China Banks, Trimming down Position


Stock Idea: China Banks

I have been buying China banks like China Construction Bank and Bank of China recently. In the currently slightly expensive market, China banks still have low PE and low P/B, notwithstanding doubts on their credit quality. I may continue to accumulate if their share price drop.

Trimming down positions

I have also been trimming down my positions in Aug - Sep:
- Sold a portion of 800 Super. After the sale, 800 Super is around 2% of my portfolio. 800 Super will start to operate the WTE plant at end 2017. Will wait to see how much the plant will help the bottomline.

- Sold my entire position in Soilbuild Reit after it announced its lease issue with NK Chemical. Soilbuild Reit's position is not large, around 2% of my portfolio. The sale carries a small profit as I bought the Soilbuild Reit at $0.66.

- Sold half of my stake in Ping An and 1/4 of my stake in CM Bank. The money from the sale are used to buy the China Banks

- Sold a smallish position in Nordic. Can't resist taking smallish profit as its price ran up. After the sale, my stake in Nordic is still around 9% of my portfolio

Thoughts

Cogent is finally running up. I have been accumulating around $0.80 this year. I think its management are smart and prudent in the use of capital. They gave out some dividend recently so as to return the cash they may not need. I saw business that hoard cash; business that don't hoard cash are rare.

Many people have commented on Comfort Delgro (CDG). Long story short, CDG taxi business is disrupted by Grab and Uber. Profits from taxi business is around 1/3 of its overall profits. I am not comfortable in owning businesses who are disrupted by technologies. Hence, I shall put CDG in my "too difficult" pile and skip this stock. I may be tempted to buy CGD if its price drop further and further. After all, in this slightly expensive market, stock ideas are very hard to get.

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