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.
Clarious Group is a requirement service company listed on the Asx. The share is trading at NCAV ratio of 0.47 and the current assets are mainly receivables. Entered at 0.089. Market cap is circa 8M AUD.
A more detailed write-up is available at Cigarrfimpar.
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$.
It just came to my attention that QC Holdings paid a 2.5¢ dividend a few days ago (May 15th). This is the first dividend in the portfolio, hopefully more are to come.
Below are the first trades for the portfolio. All stocks were priced low compared to their net current assets at the time of purchase.
|Boom Logistics Ltd
|QC Holdings, Inc.
|I-O DATA DEVICE
* Includes Plant & Equipment