With recent sustained profitable quarters with a EPS above 12 cents. This give a PE less than 5 times at the moment and NTAB above RM 0.70. Macro view on local industry does not favour a super charge on property industry perhaps even more curbs from government is expected.

However, with project on hands and a few new launches in next 12 months. We believe L&G can continue create sustain stable revenues and profits in 2014 and 2015. Thus, we reiterate also a buy call on L&G with a min target price at RM 0.80. Gradual accumulation is recommended with modest investment ratio only.

If BNM likes to see more merger into giant entity for the local market and competing regionally. The most likely remaining target for M&A should be Affin and AFG in term of size and relevancy. Unlike Aeon Credit where there is a co-survive focus market due to Aeon Co and motorcycles industry.

With Affin taken over Hwang DBS in the recent M&A exercise. We believe it will be challenging to immediately take on another M&A in near term. However, this create a good chance for accumulation. In term of market price and its NTA. Affin has an edge over AFG on pricing if base on the 1.75 book ratio suggested by market analysts.

With a M&A potentially 6 months to 12 months ahead (if). We believe now Affin should have a target of at least RM 5.00 base on 1.75 times of book ratio. We did not go for its right issue at that time due to our view of over price on Hwang DBS. But with the wave of financial M&A triggered again. We will add on back Affin in months to come.

If base on 1.75 to 2 times book ratio for CIMB to acquire MBSB and RHBCAP. OSK will have a NTA of 25% adjusted upward easily above RM 3.30. OSK can be the ultimate winner if base on its price from RM 1.750. However, we do not like OSK too much due to its major shareholder historical attitude towards its minority share holders. We recommend gradual selling OSK from RM 2.20 upwards. Do not wait for the highest price to sell off.

We believe it is a moderate move which can be effective on inflation and debts. I agree this is a good time when economy growing healthy both locally and worldwide. We also need a stronger currency in anticipation of reverse US FED rates policy. However moderate negative impact will be on property and auto industries.

Stock prices started active particular for MBSB and OSK in recent days. MBSB crossed RM 2.30 and OSK RM 2.00. Since Nazir Razak has been appointed as chairman of CIMB and director of Khazanah. The sudden suspension of three counters CIMB, RHBCAP & MBSB sparking an early unexpected M&A.

It can be potentially CIMB becomes the biggest umbrella to swallow RHBCAP and MBSB. At what price, in what manner and who will be in control will be in focus. We thought MBSB initially will drive towards a bank license before any M&A to take place. This will drastically increase its value back to EPF.

From the active trading of OSK, there can be a potential that OSK will be offered an exit price to this M&A. Alternatively, it can be also offered the final share after M&A.

We are holding RHBCAP, MBSB and OSK shares. We should be benefited if the perfect merger is really to take place. Of course, it can be nothing but we still continue to hold these counters due to its undervalue trading position in the market.

https://joepoh35.com/2014/05/16/mbsb-we-revised-from-hold-to-buy-with-a-target-price-of-min-rm-3-00/

We decided not to pump in fresh capital into Paramount rights as we have bought up to our comfortable level of stock. We sold all Paramount rights at RM 0.370 and exchanged all to its mother share at RM 1.500. We continue to optimistic about Paramount but we will monitor its quarterly result before we adding weight to this stock.

We have been taking advantage to long on dip. Sell on rebound trend for KL futures.  As short to mid term we believe KLCI will seriously test 1900.  Giving an opportunity to profit from persistent buying of Bluechip.

We believe the current volume and KLCI character is building a base between 1870 to 1890.  When Worldcup final playoff is done.  We expect more activities return especially even Hari Raya is over.  A strong challenge at 1900 level can be expected and we believe it will happen.  Follow by more mid to smallcap advance after stabilise at 1900 above.

This year worldcup event is nothing special with certain unexpected results happened in the early stage.  Italy, Spain and England are the earliest unexpected dropped out from the league.

Some unexpected results like Costa Rico, Columbia, Algeria, Belgium & etc.  However until semi final normally will be the favourite teams likely to be the finalists.  This time is German, Netherlands, Brazil and Argentina.

Similarly in finding a good grow and quality stock.  No matter how much speculative can it be.  End of the day a good stock will only help us to win big and consistent.  Thus, Bluechip and quality growth stock are always our main and save picks for focus investment.

Obama said the job grow is fastest since 1999. Unemployment drop the most in 30 years. Everything looks great with interest rate is about to trend higher. Stronger dollar and stronger market. We see the market will push towards 18,000 in the second half. Asia will follow through as China will recover its growth. I think we will see a major bull before a critical pull back in 2014 and 2015.