Monday, June 24, 2013

Update on My Portfolio

Another post only after 5 months, how to "cari makan"? However to my surprise the number of followers is increasing. What a boring blogger still manage to pull followers.

I disposed my Allianz due to it is fully valued currently based on my valuation, nothing wrong with the company.

I bought some CIMB as the dust already settled. Still opines that it is not fully appreciated as a regional bank by investors. I believe that a regional bank shall fetch a higher PE valuation as compared to a normal local bank. Although one can argue that Maybank is also on track to be a regional bank, which is traded at comparable PE with higher dividend. But one should notice that Maybank is following what is done by CIMB. So why want to buy a follower instead of a leader? CIMB is evolving constantly to realize its ambition to be a regional bank, which is still at infant stage. I foresee there is still more room to grow. Personally I like growth, I like a company able to grow meaningfully in years to come. It also keep streamlining is core businesses and improve its operational efficiency with CIMB 2.0 programme.

My favorite, Hartalega, is flying, hope that the sky is the limit. With NGC already move a big step forward, market appraised immediately with a even higher PE valuation. It is set to grow for years to come with this NGC, which is quantum leap. I said it is a quantum leap which it is, because instead of following what other glove makers did, it plan to multiply is capacity in a single plant. Other glove makers normally plan a plant follow by another plant with normal capacity expansion only. This how I valued Hartalega's management, I don't see a close fight in this sense. Some more NGC will also the most efficient plant by industry standard. Top notch management! It set the standard for others to follow, which I don't think others able to duplicate.