As personally I don’t expect MYR to further depreciate against the USD in 2016, I will try to avoid such the boutique s unless it has great growth potential and still not too overvalued. However, I think it still has some growth potential especially the impending contract renewal with revised rate for its facility management service with states government. It is also expanding its management service to include private sector and healthcare facilities lately, and the new business acquisition (plumbing & rain water harvest system) will make it a more complete service provider. AWC, generally a facility management service provider, stirred some interest because of its recent acquisition of 2 companies with profit guarantee. Home builders Berkeley Group and Barratt Developments as well as Lloyds Banking Group are among the companies with over 70% of their revenue from the U.K., trade on a price-to-earnings discount to European rivals and are rated buy or neutral. As its share price is low at below 10sen, I think it can potentially give 100% return in one year time if quarterly results are good. If I sold stocks like Inari, Geshen, Hevea etc, I’m not sure whether I will ever buy them back and my portfolio return will not be as good as it is now.
The commencement of its milk packaging business seems to be delayed, and strong USD does not do any good to it. It is an export stock which is supposed to be a beneficiary of strong USD but it made massive loss from stronger USD due to unfavourable currency hedging. I wish to limit my exposure to export stocks unless there is one which is selling really cheap but I doubt whether there is any. Like buying a lottery ticket and testing one’ luck (where the probability of the investor getting the first prize is one out of 2 million). People now love buying on the Internet. If GMCR falls below $60, I will be buying the stock. I’m eager to see what this new business venture will bring to its top and bottom lines. Nonetheless, stock prices are not as important as the value of the business behind the stock.