Wednesday, March 16, 2011

K Wah purchased

This morning I added property developer and investor K Wah (HK:173) to the private portfolio. My average purchase price was HK$3.25 per share.

K Wah is essentially an asset play, selling at a very deep discount to its NAV while, at the same time, offering a reasonable 3.4% trailing dividend yield. The balance sheet is acceptable, with about 34% gearing as at the most recent interim balance date. My expectation is that monetisation of some of the company's assets through the sale of completed developments will translate into a reduced discount to NAV.


Poor Man said...

That was a big spike in volume that you caused.

traineeinvestor said...

I know, I know.

And now that I've stopped buying, no doubt the volume will collapse today.