For the past one weeks, two brokers initiate coverage on OUE Ltd. The target price given is quite close, around $4.2. The stock was also covered in the edge year end issue. Why the buzz around the company?
The draw:
- Office rental recovery
- Hotel business doing well as more tourist arrive
- More initiative to unlock value
At this price, the upside is about less than 20%. Not that attractive compare to many undervalued small and mid cap. However, if you buy only blue chip, I think it has chance to continue to move up. As more people believe the stock will do well in coming year, it will move up slowly.
Tuesday, 18 January 2011
Monday, 17 January 2011
Wilmar diversify into property
Few weeks ago, Wilmar announced the plan to go into China property development with Kerry properties and Shangri-la. Wilmar's job will be sourcing the site for development with their connection, the partners will be managing the development.
The market reacted negatively on the deal. The logic is simple. Why diversify into something that is new and unproven? Furthermore, China property sector is under pressure from the cooling measure. However, I have a neutral view on the move.
While moving away from one's core competency is not a good idea, but we have to judge it on case by case basis. The investment and contribution from this property venture will remain small, and they are getting a good deal from the local government. It looks like an opportunistic move rather than purely losing focus.
Investor has to continue monitoring the situation to see whether there is any deviation to the core agri consumer business.
The market reacted negatively on the deal. The logic is simple. Why diversify into something that is new and unproven? Furthermore, China property sector is under pressure from the cooling measure. However, I have a neutral view on the move.
While moving away from one's core competency is not a good idea, but we have to judge it on case by case basis. The investment and contribution from this property venture will remain small, and they are getting a good deal from the local government. It looks like an opportunistic move rather than purely losing focus.
Investor has to continue monitoring the situation to see whether there is any deviation to the core agri consumer business.
Friday, 14 January 2011
Selling Longcheer was a good decision
Longcheer is a handset design company which has customer in China, India and other emerging market.
I bought into the company share after being highlighted by Lim & Tan. The company is paying good dividend, having sufficient good return on equity, low valuation and business is doing well. Later on, DBS Vickers also recommended the stock. Although it is a tech stock I will usually avoid, I bought some share hoping for re-rating.
Things didn't pan out that well. After a good quarter, major share holder start selling out which makes me uncomfortable. The earning visibility is poor and Lim & Tan suggest that the earning might disappoint. Therefore, I took the decision to quickly cut it. It is drifting down slowly.
I bought into the company share after being highlighted by Lim & Tan. The company is paying good dividend, having sufficient good return on equity, low valuation and business is doing well. Later on, DBS Vickers also recommended the stock. Although it is a tech stock I will usually avoid, I bought some share hoping for re-rating.
Things didn't pan out that well. After a good quarter, major share holder start selling out which makes me uncomfortable. The earning visibility is poor and Lim & Tan suggest that the earning might disappoint. Therefore, I took the decision to quickly cut it. It is drifting down slowly.
Sunday, 2 January 2011
Venturing out to Hong Kong
Recently, I have started to read more about Hong Kong market and stock. Being a bull in China, there are not many choices on SGX. Among the few s-chips that SGX have, not many are market leader in China. In contrary, there are many good China companies listed in Hong Kong. Those that can offer superior growth of 20% per year and having ROE of more than 20% can be more easily found on Hong Kong stock exchange.
I am doing research on the market now, will post more if I have concrete details.
I am doing research on the market now, will post more if I have concrete details.
2011 - A new start
2010 was a busy year for me. The project work and constant OT took most of my time. However, I still manage to squeeze out sometime for investing.
2007-2008
Since the sub prime crisis, the global economy has gradually recovered. The pace of US recovery is still pretty slow and China has taken a bigger role in supporting global growth. When I think of my investment performance for 2007 to 2008, it was horrible. I was too late to cut loss and those stocks that bought during last peak were still 50% down. I hope I will do better going forward.
2011 outlook
The market will still go up in year 2011. We are no where near the peak now, since the confidence is still fragile and inflation just started to come back. What stock will do well is hard to say, as I am not a macro guy. My main investment theme is still China. That's where the strong growth going to come. Singapore tourism will continue to do well as more IR attraction will open. All the gambler in South East Asia will want to try their luck in Sentosa or Marina Bay Sands
My portfolio
Since second half of 2009, I have been gradually building up my portfolio again. Base on the experience accumulated for previous few years, I hope I am on the way for better performance in this cycle.
My top 5 holdings are
1) Hsu Fu Chi
2) Etika
3) China Animal
4) C&O Pharm
5) Eratat
For the past few weeks, Eratat lifestyle has started to move. It has gradually attracted market interest due to low valuation. I think there are two theme with the stock - i) stock re-rating ii) earning growth. It could be a multi bagger in making if the management is able to execute the growth plan well.
Beside that, I am confident that F&N and Genting SP will also do well in coming year. F&N rose a lot in year 2010, the upside might not be that great, but the growth plan for F&B sector is exciting and there is value to be unlocked from property segment. Genting will do well if the gambler continue to come in a big way.
I hope I can do more regular posting. To sum up year 2010,
Sometime the best stock is the one you already holding
2007-2008
Since the sub prime crisis, the global economy has gradually recovered. The pace of US recovery is still pretty slow and China has taken a bigger role in supporting global growth. When I think of my investment performance for 2007 to 2008, it was horrible. I was too late to cut loss and those stocks that bought during last peak were still 50% down. I hope I will do better going forward.
2011 outlook
The market will still go up in year 2011. We are no where near the peak now, since the confidence is still fragile and inflation just started to come back. What stock will do well is hard to say, as I am not a macro guy. My main investment theme is still China. That's where the strong growth going to come. Singapore tourism will continue to do well as more IR attraction will open. All the gambler in South East Asia will want to try their luck in Sentosa or Marina Bay Sands
My portfolio
Since second half of 2009, I have been gradually building up my portfolio again. Base on the experience accumulated for previous few years, I hope I am on the way for better performance in this cycle.
My top 5 holdings are
1) Hsu Fu Chi
2) Etika
3) China Animal
4) C&O Pharm
5) Eratat
For the past few weeks, Eratat lifestyle has started to move. It has gradually attracted market interest due to low valuation. I think there are two theme with the stock - i) stock re-rating ii) earning growth. It could be a multi bagger in making if the management is able to execute the growth plan well.
Beside that, I am confident that F&N and Genting SP will also do well in coming year. F&N rose a lot in year 2010, the upside might not be that great, but the growth plan for F&B sector is exciting and there is value to be unlocked from property segment. Genting will do well if the gambler continue to come in a big way.
I hope I can do more regular posting. To sum up year 2010,
Sometime the best stock is the one you already holding
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