Monday, October 10, 2011

NWS Holdings purchased

This morning I added some shares in NWS Holdings Limited (HK:659) to the portfolio. NWS Holdings is a diversified conglomerate with its main businesses being toll roads/transport, water, waste management and miscellaneous services. The company is selling at a trailing PE of 7.6x and a trailing yield of 6.6%. The yield represents a pay out ratio of 50%, leaving plenty of profit being reinvested. The balance sheet is solid, with HK$4.5 billion in cash and net gearing of only 7% giving the company the flexibility to continuing expanding its businesses and to withstand adverse economic conditions.

I paid an average of HK$10.62 per share.

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