HSI (2800) returns: 25.25-> 27.45 + 0.15 (dividends) = 9.3%
S&P (SPY) returns: 254.38 -> 291.12 + 1.43164 (dividends) = 15%
Current Portfolio return: 1% (bond, stock and funds invested for mum), 23.14% (my stocks only)
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Transactions (August)
1) Increase of LHT due to lowered prices.
2) Increase of TTJ due to lowered prices.
Both companies, being cyclical, did not fare well on the earnings front.
Price movement in the stock market is highly correlated to earnings, and as such, it might be foolhardy on my part to insist on buying based on book value. Yet, balance sheet investing is the easiest, and most reassuring way of all.
LHT
Current Market Cap of LHT (Price: $0.50 a share), 26.62m
Half Yearly results on 8-August-2019 (https://links.sgx.com/1.0.0/corporate-announcements/5S6NEQ21JX7VTPIQ/LHT-Holdings-Ltd-Half-Year-30-June-2019-Results-Announcement.pdf)
Cash: 16.596
Fixed Deposit: 11.21
Total Cash: 27.806
Total Liabilities: 8.792
Net Cash: 19.0m
Supposed I am the majority shareholder of LHT, and given that interest rate is going down, liquidity is bothersome, and I am virtually paying 7.62m (26.62m market cap - 19.0m cash) for the entire company, and the fact that dividends has been on the high side... would listing on the market makes sense? I have no need for easy access to capital...
Hong Kong markets has seen some recovery but my stocks did not rise in sympathy. As such, the portfolio as a whole has underperformed against the HSI recently. I am not expecting to beat the US market, which is a disappointment but largely deserving result.
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