CS Initiates Report on SP Setia

Very optimistic outlook for the stock but we still felt otherwise.

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CS gave a Grey Sky scenario at current price which actually meant that they felt the worst is now and the current price is cheap even under the worst estimate.

Take a look at the whole report…

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CIMB’s Initiation on MQREIT

Check out the initiation on MQREIT from CIMB.

We think that this is one of the betterĀ REITs since much of its income comes from office buildings rather than retail or hotels. The stickiness of office buildings are much higher compared to retail since the retail segment depends heavily on people actually coming in to buy things while it is not necessary for office operations.

During an economic slow down, we tend to see malls going empty and smaller retailers closing shop but the major ones stay. The tenants of MQREIT are large corporations like DHL, BMW, HSBC and Tesco which do not move around frequently due to cost. It is likely that their business would stay during recessionary times.

Although we like the stock but we felt that parking a huge percentage of our fund into this stock turns into an opportunity cost. We seek growth rather than income which makes this counter a top pick if you are seeking for income.

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