Thank You & Good Bye “ CROESUS Retail Trust “


This is the 3rd company in my portfolio being privatized after Sim Lian and ARA Asset Management.  I have blogged about The Good or The Bad “ of privatization before (here ).

As I mentioned before “  Whether privatization is good or bad for shareholders, I’m sure it depends on your entry price and in the eye of the beholder.”


In most of the case, the offer price for the company being taken private will be higher than last trading price or premium over NAV. As such, some investors tend to spot or try to identify which company will be the target of privatization in order to enjoy the price difference of before and after the announcement of privatization.

At least, these are the target is given by some of the brokerage houses in Apr 2016 :



Check it out !!….. how many companies in the list being privatized since then…..


According to this report, there were a total of 26 privatizations in 2016 which caused SGX’s market cap to shrink by $15.5 Billion. ( Full report here ).



Well, let’s leave the headache of how to stop the “shrinking market cap” of SGX to their management and instead, let’s focus on finding companies which are “undervalue “ base on fundamental analysis and financial background.  Hopefully, the value may emerge eventually be it due to “privatization “, “capital distribution after divestment “ or  in the form of “special dividend after spinning off some of their business entities or subsidiary”.



Cheers !!



Quote Of The Day :

“Investing should be like watching paint dry or watching grass grow. If you want excitement…go to Las Vegas.” Paul Samuelson







PS: Trading summary: XIRR for CROESUS RT since 2013








I am really happy to see the returned of 16.8% since 2013, Thank You CRT.

If you may notice that I sold more than 116 lot of CRT in Nov 2016 and bought back some eventually. One may wonder what prompted me to sell such huge vol of CRT as there is no much change in their underlying business and fundamental.

You may also notice that I wrote about " Demographics Trend " for Japan ( Here ), I was so stupid and silly to think that "demographic " changed and E-Commerce may have an impact on their business at large in the long run... Yes, the keyword here is " in the long run " not immediate ....else, I may have made $37 K more than current ...

Well, by hindsight, because of this "privatization ",,, else, the end result might be different ...again, "in the long run " ... 😊

Again, I am happy with an annualized return of 16.8% !!



Comments

  1. Pls delete the above comment. the writer is doing SEO on keyword "Singapore Stock Market"

    The stock is already delisted and yet she is saying not selling. What a joke!

    ReplyDelete
  2. Thanks LKH ,
    Comment deleted .... thanks for the highlight .. :-)
    Cheers !!

    ReplyDelete

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