INVESTMENT NEWS FOR JUNE 2019 BY EAGLE VISION
June 6, 2019 By Calvin Tan Smart Investment
Dear Friends,
May 2019 has been a very bad month for Equities everywhere. Now we are in June 2019. What will the future months hold?
After pondering over latest developments from US, China & Malaysia we can come to One Conclusion
THE MARKET AHEAD IS FRAUD WITH PERILS & PITFALLS
Why Do We Say So?
These Are Some Reasons
- DONALD TRUMP FACTOR
President Donald Trump is waging a Trade War Not Only Against China but the entire world as he tries to Make America Great again. Trump is perceived to be a very bad guy all over the world among traders. Far from it. The truth is. Trump did not even take a salary from the White House. His intention is to help America. It is not Trade War that Donald wants. It is Fair Trade as he called it. True indeed. USA is now heavy laden with USD20 Trilllions in debt. How to balance it Unless Very drastic measures are taken. So Trump sets out to right the wrongs of wastrel years.
2. CHINA UNDER XI JINPING
Xi Jinpin has recently been given absolute power by the Communist Party. Not since Chairman Mao has such power been vested with one man. And with support of 40 Trading Partners from the recent NEW SILK ROUTE XI is embolden further to face a rising belligerent US.
There is a Malay proverb which says
“Gajah sama gajah pelanduk mati di tengah tengah”
When 2 Elephants Fight the deer died in between.
SO WHEN 2 SUPER POWER FIGHTS A TRADE WAR OTHER SMALLER NATIONS WILL SUFFER.
As of now there is an impasse and Donald hinted another coming USD300 Billions tariff against China
ALL THESE ARE BAD. GOING TO BE VERY BAD IN THE FORESEEABLE FUTURE
IT WAS THE HOOVER TRADE TARIFFS THAT EXARCEBATED THE GREAT DEPRESSION OF THE 1930S
IT’S LIKE THIS
TRADE IS THE FINANCIAL LIFEBLOOD OF WORLD ECONOMIES.
ANY BLOCKAGE OR BREAKAGE WILL LEAD TO DISASTER
IF A BLOOD VESSEL IN OUR HEART SHOULD BE BLOCKED OXYGEN SUPPLY FROM OUR HEART WILL BE IMPEDED.
THIS WILL LEAD TO A HEART ATTACK. AND THAT COULD BE LIFE THREATENING UNLESS RESOLVED
AND IF A BLOOD VESSEL IN OUR BRAIN IS BLOCKED IT MIGHT LEAD TO STROKE AND PARALYSIS
WITH THE UNCERTAINTY OF TRADE WAR MANY COMPANIES ARE IN A STATE OF UNCERTAINTY & PARALYSIS
BOTH HEART ATTACK OR STROKE WILL CAUSE A BREAK DOWN OF THE HUMAN BODY AND HE CANNOT FUNCTION PROPERLY
IF PROLONGED HE MIGHT DIE
SO MANY BANKS AND COMPANIES FAILED IN THE US DURING THE 1930S GREAT DEPRESSION
AND IN MALAYSIA DURING THE MULTIPLE STOCK MARKET, RINGGIT, REAL ESTATE CRASH OF 1997/8 OUT OF 49 BANKS & CREDIT COMPANIES LESS THAN 10 SURVIVED
OF COURSE DONALD TRUMP DOES NOT WANT ANOTHER GREAT DEPRESSION AS HE IS LOOKING FOR A 2ND TERM IN THE WHITE HOUSE
ULTIMATELY THIS TRADE WAR WILL BE RESOLVED
THE QUESTION IS WHEN?
