Coming ECS AGM

8 May 2017



Dear Fellow Investor,



On 17 May, I will be attending the ECS IT AGM to be held at the Tropicana Golf Club at 10 30 am. For those who hold ECS in your EPF/ managed accounts, I am happy to get you a proxy form from our trustee so you can attend the meeting but you need to let me know by Monday.



I personally know the MD and his son who is an MIT graduate in computer science. They will explain the ICT trends moving forward and this will explain why we need to focus on these trends to align ourselves with what is making money.



Semiconductor stocks such as Inari are making new highs as well as many other technology companies around the world.



ECS IT is a driver of Malaysia’s digital economy and distributes products from Apple, Huawei, Lenovo, IBM Samsung and all the major ICT companies.

Unlike the ICT trends, other trends are not presently in our favour: These include traditional brick and mortar businesses, oil and gas, plantations and commodity related counters.



Some of the counters in these sectors have made new highs and there is a high degree of complacency and supreme confidence. Value is difficult to find. I suggest taking profits as we did with Press Metal



Headwinds include the recent rise in China interest rates and credit tightening which caused a crash in industrial metals/ materials such as coal/ copper/ and iron ore. The CRB commodity index is now down to the same level before the Trump rally.



I read that to buy a big house in Bejing, you need an 80 % down payment and a small house is 60 % The authorities are cooling the speculation.


There has also been record plantings of soybeans, corn and wheat in the US which will put downward pressure on palm oil.

The CRB Index which represents a basket of world commodities is in a fierce downtrend.

As commodities are cyclical, they will recover but in the meantime focus on what is making money now.



I am adding a momentum mandate to diversify your investing portfolio . Obviously the shares that come up on our IVSA(Volume Spread analysis) filter must meet our high investment standards but we add the filter of momentum and line change to increase returns.



When I bought Gas Malaysia for you a few months ago, I bought on a line change and increasing volume. Risk was low compared to potential reward. Gas



Malaysia is also a high quality fundamental counter. Once I get clearance from our compliance, I will forward you a mandate letter to sign so we can proceed.  



Invest well and grow your wealth,
Bill

A Bali Mina bird which is highly endangered. THere are only a few left in the world. There are some in the Negara Zoo.