Portfolio performance 2017

It’s the time of the year to fill out the tax forms.

2017 was the second full-year of the bargain hunting strategy.  The total return for the portfolio was 18.8 %. This return includes fees, FX and taxes (transaction taxes and realized capital gains). The average share return was 23.9 %, which may interest anyone considering the NCAV/Market cap as a key ratio.

Unfortunately, I have stepped on a mine. Swing Media is trading halted and the situation smells bad. Either due to poor management or some shenanigans the company is facing bankruptcy due to liquidity problems. I’ve taken the conservative stand and marked it to zero value. Maybe I’ll write some more on the lessons learned later.

Open Positions
Company Ticker BOY/Entered Dividends EOY Return
Boom Logistics Limited ASX:BOL 0.105 0.26 147.62%
Nireco Corp TYO:6863 605 20 1175 97.52%
Sanshin Electronics TYO:8150 1128 25 1923 72.70%
NICHIWA SANGYO CO., LTD. TYO:2055 214 5 340 61.21%
EIDAI KAKO CO., LTD TYO:7877 255 10 387 55.69%
Emerson radio NYSEMKT:MSN 1.01 1.46 44.55%
Renesas Easton Co Ltd TYO:9995 524 12 738 43.13%
Magnificent Hotel Investments HKG:0201 0.173 0.0064 0.23 36.65%
Kawasumi Laboratories, Incorporated TYO:7703 657 17.5 864 34.17%
Coventry Group Ltd. ASX:CYG 0.89 1.15 29.21%
NIPPON ANTENNA CO., LTD TYO:6930 555 21 695 29.01%
Sanko TYO:6964 460 593 28.91%
KK Chuokeizai-Sha Holdings TYO:9476 413 10 515 27.12%
Tiemco Limited TYO:7501 487 12 592 24.02%
Oriental Watch Holdings Limited HKG:0398 1.5 0.054 1.78 22.27%
Sasakura Engineering Co Ltd TYO:6303 2250 7 2703 20.44%
Dickson Concepts (International) Ltd HKG:113 2.69 0.17 3.05 19.70%
Charle Co Ltd TYO:9885 475 15 535 15.79%
Clarius Group Limited ASX:CND 0.089 0.098 10.11%
GigaMedia NASDAQ:GIGM 2.94 3.0399 3.40%
Sin Ghee Huat Corporation Ltd. SGX:B7K 0.2 0.002 0.2 1.00%
Ambertech Limited ASX:AMO 0.12 0.12 0.00%
CosmoSteel Holdings Limited SGX:B9S 0.124 0.005 0.115 -3.23%
C C Land Holdings Limited HKG:1224 2.08 1.73 -16.83%
QC Holdings, Inc. QCCO 0.74 0.46 -37.84%
Sino Agro Food Inc SIAF-ME 32.5 8.67 -73.32%
Swing Media SGX:BEV 0.59 0 -100.00%
Closed Positions          
Company Ticker BOY/Entered Dividends Exited Return
Kingboard Copper Foil Holdings Limited SGX:K14 0.28 0 0.405 44.64%
UKC Holdings Corp TYO:3156 1627 0 1922 18.13%

Exited UKC Holdings Corp (TYO:3156)

So UKC hit a valuation of above net current assets a lot sooner than I expected. Not because the share price took of on a rocket, but because the company made large write-downs of receivables and prepayments.

The share has traded up since I took my position, but I feel a bit anxious about the write-downs so I sold. You know “Misfortunes never come singly” – there could be more problems with the books. The need to put together an independent audit committee indicates managerial problems.

Exited at ¥1922, so return of about +17 % in 5 weeks.


Entered GigaMedia Limited (NASDAQ:GIGM)

I took a small position in GIGM today. It’s a Taiwanese mobile game/IT company listed in the US. The share has been trading at below net-cash valuations for some time.

It’s a quantitative bet, the balance sheet is strong. The underlying business is poor, but cash burn-rate is slow. Some recent inside purchases. No share issues. Trading at net-cash ratio of 0.57.

Not much else to say. This share should obviously be part of a large basket net-net holdings.




Entered UKC Holdings Corp (TYO:3156)

UKC Holdings is engaged in the sales and distribution of semiconductor and electrical components. It´s a typical Japanese net-net low margin business. Entered at ¥1630 or a NCAV ratio of about 0.51. The company pays dividends and have some IR info in English.

Current assets  ¥  134 895 000
Total liabilities  ¥   85 111 000
Net current assets  ¥   49 784 000
Market cap  ¥   25 500 000
Ratio 51%

Entered Sin Ghee Huat Corporation Ltd (SGX:B7K)

Sin Ghee Huat is a stainless steel sales and distribution company, a one stop shop for shipbuilders, oil and gas companies etc. SGH is in the pipes, fittings and plates business. There are a number of similar net-net around the world, for example CosmoSteel (B9S). The sector is obviously hit hard by the declining oil and energy prices.

None the less, SGE has a strong balance sheet with plenty of cash and almost 0 liabilities.  The company does also seem to run prudently.

Entered at 0.2 SGD. NCAV ratio at 60%. Market cap of 44 million SGD.


Exited Kingboard Copper Foil (SGX:K14)

Today I exited Kingboard at 0.405 SGD. There is a tender offer for all shares in Kingboard.

During the time I’ve owned the share there has been a pending lawsuit from minority share holders against the company.  The story has many twists and turns and you can read more at the blog Cigarrfimpar.

As the shares where tendered at a slight premium to net current assets I am pleased. I decided to sell the shares on the market instead of accepting the tendered offer, mainly because it was nice to take some gains of the table.

I entered at 0.181 SGD, so the gain ended up at +124 % for a 18 months holding period.