FOR NOW THESE ARE SOME IMPORTANT STEPS WE SHOULD TAKE TO PROTECT OURSELVES
- KEEP AT LEAST 6 MONTHS CASH BUFFER FOR EMERGENCIES. BETTER IF YOU HAVE MORE CASH RESERVES THAN NOT
IF YOU HAVE LOTS OF CASH THEN DIVERSIY TO AS MANY BANKS IN MALAYSIA. EACH BAMK ACCOUNT IS INSURED UP TO RM250.000
SAY IF YOU HAVE RM1.5 MILLIONS. THEN DIVERSIFY INTO 6 BANKS. WHAT IF YOU HAVE RM3 MILLIONS. THEN PUT HALF IN YOUR SPOUSE’S NAME.
DURING THE GREAT DEPRESSION YEARS OF 1929 to 1939 WHEN OVER 1,000 BANKS IN THE US CRASHED MANY INNOCENT PEOPLE LOST ALL AS THERE WAS NO BANKING INSURANCE THEN
THOSE WHO HAVE HIGH VALUE ASSETS LIKE A HOUSE WORTH USD700,000 THEN COULD DO NOTHING AS NO ONE WILL BUY IT. EVEN IF THERE IS A PURCHASER NO BANKS WILL LEND MONEY TO THE WOULD BE BUYER
SO MANY RICH PEOPLE (IN ASSETS) SUFFERED BECAUSE THEY HAVE LITTLE OR NO CASH
IN YEAR 2002 ARGENTINA SUFFERED THE SAME FATE. ALL CASH IN BANKS WERE BORROWED BY GOVTs. ALL WERE GIVEN IOU SLIPS. AND WITHDRAWAL LIMITED TO ONLY USD1,000 PER MONTH PER ACCOUNT (THOSE WHO HAD BOUGHT ASSETS WITH HIGH LOAN REPAYMENTS ARE STUCK)
OF COURSE MALAYSIA WONT GO SO LOW LIKE ARGENTINA
2) WHAT ABOUT THE KLSE STOCK MARKET?
It will be down trending for the majority of shares as most companies will report tepid earnings (Of course there are exceptions!)
But watch out and AVOID THOSE COMPANIES IN OVER EXPANSION WITH HIGH DEBT, HIGH BORROWINGS & HIGH UNSOLD INVENTORIES!!
MANY WILL POSSIBLY FACE CASH CALLS IN COMING DAYS AS MALAYSIAN BANKS ARE NOW VERY STRINGENT IN LENDING (All Real Estate Firms & Car Companies can testify to loan rejection up to 50%!)
WITHOUT ACCESS TO LIQUIDITY THESE WILL HAPPEN
- ISSUE PRIVATE PLACEMENTS TO RAISE CASH
- RIGHTS ISSUE (In some cases sweetened by bonus & free warrants). For some Rights issue followed by more Rights Issue
- IF BOTH FAILED THEN THIS WILL HAPPEN. SALE OR FORCE SALE OF COMPANY ASSETS IF ANY
- FINALLY. LOAN DEFAULT AND PN17
- WAITING FOR WHITE KNITE & FINAL DELISTING
SO GO FOR COMPANIES WITH MANAGEABLE BORROWINGS AND SECURED REVENUE STREAMS. AND THOSE WITH RECESSION PROOF QUALITIES THAT ARE DEFENSIVE
BEST IS TO GET OUT OF THE STOCK MARKET ALTOGETHER IF YOU CANNOT FIND ANY SURE THING IN THESE UNCERTAIN TIMES
NOW IF YOU STILL ITCHY TO INVEST THEN THESE ARE SOME POINTERS
- WITH USA IN DEPRESSION JOHN MAYNARD KEYNES STILL SURVIVED WITH 2 FUNDS. BOTH DID OK AS HE INVESTED IN RECESSION PROOF UTILITIES WHICH PAY DIVIDENDS. LOOK FOR CASH RICH COMPANIES WHICH PAY DIVIDENDS. OR ASSET RICH COMPANIES UNLOCKING VALUE BY SELLING PROPERTIES
2. GOVT SUPPORTED INFRAR WORKS THAT STILL GIVE JOBS IN BLEAK TIMES. THAT WAS WHAT ROOSEVELT DID BY CREATING INFRAR JOBS
3. FOR MALAYSIA THERE IS A NEW FOCUS OF FDI DIVERTED FROM BOTH CHINA & USA. BUT DON’T BANK ON IT TOO MUCH AS MANY ARE ON THE SIDELINES
A POSSIBLE GOOD FACTOR COULD BE AN INCREASE OF TOURISTS FROM CHINA DUE TO THESE FACTORS
A) AFTER TUN DR M AFFIRMED HIS SUPPORT FOR HUAWEI THE CHINA AMBASSADOR WROTE A 7 PAGE THANK YOU LETTER TO MALAYSIA.
