RCECAP business model
- provides loans to civil servants and, through a comprehensive approach to repay the money deducted monthly.
Pay Rise, Better Economy PDRM pay increased
- PDRM's salary adjustment made 98,747 personnel happy with each pocketing home RM1,500-RM6,000 depending on rank and the salary matrix schedule.
- Malaysian Armed Forces'(ATM) request for a salary adjustment.
- New Economic Model(NEM), with ambitious GDP growth.
Stock Focus (see graphs)
- Frequent spikes
- Supportive recent announcements
- Strong Fundamental (increasing revenue + profit)
DOW JONES is moving forward with steeper momentum this time compared to the uptrend last year (see chart). Bernanke has reaffirmed his stand again last month that the interest rate has to stay low for a lengthy period to counter unemployment rate..
On top of that, DOW JONES will be releasing financial quarter reports next month. We definitely will be seeing at least equivalent good or better quarter reports.
Moving east to Asian countries, we see some measurements have been taken to cure these countries from inflation. In another words, Asian economies are doing too well for too long, and not going to wait for the western countries for recovery.
Back home, Malaysia hiked its Overnight Policy Rate (OPR) from 2.0 to 2.25 few weeks back. This step was taken to normalize the economy to calm down the strong economy growth. BNM expects a grow between 4.5-5.5% this year. Commodity like crude oil, cpo, rubber..etc. are back on high demand.
Well, we are still far away from the OPR rate of 3.5, which was steadily set before the economy crisis. OPR hike of just .25 is a long term remedy to slow down the economy growth. We won't feel it until a few doses being injected. (many months later...).
Unclepicks still thinks that the DOW JONES will further strengthen especially for the months of April-May, in conjunction with the quarter report releases. Also, locally, we will have New economic model (NEM) announcing end of the month. As usual, the big boss DJ will create a nice sentiment for the global markets to follow. Some small/mid caps in BURSA with solid fundamentals are gaining momentum, and quite attractive at the moment.
Let's hope there is no surprises, similar to Dubai or Greece problems happening in coming months.
Bought MYEG at 0.430 in anticipating a "feeling good" sentiment. MYEG has stabled > 0.40 since May 2009. Take a look at the quarter reports, revenue, and profit not just solid, but improving. 52 weeks low 0.370, high 0.560. Two spikes spotted on Oct 2009, and January 2010. A solid GLC company selling you at PE 13, good deal?
Bursa raced for another +15 points last Friday after OPR was raised 25 basis point. Petrol subsidy system was scrapped. More good news are expected for the people, especially for East Malaysia as the Election is near ;=)
On the other side, DOW JONES has been slowly marching to the NORTH. Positive jobs data released last Friday added another +122 points for the DOW. Unclepicks is optimistic. DOW JONES has to catch up with the strong financial quarter reports released last month.
Maxis EPS dropped to 6.70 from 8.20. Selling MAXIS to balance cash ratio.
SCOMIMR fell sharply yesterday. Unclepicks will not hesitate to buy again at ~0.35 . Have you forgotten that SCOMIMR profited S$61.5 million from selling CH Offshore? What will happen to the coming quarter report?
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