Friday, August 30, 2013

Sinolink holdings purchased

Yesterday I purchased a few more shares in Sinolink Holdings (HK:1168). The results were disappointing but the drop in profit was largely due to non-cash write downs of certain assets. The company is still sitting on cash equivalent to HK$1.10 per share as well as its other assets. Recurring cash flow should continue to improve as completed buildings move to full occupancy and the hotel opens.

I would like to see the company do two things (i) start paying dividends and (ii) after the Rockbund project is completed not do any more transactions with associated companies - at present too much of the company's balance sheet is locked in in the investment in/loan to the associated company. IMHO, these two steps should result in a material re-rating of the share price.

I paid HK$0.66 for the additional shares.

Wednesday, August 28, 2013

Anhui Express purchased

Having largely taken my eyes off the markets for the last few weeks (work, study, holiday), this week's catching up on my investments and the markets generally was interesting:

1. I am kicking myself for not topping up on silver when the price was below USD20 per oz;

2. some of my companies have released better than expected results: Cosco Pacific, Automotive Holdings, Challenger Financial, CNOOC and Anhui Express in particular stood out. None of the recent results were disappointing;

3. the melt down in the Indian rupee is disappointing and has impacted my balance sheet. Not sure whether I should bail out now or whether things have reached the point where it makes more sense just to ride it out. The case for India's longer term economic growth remains intact (IMHO);

4. the recovery in the price of Xtep (HK: 1368) has been one  of the stand outs. Happy to see one the losers in the portfolio get back to more or less what I paid for them (after adjusting for dividends).

The recent falls in prices has tempted my and I added a few more shares in Anhui Express (HK:995) to the portfolio. This is largely a yield play. I paid HKD4.05 for the additional shares.

Sunday, August 04, 2013

Two paydays to go

Just two months to go. Right now, work has picked up and I have started my part time post-graduate studies and I am doing some volunteer work for a non-profit. While I don't regret jumping the gun (so to speak) and starting with my retirement projects a little early, I am looking forward to winding down on the work front and being able to focus properly on the new projects.

I'm still procrastinating on updating my will ... which is fine so long as I don't drop dead before I eventually get around to it.

The CMR debacle (100% loss on my books at the moment but hopefully some recovery as there is an underlying business and, if proven, the allegations should result in claims against the auditors), has been an interesting test of my ability to deal with problems. So far, it does not seem to have bothered me at all. My retirement numbers still make sense and I could survive a few more losses of this nature without my retirement being at risk. It's helpful that I have at four individual equities with realised and unrealised gains and dividends which are greater than the loss on CMR (HWL, Hua Han, Westpac and China Gas). Of course, it does highlight one of the greater risks in buying individual equities instead of funds, but I have no present plans to alter my investment strategy.