THIS SINGLE GOOD GESTURE HAS TURNED MALAYSIA INTO CHINA’S FAVOR
B) CHINA ISSUES WARNING TO ITS CITIZENS THAT EDUCATION & TOURS TO USA MIGHT BE UNSAFE.
C) THESE WILL DIVERT MORE TOURISTS TO MALAYSIA AS NEXT YEAR WILL BE VISIT MALAYSIA YEAR 2020 (WMY2020)
WILL TOURISM THEME BE THE COMING FOCUS JUST AS OIL & GAS HAS ITS BULL RUN FOR EARLY 2019?
IT REMAINS TO BE SEEN
FOR NOW AS THE STORM RAGES ON JUST KEEP SAFE IN CASH
BEST REGARDS
Calvin Tan Research
Singapore
Please buy/sell or keep to Cash after doing your own due diligence
FURTHER NOTE:
NOT ALL RIGHTS ISSUE ARE BAD. EXAMPLE: NAIM GAVE OUT RIGHTS ISSUE AT 45 SEN AND SHARE PRICE OF NAIM CRASHED TO 45 SEN
THEN NAIM ROSE BY MORE THAN 100% AFTER MARKET DISCOVERED NAIM USED RIGHTS ISSUE MONEY FOR PROFITABLE PROJECTS
HOWEVER, KLSE IS DRIVEN BY UP TO 80% TO 90% DAYS TRADERS, CONTRA PLAYERS AND SHORT TERM PUNTERS = ANY CASH CALL WILL BE BAD FOR OVERLEVERAGED GAMBLERS – ESPECIALLY THOSE HOLDING MARGIN LOANS. SO BE VERY CAREFUL & DEFENSIVE
THE RISK AND REWARD OF TRADING IN THESE TIMES PAY LITTLE AND NOT WORTH IT. BETTER DON’T TAKE RISK FOR SMALL REWARD!!
STICK TO LONGER TERM INVESTING BY BUYING VALUE AND SPACE OUT AVERAGE DOWN OR JUST KEEP TO CASH FOR NOW
Recent Posts
- When Palm OIl was At Its Peak of Rm4,000 It created Many Billionaires now Palm oil is above Rm6,000 per ton will we see more Billionaires? Calvin Tan April 8, 2022
- PALM OIL JEWEL: TSH RESOURCES(KLSE: 9059) WITH EARNINGS VISIBILITY & GREAT CERTAINTY WE CAN CLEARLY SEE AHEAD, Calvin Tan March 14, 2022
- PALM OIL STOCKS: THE SUPERSTARS OF YEAR 2022 (Forget all others. Just pile into Palm oil Full Force) January 8, 2022
- HANDAL MESSIAH: HE SHALL REIGN FOREVER AND EVER December 25, 2021
- THPLANT – A candidate for privatization? November 29, 2021
- A COMING SUPERBULL RUN TIME FOR PALM OIL IS INEVITABLE AS CPO AT WORLD RECORD OVER RM5,000 A TON October 30, 2021
- TAANN (5012) 10 YEARS PRICES (LOWEST & HIGHEST PRICES) EPS & DIVIDENDS FROM 2005 to 2015, From STOCK PERFORMANCE GUIDE Calvin Tan September 10, 2021
- SARAWAK OIL PALM (5126) Why is it in Calvin Tan Research’s Investment Radar? Top 5 Factors You Should Know About SOP Great Potential September 9, 2021
- TSH (9059) TSH now stands for “TELLING SECRET HAPPPILY” What Secrets? Lots of hidden potential, Calvin Tan Research May 21, 2021
- THPLANT (5112) A Look at its Grossly Undervalue Assets & Increasingly Bright Prospects, Calvin Tan Research April 21, 2021
