Monthly Archives: August 2018

The importance of diversification

Originally, the title of this article should be “Awful August”, but I revised the article, I decided to change to the current title, and I want to bring out the importance of diversification.

Let me talk about the situation in this month. In percentage, this month is the most retracement in a single month after the January 2016, I have no intention to calculate carefully and I know that it should be about double-digit retracement. The stock market crash has not arrived, but my portfolio has decreased faster than the stock market!
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Winning or losing does not matter

Today’s decline should be the end of the past two weeks rebound (close to 1600 points).
During the rebound, Chinese people continued to cash out and large households also sold out.

The record-breaking capital of Chinese people, together with a short-selling rate of 13.9% this month, it mean the big prophets are prophetic and deploy easy money. The stock market is optimistic in the next two or three months.
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Orange Sky (01132) – Back to the past

Orange Sky, who once had a very profitable book, reached a 7-digit profit. Now he is basically close to returning to his own cost price. It is truly returning to liberation or nanke dream can also be.

Since the sale of China business by Orange Sky, the practice of major shareholders has been very positive, including the full exercise of the call option of $0.84 ($0.24 after interest rate), the increase in the market, and then large repurchase. The use of funds is also very reasonable, including a special dividend of $0.604 per share for the first time, and a 50% stake in Singapore Carnival Films with a total of 1 billion, making it a wholly-owned company of Orange Sky Golden Harvest. The above-mentioned series of practices can not find any flaws, but also made me less wary. Orange Sky has always been the biggest shareholding in my portfolio. After two special interest rates, the shareholding ratio was close to 12% as of yesterday.
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A connected acquisition of Orange Sky (01132)

Returning to Hong Kong in the evening, I saw the notice of this connected transaction when I got home. Seeing that I had a bad cold, I really couldn’t lift my spirit to go deep into the study. So I took a nap and waited until I woke up in the middle of the night to study it again.

It is reasonable to say whether the purchase price is reasonable. When you see a connected transaction, especially when you acquire the assets of a major shareholder, the market usually feels that it is not a good deal. Mr Ng injected the project of Jiangyin Orange Tiandi into the listed company at a price of 560 million yuan to acquire a 93,000-square-meter complex in Jiangyin, which is a movie and hotel-themed complex. It is not cheap, it is definitely cheaper than The reasonable price is a few times higher. Secondly, the complex is still not in operation. Without performance data, it is unknown whether it can make a profit.
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