-It has been hit by a perfect storm of down events but that is over now and the down turns are turning, in retail, infrastructure, oil, ports, even telecoms a bit.
-They will do some growth capex and acquisitions (infrastructure)
-Telecom is pretty much written off and in cash cow mode.
-Obviously the dividend.
-Sometimes, some stuff does not work out and it's part of having a portfolio. It will turn positive when some other stuff in my portfolio will hit a speed bump. so selling now would be an error in that sense.
I still hold, but not sure the bad news is over. Will have to wait and see. Totally agree with the perfect storm. CK hutchison actually handled it well in my opinion.
I subscribed and linked to this post in my Monday links post: Emerging Market Links + The Week Ahead (May 20, 2024) https://emergingmarketskeptic.substack.com/p/emerging-markets-week-may-20-2024 I can't remember if Joe Studwell talked much about CK Hutchison in his books on Asia (Asian Godfathers + How Asia Works etc) which are dated BUT he did cover all the shell games other Asian conglomerates or their "godfathers" play on minority investors 😀
Both would make sense & help the share price. Stock has reacted somewhat positive on this news. Personally, I don't value such rumors highly. Will be interesting to see what management will say at presentation of H1 2024 results.
Read some of Joe Studwell's books on Asia - Asian Godfathers + How Asia Works - they are dated but cover Jardine Matheson who has long not treated minority shareholders so well... However, I do think they have improved corporate governance... Not familiar with Aker...
I still hold for several reasons:
-It has been hit by a perfect storm of down events but that is over now and the down turns are turning, in retail, infrastructure, oil, ports, even telecoms a bit.
-They will do some growth capex and acquisitions (infrastructure)
-Telecom is pretty much written off and in cash cow mode.
-Obviously the dividend.
-Sometimes, some stuff does not work out and it's part of having a portfolio. It will turn positive when some other stuff in my portfolio will hit a speed bump. so selling now would be an error in that sense.
I still hold, but not sure the bad news is over. Will have to wait and see. Totally agree with the perfect storm. CK hutchison actually handled it well in my opinion.
I subscribed and linked to this post in my Monday links post: Emerging Market Links + The Week Ahead (May 20, 2024) https://emergingmarketskeptic.substack.com/p/emerging-markets-week-may-20-2024 I can't remember if Joe Studwell talked much about CK Hutchison in his books on Asia (Asian Godfathers + How Asia Works etc) which are dated BUT he did cover all the shell games other Asian conglomerates or their "godfathers" play on minority investors 😀
Sounds right up my alley. Thanks for the tip. I always like book recommendations!
Recently there has been some news around CK Hutchison:
1. News around listing of European telecom assets: https://asia.nikkei.com/Business/Markets/IPO/Hong-Kong-s-CK-Infrastructure-weighs-overseas-secondary-listing
2. News of a secondary UK listing of CK Infrastructure https://www.reuters.com/markets/deals/ck-hutchison-reviews-options-european-telco-assets-sources-say-2024-07-10/
Both would make sense & help the share price. Stock has reacted somewhat positive on this news. Personally, I don't value such rumors highly. Will be interesting to see what management will say at presentation of H1 2024 results.
For sum of the parts investments jardine matheson and aker might ve good candidates now
I do like Jardine Matheson, but did not like Hong Kong Land previously. Prices have come down, so might be interesting.
Jardine Matheson is very cheap now
Read some of Joe Studwell's books on Asia - Asian Godfathers + How Asia Works - they are dated but cover Jardine Matheson who has long not treated minority shareholders so well... However, I do think they have improved corporate governance... Not familiar with Aker...
Given that returns on capital are so low and there is so much debt aren’t they destroying value?
Not sure I get your point. Returns on capital are below expectations, but still ok. Net debt is 16.1% of capital so not very high in my book.