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.
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.
C C Land is a real estate company based and listed in Hong Kong. The share is trading at P/B of 0.43 and P/NCAV 0.62. The company assets are mainly cash after they divested various holdings.
C C Land has a large market cap of 5.5 bn HK$. Large net-nets are said to perform worse than small-cap companies, however I still found this position good enough. This is mainly due to the company is trying to acquire the Leadenhall Building in London, one of the few skyscrapers in the city. It seems there is a reasonable chance the asset discount will decrease with such a major and prolific change in business direction.
The company can fund almost the entire purchase with net-cash, but will also make a complementary rights issue. The transaction is not without risk, as they are paying a large premium to the buildings cost (it was completed in 2014).
Sino Agro Food is conglomerate of different food and agriculture related companies. The company is listed in the US (OTCMKTS:SIAF) and in Norway (SIAF-ME). The US share is trading at a slight discount to the Norwegian listing.
Chinese companies listed in Europe is a sorry bunch, ripe with frauds and dodgy accounting. Knowing this I still opened a small position in Sino Agro Food, mainly on a quantitative basis.
The share is trading at a large discount to net current assets, which is not uncommon for Chinese companies listed abroad (notable exceptions are HK and Singapore). Singo Agro Food has received some press coverage and management acknowledges the low share price and are planning various corporate actions to increase share holder value. This is a more risky pick, as the balance sheet is not as strong etc.
The company provides lots of IR material so there is information to dig into if someone is interested.
Entered at ~NCAV 0.4 (33 NOK).
Dickson Concepts is a Hong Kong based luxary retailer, with stores, their own brands and resellers. Well known brands include ST Dupont, which caries a range of expensive lighters, pens etc.
On the one year follow up of MCG I decided to exit the position. At the time of purchase MCG had a large cash position and was trading at around net-cash. During the last quarter the company invested much of the cash in data libraries, which I don’t have any strong opinions on. What is clear though is that the stock no longer has any good margin of safety and is no longer a net-net.
I exited at about the same price I entered. A slight profit (+6%) after FX and commission.
I sold the position in PC Partner Group this week, as the share is now trading at around NCAV. It may still have ways to go, but rules are rules…
I entered at 0.75$ and got one dividend of 0.035$. The sale price was 1.68$ so the total gain landed at circa 120 % in HK$. I bought the share amidst the China stock-market chaos in mid 2015.
After a lot of volatility it’s nice to be able to close a position with gains.
A quantitative pick from the Singapore Exchange. A distributor of piping and steel components to the energy, marine and infrastructure sector. Beaten down by low oil prices. Long history and seemingly shareholder friendly. Price: 0.116. NCAV: 0.37.
QCCO has been in the portfolio for one year and it’s time to do a follow-up. Price has fluctuated during the year and is at the moment -17% (including dividends). The total dividend during the year was 0.075 $.
The share had a 52-week high of 2.68 $, which was equal to a 60 % gain. Still, a bit short of my get-out early trigger and now the share is in the red.
Glancing the key ratios and balance sheet the share still looks ok, so it will stay in the portfolio one more year.
MultiClient Geophysical is a small cap Norwegian company that holds a library of survey data. The data is used for resource exploration. With the downturn in oil price the business seems frozen.
On the plus side the company has a strong balance sheet and low burn rate. The company is trading close to net-cash. Entered at P/NCAV 0.57.