S-Chips Portfolio

[Musicwhiz]

sometimes a good company doesnt mean its a good stock thats my feel of things.

Yes, I fully agree with this statement!

[Jacques]

With the KDR listing, I foresee the price to go higher, my target being 20% up from current price over a 6 months horizon.

Based on quantitative factors alone, it is worth taking a closer look as there not many counters commanding such a low PE with four quarters of relatively consistent earnings.

Am currently vested. Will consider accumulating further on price pullback.

Caveat emptor.

An update for China Gaoxian. For the KDR listing, there will be 600 mil new shares issued, which I think is very destructive to shareholder value due to the huge dilution. As such, the issue doesn't look so attractive to me anymore.

Nonetheless, the stock could be played up during/or after the EGM and/or prior to the signing of the subscription agreement, which sets the issue price at not more than 10% discount to the prior traded average.

As my average holdings is below 20cts, I will be considering to take some profits when the opportunity arises.

Please trade with care.

[MrValue]

I'm somewhat apprehensive about S-chips that got listed in the recent 2 yrs after the mkt peak of 2007.
With such poor valuation of S-chips in SG, why would any Chinese business owner decide to list here rather than getting a better valuation in HK?

Thus, I rather pick those with longer listing history.

[Jacques]

My view is that we need to keep an open mind and be flexible when chasing returns. Investing in any stock may end up in losses, but that doesn't mean we should completely avoid the sector which the underperforming stock is in. To me, the issue is more counter specific than sector specific. Ultimately, it all boils down to valuations and if there is an extreme gap between valuation and price, it just doesn't make sense for me to ignore the opportunity.

Every investment has a risk, and one way to managed risk is by simple diversification. One rule I set for myself is never to hold any stock over 20% of my portfolio value.

Back to the thread topic, I was checking out on China Minzhong, another S-chip recently listed earlier this year. They are doing processed vegetable foods. I am much impressed by the strong operating cash flow which the company can generate. Has anyone checked out the company before? Any views?


IPO Price: $1.20
Current Price: $1.25
PE: abt 9.5
NAV: $0.87
ROE: abt 15%
Profit (FY ended 30 Jun): 367 mil RMB
EPS (FY ended 30 Jun): $0.134
Net margins : abt 20%
Operating Cash Flow: 610 mil RMB

[Nick]

My view is that we need to keep an open mind and be flexible when chasing returns. Investing in any stock may end up in losses, but that doesn't mean we should completely avoid the sector which the underperforming stock is in. To me, the issue is more counter specific than sector specific. Ultimately, it all boils down to valuations and if there is an extreme gap between valuation and price, it just doesn't make sense for me to ignore the opportunity.

Every investment has a risk, and one way to managed risk is by simple diversification. One rule I set for myself is never to hold any stock over 20% of my portfolio value.

Back to the thread topic, I was checking out on China Minzhong, another S-chip recently listed earlier this year. They are doing processed vegetable foods. I am much impressed by the strong operating cash flow which the company can generate. Has anyone checked out the company before? Any views?


IPO Price: $1.20
Current Price: $1.25
PE: abt 9.5
NAV: $0.87
ROE: abt 15%
Profit (FY ended 30 Jun): 367 mil RMB
EPS (FY ended 30 Jun): $0.134
Net margins : abt 20%
Operating Cash Flow: 610 mil RMB

I am vested in China Minzhong. Corporate governance will be an issue for S Chips due to the many scandals in the past. Granted, China Minzhong does have GIC in its Board, but it will take time before the company wins the trust of investors here.