Revived and Overhauled

20 April 2019

Dear Fellow Investor,

We wish to thank all of you who attended our Investors Club meeting today at Phillip Capital Mgt. We hope you benefitted.

For those who did not attend, below is a summary of the high points:

I opened the session with Good News for a Change by showing today’s Star headline

“Revived and Overhauled”

Bandar Malaysia  will be transformed from a  money black hole to a revenue generator. It will house 10,000 affordable homes, a people’s park as well as a tech sector from China housing Alibaba and Huawei

This will benefit some construction counters and stimulate the economy.

I then shared the catalyst which could revive the market.  CPO- if crude palm oil  starts to recover and China steps back in the market over 100,000 small holders will see their incomes improve. Spending will increase when they have more money in their pockets, political tensions will ease and plantation shares will advance. Already some plantation counters are forming support and not declining in the face of the onslaught of bad news. The Felda bailout will also benefit the small holders who represent 55 parliamentary seats.

When a market does not go down on bad news it means the bad news is discounted.

Fund Manager Kevin  and analyst Angelina gave a briefing of the rubber gloves sector and detailed which counters offer  the best risk versus reward opportunity.

Kevin also answered  a question about property market recovery. He said Bank Negara must ease credit to stimulate loan growth  before property can recover.  It may take several months. Insiders are now buying bank shares as reported on Bloomberg work station. When loan growth picks up, bank shares will recover. Insiders buy on bad news and fear.

We plan to hold the investors club on a monthly basis and will let you know when we will hold the next meeting in May.

Any feedback is appreciated.

Invest well and grow your wealth,
Bill

Critter of the week is a dog back from the dead:

It's alive!' Dog digs out of OWN grave after owners thought he had died

A DOG digged himself out of his own grave after his famiy buried him alive – believing he was dead.