My Pick for 2012

Despite all the gloomy economic news nowadays, many pundits are still hanging around near Starbucks arguing among each other and confronting one another about who will predict the right timing for the economy to fall into recession. Instead of sitting down at kopitiam drinking RM1.50 coffee for poor people like me, why not try figuring out what will be best pick on Malaysian shares for 2012?

What will be my pick for Malaysia shares in 2012?

First, for the 1st half of 2012 i will like to remind fellow investors to beware of election. If election is approaching, meaning it is asking you to "Leave the Market before you get hit!!". Prior to election, i will advise fellow investor not to take risk and stay sideline during election time.

However, besides election, what are the stocks that i will be eyeing for? For the 1st half of 2012, i will stay Bullish on CPO price and predicting CPO price will remain at the range of 2900 to 3200. Thus, i am still looking for plantation shares during the first half of 2012. Plantations share with good valuations that i am eyeing are (Gnealy TP 7.20, Hsplant TP 3.30, Kmloong TP 2.70, Thplant TP 2.80 and Tdm TP 4.10) 

Secondly, the sector that investors should scrutinize at is rubber sector. Rubber price has plunge from around RM11/KG to RM7/KG. This will bring beneficial to the rubber glove companies. The top pick for rubber glove companies are (Hartelaga TP 7.50 and Supermaxx TP 4.30)

Thirdly, i will remain defensive on consumer sector and will be scrutinizing on companies that pay out high dividend yield. Please take a look at (Bjfood TP 1.40, Yhs TP 2.40, Carlsberg TP 9.00, and Ajinamoto TP 4.20) Most of this shares that i am looking are paying out high dividend. Currently, i am monitoring closely on Yhs and Bjfood. Will write more on this companies once the timing is right. Take a look at Yhs, as they have change management and i can foresee that the changes of management did took effect on their earnings outcome. However, it is still too risky to make a decision yet. Thus, if Yhs continue to consolidate at 2.00, it may be a buy call. On the other hand, for Bjfood, they are expanding their business to Indonesia and China, i am anticipating that their business will bring a positive earning outcome for the company as i like Bjfood healthy balance sheet.

Lastly, i will be looking more on defensive and more liquidity shares. These are (Kpj TP 5.10, Oriental TP 5.50, Jtinter TP 7.30, Tenaga TP 6.50, Mediac TP 1.30, Parkson TP of 6.10, Genm TP 4.10 and Dialog 2.70). For more defensive purpose i prefer Oriental as their balance sheet is still hoarding with a vast amount of cash. For Dialog, oil price is still remaining at a high end level and it is one of the major oil company that having strong balance sheet. However, for Genting Malysia, their expanding in New york and UK. This may have an impact on their earnings.

Having a rough idea on what will i be looking at for 2012? Remember, once you got your ang pao, don't hide it under the bed! It won't turn your bed into gold!! Take it out and invest and generate more income!! But please do be more cautious for this year and any of you do have issue or problem, please do email or leave comment! Happy investing!!=)