With the contracts on hand and also the water concession deal with Selangor government. No matter on or off still give Puncak a minimum value of RM 3.50. On the other hand, Gadang contracts on hand still can keep them busy for above 2 years. With its intension to moving towards recurring income. We are optimistic the current price level good to re-enter and hold it for mid term investment. We like Puncak at RM 2.60 and Gadang at RM 1.40

Due to A shares soaring interest in recent months has caused Emperor Capital crossed HKD 1.2. That is a whopping close to 200% capital increased for our investment just weeks ago after our disposal in China Water. We disposed half of our holding as PE reached 13 to 14 times.

KLCI should find a strong support at 1700 as it has corrected closed to 10% from its recent high. Oil prices affecting confident level of our budget and economy will continue. However, as OPEC made statement that crude at USD 60 a barrel is their will. We don’t expect oil crisis will further dampen the market. In fact is a known issue where Malaysia is still biting the bullet during the change process of over dependant to oil prices.

However, we believe RM will continue to stay weak due to the room to raise rate may minimized by GST application starting in April. Slow retail confidence will cause BNM to reluctant adjusting its OPR. We may still see an interest rate increase to calm inflation and stabilizing RM. But we only expect 25 basis points in 2015 with a max of 50 basis points.

The sudden drop of KLCI due to oil prices tumbled is not within our expectation. Indeed, we still cautiously positive about the market especially our top picks. We will continue nibbling if market correct further. But due to RM exchange disadvantages, we will temp reduce investment in overseas especially HKD, SGD and USD related.

We will still buy AUD due to its weakness in parallel to RM but with slower momentum. We will buy more Gold at this level. Nothing to be too worry as our cycle investment again creating a rotating opportunity for our own self to continue buy cheap and potentially profit from it.

We don’t like KLCI component stocks as many oil related companies are over rated years back.

But we do like our top picks and we added Paramount & L&G.  But we think Gadang and ARREIT have been beaten down unfairly.  We have bought both and re entering Gadang due to its bargain valuation.

Probably the worry is the budget was base on higher oil price perhaps around USD 90 – 100. Dropping oil price means we may short of budget plus weakening RM may dampen surplus.

We believe logically there are certain impacts but also may come back with certain advantages. Businesses may grow further due to lowering cost contribute back to the pool of taxes. As long as crude oil trade above USD 60. We do not see any major issue but if continue to drop below USD 60 may trigger threats. But OPEC will also wont allow oil price to continue drop to below USD 50 which is a level unseen for many years.

We don’t foresee a huge issue but start to remain cautious on oil. But we may take opportunity to buy into our top picks or heavily beaten down stocks.

Among our long term holding positions, we found results are flat to mixed. But still with a hold call however new stimulus is required to boost their earnings. We maintain a hold call for our portfolio below but without adding weight.

OSK 5.8 Cents
TROP 2.12 Cents
Manulfe 2.77 Cents
A&M 3.16 Cents
Success 6.45 Cents
Plabs 0.33 Cents
Multi-Sports 1.5 Cents
Bonia 1.61 Cents

MNRB as our top bet among our top picks delivered flat but still consistent profit at 13.40 cents. It is still to us a strong buy call with a min target price of RM 8.00 if base on15 times PE for its peers.

On the other hand, Lonbisc 2.91 cents EPS is consistent. We maintain also our buy call to Lonbisc as it can be a second Kawan on its way. We also having a buy call with a target at RM 1.00 above.

A fairly strong result that will signal a potential mild rate increase next year. If trend persist with China reducing its rate, Japan, Europe loosening monetary policy. A super charge bull market may appear if Europe, Japan and China economy return to normal growth. We start to suspect the normal cycle of major correction may not come at least 1 to 2 years from now.

We suggest stay invested with asset oriented, agricultural and climate change oriented counters.

With a 9.42 cents profit announced and accumulated 3 quarters for 27.92 cents. A fair value of RM 5.00 is a safe guess towards the last quarter. We suggest a continuous hold to Hap Seng Consolidated until above RM 5.00

White Horse reported close to 20% increase in revenue and profit. A close to RM 3.00 valuation can be only fair to White Horse which has a strong branding plus consistent results.

L&G with 7.92 cents EPS is a strong result. But we think that can be certain one time clocked profit. But with half year 12.7 cents and potentially above 20 cents a year. L&G fair value should be higher than RM 1.00. We recommend a strong buy in L&G.