Thursday, November 05, 2009

No, Not Lost In Space ...

Readers of this blog may have been speculating that I might have been abducted by aliens or taken away to Sg Buloh for some "gentle questioning sessions" - ... actually hopped onto a plane and have been in Sydney, still am... do not have access to the internet, so the postings will be infrequent.

Thankfully, there is the monthly asset class returns from The Capital Spectator - gives me something to talk about without too much work.

After a long period of flattish performance, commodities have started a move last month. Though it may sound silly, I think it is VERY EASY for this kind of asset class moves to turn into a wave, go long on CPO. I do think the rumour of Sime Darby selling 10% to China-interest has a high degree of credibility - and of course it is very good for Sime Darby. Though I did not like many of Sime Darby's M&A and subsequent integration plans, it is still the number one plantation company in the world. Many also may not be aware that it has been building very important port facilities and have a few very exciting long term ventures in China already. Let's just say that Sime Darby may be reinventing themselves to latch onto China as the platform for their next growth phase for the next 10 years. Yes, Sime Darby is a BUY now, no time to do a "Why I Like..." but close enough.

Curiously though, there have been more interest in bonds and relates papers last month according to the table. More significantly, the REITs have showed signs of weakness after a spectacular run for the past 3 months. This may indicate that we may have recovered from the lows, now the euphoria is over, some of these REITs are still showing tremendous leverage and debt difficulty.

p/s photos: Jocelyn Lukos

1 comment:

Junsan said...

At last u r back, its like nothing to feed in without any of your daily articles.