewed its annual report and its recent activities, we believe this is a long term buy for our foreign portfolio.