I have spent some time looking at the very small investments in the portfolio - investments valued at less than a somewhat arbitrary threshold - on the basis that I need a really good reason to hold such investments in order to justify the time spent monitoring them. I sold a few such investments last year and still have several more to deal with.
One of the remaining ones is Herald Holdings (HK:114). This has been a very profitable investment in percentage terms due to a low initial purchase price and the high dividends the company has paid. After spending quite a bit of time thinking about it, I decided to add to my position rather than sell it. In addition to the manufacturing businesses returning to profitability (although some concerns over the order book were expressed in the most recent interim report) the company has a considerable amount of cash on hand and a portfolio of investment securities. The latter should have benefited from the share market gains since the last set of financials were released.
While the trailing dividend has been 9 cents per year for the last three years, I am not sure if that will be maintained. Even if it is cut to 6 cents, that is still a very attractive 6.8% yield.
Over the last few trading days I have accumulated some additional shares at HKD 0.87 per share.
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