Another clear segment of how speculative money can move things. Once from USD 2K to USD19K. Now back to 4K or perhaps may be even lower. 2 indications over here.

1. Buy value

2. Fundamental has dead for short to mid term.

We have bought substantially lately and we believed the market is oversold. We bought CIMB, MBSB, Jaks, GENM, Pantech and AirAsia. We think year end window dressing and January fund repositioning will general lift the market. If without a major crisis that market should perform a mild recovery.

With yesterday announcement, MBSB will have an estimated 10 cents by 4th quarter of it’s income. For a 15 times PE it should valued at RM 1.5. The merging cost and conversion of loan to full Islamic may still cost them a few quarters. I expect should be fully ended plus some capital expenditure when moving to New product lines.

I think is not easy to compete with the big banks thus niche market grow is required.

Citing new products contribution, consistent loan grow and completion of impairment plus merging cost. MBSB Bank is still a buy for me. I do think there will be a easy factor to move it above two.

Oil prices rises above USD 80 for Brent crude. However, world economy is growing, usage is increasing, production is either same or less due to sanction of Iran. When there are not much demand and supply. Why does oil price goes up and down? Is just another signal of dead of economics theory as it is control by speculation and manipulation.

Market opened the day with severe sell down on Genting and Genting Malaysia. Yes, gross tax increase of 10% plus license RM 30 millions is significant. But it should not promote a sell down to this level. Perhaps short selling increase volatility but a great chance for us to buy. We bought average Genting Malaysia at RM 3.30.

We see not much impact in term of good or bad on our portfolio. Our main holdings MBSB, CIMB, MAYBANK. Our growth stocks holding on Apex Healthcare and YSPSAH will be still on target to grow. But we have bought in quite a lot of undervalued stocks lately.

We will put a little attention back to impact investment. Besides of financial industry of Malaysia. We always like tech but that’s not much good tech in Malaysia.

Our other segments includes healthcare (but not overvalued), agriculture, climate change (green related) and tech.

We bought in HHHCorp and Bioalpha holdings. Undervalued like JAKS, AYS, Pantech, Rhonema and Ken.

If the data is correct. This means we do not have that much of money to spend. But more exclusive caring to all different levels. Most important during the current unstable currencies market. Ringgit may emerge to be a very defensive one. That can be helpful to the stock market when rebound.

I don’t know how long but I think it will still need sometimes after recent correction. But I would suggest buy on value. Especially those with consistent dividend yield.

A typical bear market will correct 10% from high and in a crash will be 20 to 30% in days. The is already happened and only Dow Jones still got room to fall.

But this is a good time to invest !!