China Merchants Holdings Pacific

Admittedly, CMP is undergoing a re-rating and PE expansion. The rising mkt cap is inline with mgt's plans as indicated in The Edge interview back in Nov 2013.

As indicated in my earlier mail, it appears that the rising tide in A & H shares is largely driving CMP share price. Even after the recent rise, there remains merit chiefly in terms of dividend yield that remains attractive to hold on to CMP.

In addition, CMP's acquisition ability has also been enhanced by the dearer valuations of new equity assuming that potential targets continue to stay available. With financial mkt conditions boiling in China, the situation for M&A deals will remain fluid and any ability to structure accretive acquisitions may result in further positive re-rating of CMP.

Should CMP continue to demonstrate such M&A deals, then CMP dividend yield will have further room for compression - a scenario no different to that of a growing REIT / business trusts.

I am not trying to stretch imaginations here but merely drawing parallels on how low growth but stable dividend yielding REITs in particular have returned substantial returns to many happy investors over the last decade.

Vested
Core Holdings
GG

(10-04-2015, 10:12 PM)Jack31 Wrote: Quite tempted to sell some given current run in price. Never wrong to take profit I suppose.
Waiting for Q1 result see how it goes.. Have high expectation of 9rui.

Very vested.

Yet another all time high today! And yet another congrat to all vested buddies.

CMP's current re-rating is way overdue IMHO. The dividend yield remains decent though not as attractive when it started off at 8% mid 2014.

While China's economic growth is tailing off with its enlarged base and transformation to a more domestic focus one, infrastructure development remains a key focus. Of which toll road exposure appears to be lower risks than other segments like environmental controls.

China's recent pet project AIIB will also lend more focus and help in Asia and China's infrastructure developments.

Vested
Core Holdings
GG

(13-04-2015, 02:51 PM)Jack31 Wrote: Yet another all time high today! And yet another congrat to all vested buddies.

Hey Jack, everyday you delay selling this stock, you get richer; it's hitting $1.20 now. At this rate, you're going to be very rich if you delay long enough!

Successful investments is about identifying unpolished gem.

The identification process is tough... bringing oneself to build a core position within a portfolio is even tougher. Sitting on a fundamentally unchanged investments notwithstanding rising share prices gets even tougher.

Since successful investments is so heartaching, why change the views so easily when there is no fundamental changes in the underlying business?

GG

(13-04-2015, 04:14 PM)sykn Wrote: Hey Jack, everyday you delay selling this stock, you get richer; it's hitting $1.20 now. At this rate, you're going to be very rich if you delay long enough!

China Merchants Bank

Latest CB conversions since the last one reported on 18 Mar. I think CB conversions will resume and cap the run-away price performance in the short term.

Technically, CMP share price may dip back to 112 (50% retracement from previous low of 104) should the conversion flow takes off for the current phase.

Vested
Core Holdings
GG

http://infopub.sgx.com/FileOpen/Cancella...eID=343605

CHINA MERCHANTS HOLDINGS (PACIFIC) LIMITED
(Incorporated in the Republic of Singapore)
Company Registration No. 198101278D
ANNOUNCEMENT
CONVERTIBLE BONDS DUE 2017 -
CANCELLATION OF BONDS DUE TO CONVERSION
The board of directors (the “Board”) of China Merchants Holdings (Pacific) Limited (the “Company”) wishes to announce that HK$15,000,000 in aggregate principal amount of HK$1,163,000,000 1.25 per cent. convertible bonds due 2017 (credit enhanced until 2015) (the “Convertible Bonds”) have been converted and cancelled pursuant to the exercise of conversion rights by the holder thereof (the “Conversion”). Accordingly, following such conversion and cancellation, the aggregate principal amount of the Convertible Bonds remaining outstanding as of 13 April 2015 is HK$704,000,000.
Arising from such conversion, 2,866,537 new ordinary shares in the capital of the Company (“Shares”) have been issued at the conversion price of S$0.826 and the total number of issued and paid-up Shares of the Company has increased to 1,067,423,942.

Based on outstanding HK$704m worth of CBs, the potential shares to be converted at $0.826 is 134.536m.

(13-04-2015, 04:14 PM)sykn Wrote: Hey Jack, everyday you delay selling this stock, you get richer; it's hitting $1.20 now. At this rate, you're going to be very rich if you delay long enough!

Lol, this stock take up about 40% of my portfolio, that's y I also quite worry if something unpredictable happen (touch wood), it will be a big big hit to me. On the other hand when I sell some, I end up buying back at higher price.( still not experience enough like nick n GG). The last was I sold abit at 96 and end up buying again at 105 after they declare bonus. (To have a full lot after xb). I've been wanting to ask any buddies at what price would u cash out? For sure there will be an overprice price right? Current price is slightly less than 6% yield..

Not trying to talk up/down the stock. Just seeking opinion.

Being value investors, shouldn't we buy/own based on prospect rather than on current fundamentals? I always remind myself to focus on future value because today's high can be tomorrow's low.

Jack, I have struggled greatly with Buffet's and Mungers' view about taking concentrated positions, and decided instead to spread my portfolio across 20 - 30 stocks because as a small fry, I can never get access to the deep info on the companies I buy, unlike Buffet. CMPH is a great business, but I personally dare not hold such a huge position of it in my own portfolio, basically because I cannot cope with the downside risk, should the unforeseen happen. Another value investor with stronger guts than I may decide totally differently. (Value-edge.com has a couple of articles on this subject too)

(13-04-2015, 09:04 PM)Jack31 Wrote:

(13-04-2015, 04:14 PM)sykn Wrote: Hey Jack, everyday you delay selling this stock, you get richer; it's hitting $1.20 now. At this rate, you're going to be very rich if you delay long enough!

Lol, this stock take up about 40% of my portfolio, that's y I also quite worry if something unpredictable happen (touch wood), it will be a big big hit to me. On the other hand when I sell some, I end up buying back at higher price.( still not experience enough like nick n GG). The last was I sold abit at 96 and end up buying again at 105 after they declare bonus. (To have a full lot after xb). I've been wanting to ask any buddies at what price would u cash out? For sure there will be an overprice price right? Current price is slightly less than 6% yield..

Not trying to talk up/down the stock. Just seeking opinion.