Inflation is going to be huge after war

Already printed lots of monies to handle a crash caused by Covid 19. The new Russian war on Ukarine will further drive all cost to be higher.

We have a good hedge of commodities and properties. But we think food chain will subject to huge pressure. Thus, we picked LHI as one of suggested accumulation in 2022.

Disposing MNRB and buying Willow

As flood continues and become a routine even for the country. It is wise to dispose MNRB all that holding for years. Key lesson learn that all reinsurance has got aow PE but will not be a favourite to investors.

On the other hand, we see a great growth stock in the making where automation is important for the region. Bade on the recent performance that Willowglen has won a number of good contracts and its future outlook. We will start accumulate Willowglen from now on. We have since entered at the price between 375 to 385.

Hyperinflation is here

You will not be able to imagine if there is no effect of inflation after huge amount of currencies printed worldwide to sustain the economy during this Pademic. Everything is going to be more expensive for years to come. In this era, perhaps only blue-chip and real estate will be able to keep you out of the storms for years to come too.

Recovery Insighted – We changed our position short term to aggressive

I may be wrong again, but I believe this time round if covid 19 is not going to mutate further. The market is set to recover. Being calculating the total infected cases and also vaccinated population. The virus is hard to spread further.

As such, we changed our position to aggressive buying. Main focus into Jaks WB, WC, CC and CE. Following up with Serba Dynamik C26. As derivatives speculative investment. We also like MBSB C37 and MBSB C39.

As for stocks, we bought Dayang, DNEX as aggressive purchased. We stopped all essential purchases as of now

Admid double crisis, we will add more next week

Crisis of Covid 19 and crisis of political uncertainty. We will see a difficult week next week. But, for years we seen KLSE is almost at the lowest after series of sell down. But we will not get involved into Semicon counters.

On the other hand, our top holdings MBSB may faced pressure due to CEO passed away. A respect to him and may him rest in peace. As he has done a great job in the last few years in transforming MBSB. Being said so, it may be new blood to come in and this will be a new management soon. At this point, we will buy on weakness tomorrow for a week.

Our buying in the current trend – Cypark, Tenaga, Sunreit and Topgloves. We have also collected mildly on some Call Warrants for CIMB, MBSB and Jaks. We have also buying in aggressively for Jaks-WB. Unless unforseen issue arises relating to all these counters. We are having a buy call as of now.

We also bought mildly on DNEX as we think the turnaround of Siterra worth to pay attention as of today trend.

Due to money getting smaller. Properties and stocks market everywhere are heading up except South East Asia that attacked by Delta without enough vaccines. But I guess this will be the best time to reenter the market.

We nibbling essentials

The current market is cheap. With sky rocketing Covid 19 cases and political turmoil. However, we are not sure anymore when the market will recover. So we nibbling essential TNB at RM 9.70. Topgloves RM 3.78. MBSB at RM 590. But we have added speculative Jaks-WB at RM 0.270 consistently In few days.

Our strategy is turn very caution but bargain hunting essentials. Stay safe.

Simply lackluster, we just staying sideline

Quality stocks moving south. Speculative stocks rotational up and down. A market out of fundamental investment trend. That’s forced us to become a net seller for the past six months.

What are we going to do now? Yes there is value in the market. But we will not feel hesitate to sell down any speculative play on our holding.

We still keep MBSB, CIMB, Maybank, RHB Bank and lately we are into essential like Tenaga and Topgloves below RM 4. Overall, we did pick some long term warrants mainly Jaks.

We did buy very little Focus-PA and Focus-Warrant as we found nothing can lower. Given the speculative culture, we should have a big probability to unload it.

Overall, we are a net seller as of now.

We turned slightly cautious due to Extended Covid 19 issue

The vaccination progress isn’t go with the plan. With evidence of mutation in India perhaps can be even elsewhere. This is going to be a prolong problem for a very long time.

The previous hypothesis of recovery is no longer in our favour. Thus, we turned cautious with the strategy of reduce debt, slow down new investment, turning more unproductive portfolio to essential like Tenaga, TM, Maybank, Alaqar REIT. Though Nestle and Dutch Lady are good choice but the PE is too high to be investable. Perhaps, Topgloves can be a good bet together even with Bursa.

We are disappointed with the information given by world government leaders and pharmaceutical Company on vaccines. With the current rate, there is no way that herd can be achieved in 2021.

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