Wednesday 6 May 2020

Observation: CMCO

Went out today for the first time since they have announced CMCO.

Drove out to DJ to tapau lunch, then head to Tmn Mega for bakery stuff, before heading to Starling's supermarket & then back home

What did I notice?
A lot of cars, seems like back to usual already in terms of the number of cars on the roads. Having said that, it was easy to find parking (which means not everyone is 100% out back to pre covid).Nee

In TTDI, I think there are more shops open for business, but in Tmn Mega, most shops are still close re Magnum Toto etc.

Restaurants in DJ and Tmn Mega only provide for take away/ delivery only. What does this means? Less income for the food & beverage industry, coupled with a higher cost of operations (sanitizers, temperature check controller, fixed employees - unless they cut them down, ingredients unused which cannot last goes to waste). When it is fully reopen, the F&B also cannot operate at full capacity due to the required social distancing.

We are also required to queue up in most places, which is trying to control the volume of patrons at each shop.

I think generally people are also more conscious and wary about these matters.

Having said that, I do feel that this is the new normal. And businesses that can operate in this manner will be able to survive through this unfortunate climate. Those which are cash rich, less capital intensive, low maintenance will be probably one of the few good companies to keep your eye on them. You can start to research on these companies.

In theory, tech companies and tech related companies are good place to start. FB, GOOG, MSFT are top picks. TWTR NVDA too
You have to rationalise moving forward what does covid bring to them and out of the pandemic what they can bring forward to better the place.

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3 Grateful Things:-
1- Awareness of my body. Observing its status. I have been meaning to go for a medical checkup but didnt due to the lockdown. Let's see in the next few weeks if this is possible
2- Talk by Conrad. Picked up a few tips. He is still bearish but the charts/ markets are currently bullish. If SPY break upwards (above the fibonacci, then we might be looking at a strong bull run). Having said that, there is a lot of mixed bull / bear indicators
1) President election year = bullish
2) January barometer - bearish
3) Sell in May and go away - bearish
4) poor economy results (likely but not confirmed) - bearish

3- Bought ingredients for baking bread and making pasta! :D


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