- GREAT SUCESSFUL INVESTMENTS YEAR 2019: OGSE BULL RUN THEME; 2020 MEDICAL GLOVE SUPERBULL THEME: 2021 IS PALM OIL CPO BULL RUN THEME December 31, 2020
- LOOKS LIKE PALM OIL GOING INTO A BULL TREND DUE TO LA LINA AGAIN IN 2020/21 November 24, 2020
- AFTER MEDICAL GLOVE BULL RUN THE NEXT UPCOMING BULL THEME IS PALM OIL November 1, 2020
- 1993 WAS ASIAN TIGER BULLRUN, 2020 IS HEALTH CARE BULL RUN BY COVID 19, GLOVE, FACEMASK & NOW SANITIZER IN NYLEX & ANCOM, Calvin Tan Research May 14, 2020
- PROLEXUS (8966) ProXmask: The ProActive High Quality FACE MASK product of Prolexus that excels , Calvin Tan Research May 6, 2020
- MTAG (0213) MTAG (0231) ANOTHER GLOVES, FACE MASKS & RESPIRATORS DISTRIBUTORS, Calvin Tan Research April 27, 2020
- QUESTION & ANSWERS FOR LUXCHEM April 17, 2020
- PM’s speech on Prihatin Economic Stimulus Package (NFCP FIBERISATION IS ON!!) Calvin Tan Research March 29, 2020
- NETX (0020) INSATIABLE BUYING BY NETX STAFF SHOWS IMMENSE POTENTIAL February 14, 2020
- T7 GLOBAL VERSUS CARIMIN, , UZMA, PENERGY, & DAYANG (Compare & Contrast) Calvin Tan Research January 17, 2020
- TELEKOM TENDERS: SOME POSSIBLE WINNERS, Calvin Tan Research December 29, 2019
- BUY NETX, OPCOM, REDTONE & CMSB (SACOFA) FOR MULTI YEARS BULL RUN IN NFCP STOCKS SOON, Calvin Tan Research November 27, 2019
- T7 WINNING SUBSEA JOBS WILL BE ANOTHER PENERGY FOR TOPSIDE November 22, 2019
- NAIM FIRED UP ON ALL 4 ENGINES BUT CMSB(2852) HAS 7 SEVEN ENGINES OF GROWTH, Calvin Tan Research 22 Nov November 22, 2019
- TOP 10 REASONS WHY NETX IS NOW THE BEST BUY FOR NFCP JUST AS VELESTO WAS FOR OGSE November 17, 2019
- TOP UNDERVALUE SHARES TO BUY NOW FOR 2020 BULL RUN TIME November 16, 2019
- CMSB (2852) OWNER OF KENANGA INVESTMENT BANK , CEMENT MONOPOLY, FIBER OPTIC TOWER MONOPOLY IN SARAWAK November 12, 2019
- THIS IS NOW THE BEST TIME TO DEPLOY MONEY FULLY INTO THE COMING BULL YEAR OF 2020, Calvin Tan Research November 11, 2019
- PLEASE WHATASPP CALVIN TAN AT 019-3384010 Or 014-6101668 FOR NEXT POST November 9, 2019
- NETX MISSION STATEMENT November 9, 2019
- NETX IN CHUN CHUN INTO e-KYC October 30, 2019
- SELL UZMA. SELL CARIMIN. BUY OPCOM, REDTONE, NETX & OTHERS October 28, 2019
- 9th M’sia Plan Top Budget Allocation For Infrar Powered Up Cement So 12 MP For NFCP Powers up Opcom, Redtone & Netx, Calvin Tan October 27, 2019
- WHY IS ASIABIO BUYING ONLY NETX AND NOT DGB, MLAB, XOX, VSOLAR FINTEC & OTHERS? Calvin Tan Research October 26, 2019
