Friday, November 26, 2010

Properties Sector

Most of the counters in properties sector now facing the impact of merging.If the owner never select own company to merge, it can be faced someone eat it by way of general offer. It is same as previous time happen on finance sector. The listed of properties counter may reduce a lot and left few strong companies monopoly the properties market.

This is the trend because cost of land increase substantially and cost of development is increasing. No one can stop it. Bank Negara has a certain right to slow down but finally the cost become unpredictable.

So, if you can hold some stocks in properties sector. This is an opportunity to earn money but very difficult to select the right one. Because some offer is lower than market price. Some properties shares been over value by certain people, some is because loan base higher than value.

So, which one is right one? Please do it some speculating by way of volume done. No encouraging by way of long term.

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