We are continuing nibbling on MNRB, EIG, ALAQAR and even AFFIN. We noticed that some strong buying activities on MNRB and EIG. We bought MNRB at RM 4.08, EIG at RM 1.10, ALAQAR at RM 1.35 and AFFIN at RM 2.70.

Looking for consistent yield?  Stable in term of company financial background?  Survive through inflation, deflation or stagnation market?   Also capital gain if money becomes smaller?

Alaqar REIT – with currency price of 1.31 to 1.35.  We love it very much!

Lots of ambitious and lots of target to achieve.   However, we are against a quick capital call just for M&A purpose.  M&A is not the only answer to grow.  It will a risky game depending on your partner and common vision.  CIMB is an example which eventually does not benefited too much from all M&A except capital keep growing.

We will slow down our buying of MBSB until their plan come with more details. Especially in this current local and global financial sentiment. This may not be a good idea for M&A.

Weak RM, regional sell off and local 1MDB issue will continue weight down the market.  We will take opportunity to bargain hunt our top picks but in minimum participation.  We believe the market will be weak and looking for new lead.

CIMB upgraded Kawan to RM 3.65 with reason as good proxy for investor in food industry.  Another news that it’s management is considering plan to venture into intant food market which has a huge potential.

Both news drive it’s share further to RM 2.60.  We think the volume is not just retail market player but a beutiful plan exercise.  We will still hold on to our target of RM 3.00 but we have disposed 50% of our holding on warrant.  We will continue to dispose warrant when price moving upwards.  We will exchange it to our top 5 + 1 top list of 2nd quarter of 2015.

Last few days we found Kawan has exceptional trading volumes that not seen in years. Together with major share holders disposed some stocks early in May. Sparking ideas of right issue, bonus issue, General offer or even a strong fund buy into the counter.

However, we still hold its Kawan mother share as we believe the price of the share worth more than RM 2.50 excluding the new plant contribution in 2016. Beyond that may worth RM 3.00 and above. However, we disposed some warrants at RM 1.40. We will continue to dispose warrant but hold on to its mother share.

Our target of Kawan remained with RM 2.50 before year end and RM 3.00 beyond.

After a quarter of loss due to claim for Kelantan flood. MNRB back to strong earning with 36 cents registered for the quarter.  This put MNRB back to our strong buy call with target back to RM 8.00.   However, we hope MNRB will learn with a better hedge in case for unforeseen events in the future.  Including Air Disaster, flood & etc as climate changes will lead to more potential disaster.  As long as not involving in any risky loan portfolio, we believe MNRB is a jewel in town for a long term hold.

Whereas Kawan reported a consistent result but not so exciting.  Probably the catalyst event will be its new plant that will contribute significantly in 2016.  We still like its business model and we maintain our target at RM 3.00.

.Our The other 2 top picks due to bad loan reserve.  Their quarterly results are somehow affected but we still like both MBSB And AFFIN.  TWREIT remained our pick in best undervalued REIT as the NTA at RM 1.9 is a big discount compare to current trading price of RM 1.27.

We bought MBSB at RM 1.83, MNRB at RM 3.63 and Alaqar REIT at RM 1.34. We also bought some AUD due to its weakness at RM 2.83 level.

With its consistent pattern of earning grow and within a lucrative industry.   Together with the increase of disposable income of female gender.  We like EIG with its current pricing and it’s PE of around 10.

We sold ABC and CCB today again. We are happy to park our fund in HKD trust account. We believe USD will resume a slight uptrend when US start to raise interest rate modestly. We expect HKD will hit above HKD 0.470 above vs. RM