July '17 Portfolio Review and Some



Wow time flies! 4 months since i last updated! I further reduced SOILBUILD due to its exposure to the O&G business and the management is still finding it hard to find someone to take over the property vacated by Technics Offshore. I am glad i recycled most of the funds into VIVA and bought it at the correct moment. 

I am also glad that i held on to CACHE instead of letting it go. Price is slowly recovering. I was thinking because of belief that the outcome of the Schenker saga will be positive to CACHE ? Or perhaps it has to do with HNA wanting to list a commercial reit in SG? I am not sure. Perhaps there will be more M&A news coming up?

I bought into ECWORLD and LIPPO to further diversify my portfolio. I wanted to buy into MANULIFE, but this about the W8BEN, holding tax and everything is too mind boggling for me.  (I am lazy after all). I like ECWORLD for its relatively high yield (>7.5%), sub 30% gearing and exposure to the e-commerce in China. Moreoever China's population will only explode after removing the 1 child policy. And the Chinese really spoilt their kids! I love using TAOBAO and buying things online instead of going into brick and mortar shops. I think this trend will continue and more people will turn on internet purchase for the convenience and lower price. This means those reits that hold physical retail stores have to buck up! Oh no!

Ok now, buying LIPPO sounds like im contradicting myself then. However my thoughts for LIPPO is that LIPPO's main focus is in Indonesia, and Indonesia's economy is chugging along (as long as their politics stay stable), that means a growing middle class. People will ask "I thought you say people will do internet shopping from now?". Yeah that is correct, but i think there is a certain progress in how people shop. Its like you learn how to walk before how to run. When shopping centres become a norm, means brick and mortar shopping is too common, people then turn to online website like TAOBAO or AMAZON to get things they want at cheaper price, or simply because they want things that are unique. Singapore is slowly becoming like this.

Whereas INDONESIA has such a sprawling area, the potential of shopping centres are limitless. For example an area could be a village 10 years ago, but now it could have expanded to become a small city, and to the ex villagers there, having a shopping centre is new and refreshing. 

The RTO of SAIZEN reit also fell through. Abit of disappointment, i was waiting for that.

Ok. Enough of Reits. My investment to USO fund is a total flop. There is just too much oil and gas everywhere suddenly. Even with the OPEC trying to limit supply. shale gas is happily producing. I will monitor for a while more, may sell it. I dont know.  In the end EMAS CHIYODA has a new white knight in SUBSEA7. I wonder what's going to happen to EZRA? Will there be a white knight for them as well?


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