We believe the fair value of Success is at RM 2.50.  However non consistent earning from last quarters.  We believe there may be a share holding competition that spiked the price up.  As our practise we sold 10% of our holding at RM 2.00.

Falling RM, slowing main street, weakening export demand by China, Europe and US.

Excitement needed for rural population to continue support BN.  Sarawak and Sabah sweeteners and falling stock market.  Stagnant property market. Of course foreign fund managers and credit rating agencies demands.

This will be a very tough budget that need to cheer everyone.  We think will be very much in focus to have a slightly over temp budget deficit of 3.5 to 4%.  Nothing can get worst unless BN going for own suicide.

The city folks or middle higher income group may be the only target for less subsidies or more collection.

We believe the market will response positively to the budget towards year end.

We have sold more UMZA at RM 2.30 and bought in MNRB at RM 3.50 above. We also continuous buying ALSREIT at between RM 0.975 – 0.980.

As such we believe the market will gradually recover towards end of the years.  All bluechips can see an average of 10 to 20% capital gain in next 3 to 6 months.  Unless a drastic event occur and we believe the chances of our expectation is likely to happen.

We believe the fair value of RM is minimum below RM 3.80 vs USD 1.00.  The current speculation of USD rate increase has pushed dollar to the high side.  Overall the fundamental economy in US has not changed too drastic in the past years.

Local front even though we do have 1MDB issue and high house hold plus national debt.  Savings, natural resources and private sectors are still strong enough to weather any crisis. 

Oil will recover and the fair value should be above USD 60 per barrel.  I don’t know when but be ready for another while ride up swing in short to mid term.

Especially after October budget announcements when the new budget will base on a much reality oil price.  However in long run that’s not healthy and our economy must not be too rely on oil alone. 

A new movie “Little Mermaid” is confirmed to be on Cinema around Chinese New Year of 2016.  We do not know the result of this film.  But we believe can be easily a speculative play on Bingo.  Current HKD below 0.300 is still a good price to accumulate.  We will add more if the price in between HKD 0.26 – 0.28. 

We have disposed some Axiata-C4 at average RM 0.165.  We are delighted with more than 200% net gain in 2 weeks.

We also sold some of UZMA at RM 2.34.  As we like our profit for more than 30%.

We bought back ECSICT at RM 1.43 and ALSREIT at RM 0.995.

The real impacts are both ways. Definitely benefit more to corporates.  We think the deal will boost market for short term.   Yes it may impact the main street to certain degree.  With Dow jumped 300 points also with easing monetary policy to continue.  But we still think dollar is overvalued.

We have started buying Maybank-C11 at RM 0.065 as we like the price with a potential valuecap profit when Maybank price above RM 9.00.  We also continue buying CIMB-C7 at RN 0.05 as we believe CIMB is currently seriously undervalued.  Partly due to the head is not in good term of Government.  Just like Airasia. 

We also added ALSREIT RM 0.99, MNRB RM 3.39 and ECSICT RM 1.41 with our reinvestment program. 

We have reinvested part of our MREITS dividend into ALSREIT and KSL.  We think cash in overseas and Fixed Deposit is not getting any better return.   Therefore we bought not ALSREIT at RM 0.975 and KSL st RM 1.52.