Moved the blog

I received a notice from my old provider that they where going to charge me 400$ per year to run the blog. Since I have circa 5 readers per month I decided to move it to a cheaper (and almost non-working…) solution. ūüôā

 

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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.

 

Entered Magnificent Hotel Investments (HKG:0201)

Magnificent Hotel Investments is a owner and operator of seven large hotels, one located in Shanghai and the rest in Hong Kong. Magnificent has been going through some restructuring the last year, spinning of another listed company as well as changing company name. Going forward it seems that the company will focus on the hotels in Hong Kong, already sold of one hotel i Macao.

The investing thesis for Magnificent is simple:

  • The share is trading at large discount to book value (sorry, not a net-net this time).
  • The company has little outstanding debt, ie financially strong given the several large properties they own.
  • Clear focus in the company going forward.

The discount to book value is likely caused by the down turn in the Chinese¬†economy and falling property prices in, particularly, Hong Kong. The last year has been though on hotels in HK¬†as the number of mainland tourists have decreased. Given the world does not end, I think¬†it’s likely the tourists will be back.

Entered small position at 0.174 HK$.

P/B: 0.4

P/S: 3.5

P/E: 16.50

First trades

Below are the first trades for the portfolio. All stocks were priced low compared to their net current assets at the time of purchase.

Company Ticker Date Price P/NCAV
Boom Logistics Ltd ASX:BOL 2014, Jun 0.13 0.57*
QC Holdings, Inc. NASDAQ:QCCO 2014, Dec 1.67 0.67
Hengxin Technology HKG:1085 2015, Mar 1.38 0.45
Tiemco Ltd TYO:7501 2015, Mar 577 0.50
I-O DATA DEVICE TYO:6916 2015, Mar 630 0.53

* Includes Plant & Equipment