Buy for long term at least 3 years from now

If you wish to enter the market. I would advise to buy for long term and especially cash flow healthy company with consistent profit. Personally I will keep buying on beaten down blue-chip with great dividend yield.

Too many fire points, 60% likely a bear until end 2019

From China US trade issue to Iran, S.Korea vs Japan, Brexit, Hong Kong fire point, Taiwan, N. Korea, Russia and US exit mid range missile treaty. Also our local uncertain politics. I think 60% chance can lead to another prolong slow down from any of these fire points.

We think some positive sentiment is building on KLSE

It will be great if US-China is able to settle the trade deal fairly. But RM is strengthening and corporate earnings are improving on the ground of most companies are expanding income source outside Malaysia.

We bought CIMB, GENM, OSK, JAKS and MBSB lately. We are on target to rebuild strong cashflow portfolio. If RM is gaining ground and we shall start to buy overseas.

We maintain nibbling but major ratio into reduction debts for investment

We bought GENM, OSK and SUNREIT mildly. Especially GEN will be our focus buying target.

However, as our strategy is to buy mild but reduce debts in investment with a much bigger ratio. We aren’t buying a lot.

But our strategy will lead to lower borrowings but still capitalize low price with dividend yield target.

Our cashflow investment model remained sound and we are growing gradually as off any situation.

US-China trade war can be a trigger point for a disaster

Personally i always think a trade deal is possible unless it is too demanding between the two.  There is still a high chance of 80% the deal i feel that will go through during the G20 summit in Japan.  However, a slight chance of 20% will trigger a long waited worldwide recession.  I am not in favor to bet any of the direction as the risk to trigger a super boom is there.  Thus, we will switched to highly defensive from now.  Reducing borrowings and debts will be priority and bring down ratio of debt below 0.5 times.

In summary we will not do anything except reducing debt ratio from now possibly until a better picture emerge.

MBSB to hold from buy as reduced profits and slow to increase revenue

We are a little disappointed to its cause of reduce profit due to again some loan credit losses. They should have improved their risk assessment before issuing loan.

Plan to increase revenue also slower than expected though we do see their progress by technology centric lately.

We will not increase our investment as of now until constructive improvement seen. But we do still have confidence in its strategy and plan for mid to long term. We like the 5 cents yield as it is fair to investor and it is still better than FD and some REITS in the market.

We sold some WCT and Gadang during recent run up

We have sold some we have bought with average cost of RM 0.8 and RM 0.6. We have reinvested our profit to SUNREIT. Whereas the original capital into GENM and MBSB.

In every moment there is always an great value stock to invest. As of of today we like GENM the most.

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