Revenue increased close to 30% and profit almost double. With EPS almost 10 cents per quarter. A consistent result will bring Tasco fair value to almost RM 6.00 with 15 times PE. We re-rate our our hold to buy call with a review target of RM 4.00. But we do not suggest a strong buy instead a gradual reward buying style. We will mildly add some into our portfolio. If result consistent we will add more quarter by quarter basis.

Greenspan, Jim Roger & many increasingly forecasted a crash in the market sometimes soon. However, FED is confidence that things are in control and continuous reduced its bond purchase further. We are always a firm believer that too much money printed. Things not looking good but is not this year.

We believe the bull has not stopped and will go further from here to at least mid of next year if there is no unforeseen circumstances. On KLCI front, we have been long on dip and covered back with 5 to 10 ticks profit. We will continue to take this opportunity to buy if market pressured and long spot month contract. But we try not keep any contract open to next day. Immediate support at 1850 to 1860 and strong resistance at 1890.

One of our top pick has done RM 2.40 even at a difficult day when Argentina defaulted and Dow Jones has some earnings missed. It has faster than we expected for the price trading at this level. In long term we still optimistic about Kawan and we expect a 15 times PE with improve EPS to RM 0.20 per year in 2016 if not 2015. Thus, mid to long term target to cross RM 3.00.

The default is due to the disagreement between Argentina and the creditors. Market will not crash due to known problem. This will be a good opportunity to buy into the market if you have missed some boats lately. We will buy into the market and long a contract on August today. If there is first to default is always US.

We continue to like L&G, MNRB, MBSB, KAWAN and buy on any dip. We maintain our view that no major crashed is expected in 2014 with known issue unless otherwise.

Up to this week, most MREITs has performed slightly better in their earnings except TWREIT and AHP. Others are on path to our long term growth of 5 to 10% capital growth. Average yield of 7% to 8% after 10% tax. Most MREITs are within our expectation even we still like TOWEREIT. But we suggest not to add on AHP due to its sluggish performance for several quarters. We are satisfied with the results and continue to build up our income portfolio at this level.

We have started holding HOVID months ago with a mid to long term target at RM 0.500. However, rumours and profits increased triggered activities. The price has since trading at now RM 0.460 above which is more than 20 times PE. We decided to reap this quick profit. As the upward trend persist, we will sell slowly from this level.

Speculation on dry season will drive to be announced Spritzer earning top estimate.   Spritzer has added more than 10% in recent 2 weeks.  We also see buying by its major share holder.  However, it has traded above our prefer price earnings ratio.  Though we believe the upcoming result may be better.  We have sold some and switched to Qcapita.

After years of challenges to be profitable when the world aviation industry changed its landscape with low cost air lines emerged. MAS is now facing even a more tough uphill task after MH370. MAS still has its brand value after years of excellent services and awards. Problem is the challenges to be profitable.

Things already happened and there is no turning back. Personally, to pump more money into MAS looking for immediate turn back to black is highly challenging. Be it the confidence is still with MAS from its customers. The impact and resources to be included for both MH370 and MH17 are going to be huge and possibly prolonged.

We believe the best option for the moment is to immediately downsize. Reducing the size but carefully settle its Unions members. Help them to relocate jobs or with reasonable compensation. Clear of all debts and restart from zero. Maintaining the brand and wait for the right time to expand again. Be it into low cost air lines segment or highly luxurious market segment. MAS just need to be paused for a moment. Don’t listen to any new corporate plan or proposal. You need to take a rest before decide again.

If MAS not intend to maintain its listing status. Give a reasonable exit plan for minority share holder. Keep OPEX low and wait for the right chance again. Sometimes the best strategy is to do nothing and wait. But I still have a strong believe in the branding of MAS.

My heart is with the victims of MH17.

Another sad incident that cause us a very sad day.  Our heart is also with all MH 17 passengers, families & friends of those on board. 

Market will react negatively to the incident. Perhaps MAS and insurance related companies again.  Fundamentally, we will long the market when dip.  Emotionally we will support the market from our part by buying into the market.

Support of KLCI at 1870 and buying into any dip of insurance company again namely MNRB and Alliance.

While majority stocks in the market is moving towards market 15 to 16 times on average trading price.  Many non active and undervalued stock in term of PE and trading below NTA are getting attention.

Cheetah, Lay Hong and Success for example are getting more activities lately.  We believe the prolong bull will extend to at least 2015.  Thus, many of this categories stocks may perform well in coming months. 

Others like Tomei, Poh Kong, Innity, FocusP, Analabs may attract gathering interest ahead.