Special Situation Investing Opportunities in Bursa Malaysia

There are a few interesting companies with short term catalyst brewing in Bursa Malaysia, I called these opportunities "Special Situation".

It is a relatively lower risk high return investing strategy in which investors may get annualised return above 50% if done right.

There are minimal downside because there would be a minimum price to all these investments.

The strategy is very simple:

1. Take a position by studying how likely is the transaction to go through

2. Who would be the bidder

3. Whether the bidder would pay a premium

4. Whether there are many public shareholders that would give soft pressure for the bidder to pay a premium

5. Whether the assets deserve a premium and if there are many parties competing for it

In both the special situations in BPlant and UMW, things will start to look interesting in the next few months given that the assets they hold are high quality.