VirtualPot Folio As At 8th March 2011

I am officially back into blogging after a month of festivities, holidaying in Koh Lipe, Thailand and catching up on some work. Due to correction on Bursa the gains have been cut from 19.3% to 12.4% over a month mainly from BSDREIT, FREIGHT and SUPERMX. Been getting some nervous talk by a few folks on me. Let me address them one by one. Not at all concerned as Bursa has failed the recent swing test and tech indicators expect to have some momentum into uptrend.

FREIGHT: One heavily undervalued small cap counter. Has shown good support level at RM1 with an extremely good sales growth of 25% and ROE of at least 15% over the last 5 years. This pick is second only to Genting. I would say this gem is still not in the radar of fund managers, if not the price would be much higher. 

GENTING: Annual report 2010 is out. A whopping 71% increase in profit to RM15bil (my previous forecast was a conservative RM13bil). It will continue to have good prospects possibly Vietnam and earning potential. Remains my top pick for a long term investment e.g. retirement. My fair value of RM12.25 still stands and is an undervalued counter.

SUPERMX: I like this because they are the most flexible among all glove players though the risk remains high due to increasing oil price thanks to occurring Mid East crisis. Nevertheless I remain upbeat for a soon to happen pandemic, growing middle class in EM and healthcare necessity in advanced economies. Share is at a discount and remains undervalued as long as it is below RM5.

BSDREIT: The main purpose of holding it is for dividend yield, capital appreciation is not the focus though it is a bonus if you can buy it at a discount to its NAV. A nice yield of 8.732% for 2010 (http://mreit.reitdata.com/) and is under top 3. Btw I don't think CPO is gonna hit RM4k MT so don't be overly greedy in terms of yield.

Btw I am preparing a special writeup pertaining to house prices in Malaysia, in particular Penang and my conclusions as to why the bubble has been in the making for years. Question is, when will it burst? Remember the States? It took them nearly 10 years to inflate the bubble until it finally went into a nose dive.

Disclaimer: The reports, analysis and recommendations in this blog are solely my personal views. I do not link to any investment body or company. As such, I will not be responsible of any of your investment decision. Consult your investment adviser or come to your own conclusions before making any investment decision.