- ASIAOBIO BOSS BUYING SO MUCH NETX OVER ALL OTHERS SHOW GREAT POTENTIAL, Calvin Tan Research October 26, 2019
- DIRECTORS/INSIDERS STRONG BUYING SHOWS NFCP BULL RUN VERY SOON, Calvin Tan Research October 21, 2019
- MUI PROPERTY (3913) HIGH VALUE STOCK WITH POWERFUL GROWTH CATALYST, Calvin Tan Research October 18, 2019
- TOP 10 REASONS TO BUY REDTONE (0032) BENEFICIARY OF NFCP OR NATIONWIDE FIBERISATION, Calvin Tan Research October 2, 2019
- NETX HAS A 70/30 FIGHTING CHANCE TO SURVIVE AND DO WELL IN THE DIGITAL ECONOMY, Calvin Tan Research September 25, 2019
- SCOMIES, OPCOM & NETX September 23, 2019
- SCOMI ENERGY (7045) THE HIDDEN GEM IN O&G BULL RUN September 19, 2019
- OPCOM (0035) OPTIMAL OPTIC COMPANY : THE SUPER-STOCK OF THE DIGITAL ECONOMY, Calvin Tan Research September 16, 2019
- BUY UZMA (7250) AT 62 SEN. TARGET PRICE RM1.20 August 12, 2019
- BUY TA ENTERPRIZE FOR ITS 4.1 SEN DIVIDEND (ABOUT 6% YIELD WHICH IS TWICE THAT OF BANK FD RATE) June 15, 2019
- LAFARGE CEMENT UP 100% FROM RM2.25 TO RM4.50 TODAY. TIME TO BUY MASTEEL (5098) AS IT IS A LAGGARD June 14, 2019
- TESTIMONY OF YTL TO THE POWER OF PROVIDENCE June 8, 2019
- DOLOMITE(5835) UP 143% DUE TO ASSET SALE WILL ASB(1481) GO UP LIKEWISE BY ASSET SALE? June 7, 2019
- INVESTMENT NEWS FOR JUNE 2019 BY EAGLE VISION June 6, 2019
- A LOOK AT PETRONAS LATEST GOOD QUARTER RESULT OF 9% EARNINGS GROWTH, Calvin Tan Research June 1, 2019
- OIL & GAS BULL PAUSE. AFTER THIS POOR QUARTER RESULT DUE TO MONSOON O&G BULL RUN WILL RESUME, Calvin Tan Research May 26, 2019
Archives
- April 2022
- March 2022
- January 2022
- December 2021
- November 2021
- October 2021
- September 2021
- May 2021
- April 2021
- December 2020
- November 2020
- May 2020
- April 2020
- March 2020
- February 2020
- January 2020
- December 2019
- November 2019
- October 2019
- September 2019
- August 2019
- June 2019
- May 2019
- April 2019
- March 2019
- February 2019
- January 2019
- December 2018
- November 2018
- October 2018
- September 2018
- August 2018
- July 2018
- June 2018
- May 2018
- April 2018
- March 2018
- February 2018
- January 2018
- December 2017
- November 2017
- October 2017
- September 2017
- August 2017
- July 2017
- June 2017
- May 2017
- April 2017
- March 2017
- February 2017
- January 2017
- December 2016
- November 2016
- October 2016
- August 2016
- June 2016
- May 2016
- April 2016
- March 2016
- February 2016
- January 2016
- December 2015
- November 2015