Market Outlook for the Month

Speculation is very tempted when coming to huge short term game, alot people though they can outsmart the market. It is just like a gambling and passing a time bomb from one speculator to another and earn the bucks out of their pocket. Fear & greed will ride the euphoria all the way to the sky. Whereas, value investing is a win-win situation between company with loyal shareholders. Investing through waiting the company generates earnings funded by normal business activities. Stick to a good company and hold for long term is the only way for unbeatable gain. When u understand the value and price u pay out of the figures beyond the balance sheet, you will do things differently. (Jacob Chong, 2012)


Pasukhas has made a decent return for speculator for these two days. IPO price of rm0.12 surged to 0.62 on its debut before the closing of the market.

Some syndicate is trading on their own table, there is less likely have genuine buyer at this price level. P/E ratio reach 120 times. Despite bursa malaysia has query on the unusual market activites (UMA) on the company unusual volume of share trading. The market still allowed it to trade and further hikes up to a higher level of rm0.83/share and plummet back to rm0.70 before the market bell rang.

This is the most crazy IPO i have ever seen. Speculator made a 5 folds return in 2 days. This is a WOW! Nobody dare to dive in for a counter. This is a pure gambling, wonder where has the MCCG code in practice. When the music stops, the ball ends, and soon the bubbles will burst!

 

My current portfolio holdings

Will be looking to  hunt some good quality REIT in upcoming investment. Since the KLSE index has reached its euphoria of 1,646. Wait for the bubbles burst and shopping at a bargain hunting price. With global uncertain economic event, my ears will be on Ben Bernake at Jackson Hole upcoming speech then decide future investment decision.

Looking at upcoming IPO, will park some of my fund in ASTRO. Since it is a monopoly player and has a promising dividend policy of 75% of their earnings distributing to the shareholders. Wait the cash cow system works, not more than 2 years, i will have adequate cash reserves to march my fund to property market. 

EPF has channel fund to its special purpose vehicles (quasi subsidiary) to loan out the fund to younger generation to afford to buy a house. They don't need to pay any upfront payment for house below rm200,000. This makes the property more affordable and further hikes up the prices. All these is taxpayers money. They may default the loan repayment and soon the bubble will burst. The property mortgage will soon becomes toxic asset. Citizen retirement fund may not be secured. This is totally bad for economy, the sub-prime loan crisis of US is created by this way. Most of the property in Malaysia is speculated by high net worth foreign corporation and less likely is genuine house buyer. Government should charge higher RPGT to speculator instead of giving out a loan to young generation. The property price needs a cooling off. Otherwise, a graduates with average rm3,000 salary/ mth couldnt afford to own a house in the future.  

I am so blessed that i have investment awareness ahead of my peers. I need not borrow fund from my parents to afford a house in the future. Live frugaly and delay gratification.  I will laugh at the bank when the time comes!

We spend money that we do not have, on things we do not need, to impress people who do not care.” -Will Smith