PROPERTY PLAY & NEW ECONOMIC MODEL

Today we saw the property counters started to move up.

Is this link to Malaysia new economic policy( NEM ) that going to announce next week ?

Will Iskandar benefited from this NEM ?

Just Wait & See !

MARGIN OF SAFETY & +VE CASH FLOW

I find it hard to pick a good undervalue stock now compare to months ago as the price ( most of the good stock ) has recovered from low and reach 12 months high.

We must make sure that our pick now must meet the 'Margin of Safety' investment pronciple :-

We must ensure that the market price of the stock is lower that it's NTA or it's intrinsic value or the fair value of it's assets.

AND

The company MUST :-

1. Low Debts
2. Cash Rish
3. The ability to have positive cash flow from it's business operation.
4. Profits making capability even during difficult time.

My Comment in Nexttrade.blogspot on Property

Last year we see developer introducing 5 : 95 scheme to attract buyer during financial crisis.Now I have encounter high end developer using 1 : 99 scheme.IF the property market is really good, there is no reason they use 1% scheme.This only shown that the market is really not good. Not Good at all.

Wednesday, March 10, 2010 10:30:00 PM

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Time to look at Property stocks

The property market, which staged a steady recovery last year after the slump in 2008, has now gone in overdrive. Some condominiums projects, which were launched in the past few months at exorbitantly high prices, were easily sold off. Properties in desirable location has enjoyed appreciation in value of 15-20% over the past one year. Despite the expected rise in interest rates this year, property developers are fairly confident that their sales will not be seriously impact. In view of this bright outlook, I think it is now time to buy property stocks which have not gone up too much. From Chart 1, we can see that the Properties index has not moved up by much. I have appended below the charts of my three favorites- Sunrise, Suncity & IGB (the latter has limited exposure to property development). I believe that all three stocks should see decent price appreciation in the months ahead.

General Election is Near !

I believe Najib will call for General Election very soon, he has release some Popular News & postponed some unpopular measures:-

1. EPF announcing 5.6% interest payment for Year 2009.
2. Announcing that Malaysia has recover from Financial Crisis. ( This is quite misleading as we have just recover only from crisis, not back to better growth yet.)
3. Scrap the unpopular petrol price hike.
4. Soon to announce the 'New Economic Model', creating 'feel good' environment for the voter.

Last but not least,
The General Election must be held before the implementation of the SUPER UNPOPULAR Goods & Services Tax ( GST )