Friday, February 18, 2011

Comment and opinion

CNY is over, have to back to business as usual. Vet through most of the analysts' top pick for the year of rabbit. Surprisingly only one research house has picked my favorite counter - Hartalega. Only one analyst in The Edge highlighted Allianz, none has pick Public Bank. Ha..ha... what can i say? Absolute nothing. Most of the analysts tried to pick a winner for a short period, they need to prove themselves in a short period to build up their reputation or so that they are able to come back next year telling what their buy list for the following year. Is all different strategy at all. My strategy is to pick up stocks that able to generate substantial profit increase for the coming years. Sometime the stock i bought does not "move" for more than a year, but i still stick to it. Eventually it did move up and achieve the return i wish.

So do i have the pick for this year? I also don't know, as i most probably will stick to my holding or add my position in Hartalega and Public Bank. If market presented a good buy, i will take the opportunity. There are nothing cast in stone. I also follow closely on the saga of Hong Leong Bank - Eon Capital, it look like the deal most probably go through at the expense of Primus. HLFG appear to be the eventual winner.

CPO price is close to its historical high, however the plantation stocks did not enjoy the rich valuation compare to 3 years ago. Maybe investor already aware that no matter what it is still a commodity and cyclical in nature. Besides, there are no value pick at the surface, as i seldom buy these kind of stocks.

The Greater KL unveiled by the PM is making its present, property stocks are rising. Soaring property prices is good for those already vested, bad for the awaiting to get into it. Maybe i will try to get one more for this year, as the prices of future years appear to be more scary. Of course there are so many argue that there is a bubble, i only partially agree on it at the selected locations. Soaring prices is not equivalent to bubble, affordability is the issue.