We will continue buy into the market with our top picks.  We will utilize a buy on weakness strategy.  As we advocate a world recovery before the next crash due to debt. We believe it can be years after this recovery.  The recovery will be mild and by stages.  Thus no rush to buy heavily but gradually when weakness prevail.  Asset oriented, Green, Food, Tech and agricultural remained our top picked of all industries.  Whereas special pick on MBSB, CIMB and EIG remained main focus.  

Unemployment down 0.3% to 4.6%.  If US and China both largest Economy of the world into recovery. Isn’t it a good fuel for world recovery?  A greater chance for 2017 to be a better year than 2016.

As market continue weaken due to RM weakness.  We bargain hunted some Amfirst and MBSB. Affin reported continuous stable profit.  We continue our buy call with a target min above RM 3.00

Oil spike 8% after OPEC agreed cut of production.  A reasonable oil price at USD 60 above does support growth in oil production company like Malaysia.  If oil price is fixed and US the largest Economy grow. Isn’t It will lead the world Emerging markets towards recovery as well? 

We are always supporting USD is over valued.  For an expected 25 basis points hike is not justify for a strong run. Even Trump won is yet to show a total revolutionary package for US economy.  More important Emerging market currencies are not weak as declared by some punters.

However, the trend of the force is towards weak Emerging market currencies. We think the strong US dollar may be near it’s peak again.

New improved earnings will invite fresh buyers for the counter.  With a persistent support at RM 0.500 and we suggest that new support should be above RM 0.600.  We are still holding 50% Balance of our previous investment. We will dispose if price is right continuously.

It is a evidence that there is a force behind all these.  It is immense and powerful that can defy the actual investment rules. That’s why the market will always kill the smarties.  Balancing yourself and rip profit from any trend is the only long term approach.  We think a quick bubble is forming. But will it burst is a question hard to call.  

Third quarter with slight improve in both pretax and revenue is on target.  Impairment ratio at 2.91% and corporate ratio over retail is improved at 19:81. On target to 30:70.  Overall registered a noticeable margin across all segment.  We hereby continue our buy Call below RM 1.00 with a target of RM 2.00 above.

We are not a so free market anywhere. Why not we packed it at RM 3.80 again?  This only create problem for short sellers but benefits majority.  Although I am not a fan of Protectionism but in certain time. This can be a good solution.

We bought more MBSB at 925 and also exchange further with L&G also at 925.  We decided to dispose L&G as we do not like it’s excessive corporate exercise.  MBSB at the current price vs our targeted price above RM 1.80. We believe it is a good deal.  

24th Nov will be the date MBSB announce quarterly result.  We hope there will be a surprise or we shall wait further until it’s alignment of NPL to 3 months as same standard as bank.

Rumour from the Star that MBSB may merge with AFB.  However, we are more supportive to MBSB directly apply for a banking license rather than buying a not so performing Islamic bank just for its license.