Monday, April 21, 2008

Still on Credit Crunch

Most will get a temporary relieve and ready to pound this morning when KLSE opens. Turtle knows most have already reading the news every where. As Turtle is working on a longterm investment portfolio, i.e. not trading, news like last Friday is a non-event. Even KLCI move up to 1400, a potential 10% upside from 1267 will not matter because he may not want to take profit. However, if KLCI drop to 1150, that will be a good news because that is a 9% discount.

Is the worst over? There are signs of credit cruch begin to hit non-US businesses decisions. Credit costs become costlier. Some of Malaysian businesses already delaying their fund raising activities. They either perceived distressed assets have not reached to a very very cheap level or weakening of business outlook. YTL is very shrewd when comes to acquire distressed asset, remember Wassex deal when Enron fall?

Eventually, growth will be affected when people continue to wait for each other. Lending instituitions are still afraid to lend to each other.


1 comment:

AC said...

YTL, 50% of my portfolio is in this stock.