Starting a separate thread on alternatives to investing in property rather than continuing to post them in other threads.
@Remmy - to follow up on our exchange, my ten largest holdings (as of early September) are:
CNOOC (883)
China Gas (384)
Henderson (12)
Sinopec (386)
Hutchison (13)
CCB (939)
Fairwood (52)
Cosco Pacific (1199)
Sinotrans Shipping (368)
China Blue Chemical (3983)
My most recent purchases (since 1 September)were: Sinotrans Shipping (368), China VTM (893) and Xtep (1368)
For the most part I either stick with large established companies or, for small/mid cap companies, I tend to require a solid balance sheet and/or very strong operating cash flows.
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I have purchased a few shares in Sinolink Holdings (1168).
As at the last interim report, the company is sitting on net cash of HK$3.8 billion and had net assets of HK$7.5 billion which equates to HK$1.09 and HK$2.10 per share. Most of the non-cash assets are either properties held for investment or properties under construction in the PRC. The shares are currently trading at around HK$0.61 - representing a 44% discount to cash and a 70% discount to NAV. Even by the standards of PRC property developers this looks excessive to me (especially since the peer group includes a number of companies with net borrowings).
Any thoughts appreciated.
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Remmy
11 yrs ago
IT - I like Fairwood. Its a good, stable, reliable, understandable business, that it managed well will perform well in both good and bad times.
I think Cosco and Sinotrans are both good buys right now.
What are your thoughts on REITS (either HK listed in Singapore)?
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Remmy
The HK REITS tend to provide decent dividend yields. The gearing restrictions and other regulatory requirements should mean that they are relatively safe and surprises should be few and far between. Many have benefitted from rising rental incomes in recent years but I would need convincing that a REIT is a better investment than a well established property company that can be purchased at a substantial discount to NAV and which also has a large portfolio of rental properties.
I haven't looked at the Singapore ones.
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Remmy
11 yrs ago
I see ZTE has invested in China All Access (one of my larger holdings as a small cap that I think will have strong growth). :)
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@trainee
Damn nice call on 1168. For fun I invested along when you mentioned it at 60 cents, and stock is up 40% over last 2 months. I am sure you are enjoying a nice profit!
Ed - why doesnt this forum have reputation yet? I would give rep if I could.
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Ed
11 yrs ago
liebster - funny you should mention that... we will be launching an ad campaign to promote this forum under its own url in the near future.
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@ liebster - it's nice to see some decent gains. It's still selling at a discount to its cash (never mind the properties) so I have no plans to sell yet.
Remmy and Loyd both made some excellent calls as well.
But let's not get too carried away ... markets go in both directions and some of us (me anyway) can make some pretty bad calls as well.
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Well, since the first post on this thread in Sept/Oct 2012, Remmy's suggestions have certainly done a lot better than mine.
Sinolink (HK:1168) is almost back where it started (even though its cash per share and total assets per share have both increased since then). :-(
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Ed
11 yrs ago
Right... but Remmy stated on many occasions that he is absolutely infallible...
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I thought the Pope had a monopoly on infallibility: http://en.wikipedia.org/wiki/Papal_infallibility
I certainly am not and to prove it I have been spending time recently taking the hit on my most of my unsuccessful investments: http://aprivateportfolio.blogspot.hk/ (Fortunately, the portfolio as a whole has done reasonbly well.... so far.)
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