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.

We have our strategies defined in 2011 https://joepoh35.com/2011/08/25/5-ways-to-select-a-good-value-stock/

However, we found that it is imperative to add on 3 more values on top of our top 5:

* Catalyst in coming 6 to 12 months (will be priority)
* Holding time depending on yearly review.
* Cut losses and switched to new picks if wrong

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1. Company Business (Does it got a brand? Are they competitive? Their industrial outlook – Growth)

2. 1-3 Years Earnings per Share (EPS) / PE Ratio (Preferable below 10, if higher, you need to justify to yourself)

3. Governance / Management (You may likely not to know, but put at least surface analysis whether do they have a system)

4. Dividend Yield (It is preferred to beat current interest rate to ensure that you will continue improve investment cash flow)

5. NTAV (Understand its current asset values)

It is always our view that USD is not supposed to be strong.  For whatever reason even if FED is going to raise rates few times which is impossible in short to mid term.  The rate is still ultra low as of now.

We still believe RM fair value at RM 3.50 vs 1 USD is a fair value.  Crude oil at USD 60 is a fair value and Gold above USD 1300 is a fair value and KLSE should be above 1700 as of now.

However, money flows in and out not just Malaysia but the world market in large scale that affected the sentiment.  As of short term, the current trend will persist.  But we will be in contra position.  just like when we buy overseas currencies when RM is strong.

RM and market may still be weak. However we believe certain fundamentalists may enter the market to take advantage of the recent Fall. We will buy next week as well.

May stock masters in Malaysia may have missed AHEALTH. a consistent growth Healthcare company which we have invested since 2010.  a strong compound growth with Dividend.  We are still holding the stock as of now and we love to continue Holding the stock.

With its revenue and profit both consistently adjusted upward.  EPS of 11.74 cents will provide an PE of 13 times and above. Our call is to add on during weakness. Our target remained the same at above RM 8.00

We continue Holding on Tasco as the stocks continue to grow modestly even in current difficult environment.  A fair value of conservative 12 times should be minimum at RM 1.60 above.

Flooded with news and perception that the market will fall and crash. however the market did perform well after Trump elected. The fierce forces of short selling covered perfectly and closed with record high for DJ.

A clear divide also happening in the financial market. In this scenario, staying neutral should be a good stand from now on.  Personally I have a different view with Jim Roger that the market eventually may crash if the world Debt issue is not resolved. But it is definitely not at this point in time. May be not even short to mid term.

Everything looks not so bad and even bullish about a possible reform by Trump may can help US economy.  If Trump is to modestly execute his promises that can sensitively accommodate all Americans.  We may need to upgrade our 2017 outlook of the market. We listening to the rythm of the market…