That’s why I buy Global Brands (787.HK)

I saw a lot of people inquiring about the reasons for buying a brand of profitable brands. Therefore, I will briefly talk about the detailed analysis. I will wait until the net is removed in March, because the length will be slightly longer.

The reason why I bought the target is very simple. It is only for the “incidents” that may occur. I am not gambling on the reversal of my performance. I do not believe that the business of the target can be reversed in the next one or two years. Therefore, the purchase of the target is pure. It is an event-driven event that may occur. The main reason for the trigger event is that the company announced a special interest of 0.28 yuan per share, which can be used to scrip dividends, while the major shareholder has disclosed the intention to choose to use the stock to scrip. Assume that most of the minority shareholders will choose cash dividends. If only the majority shareholder chooses to scrip dividends, then the current shareholder will calculate the dividends of up to 810 million yuan, which will be converted into shares at a price of about 9 cents per share. After the completion of the scrip dividend, the major shareholder can exchange about 9 billion new shares, and its shareholding will be greatly increased from the original 33.88% to nearly 68%!
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BJ Water (00371): Double Win Plan

Beijing Enterprises Water has announced the placing of a 5% new share to China Changjiang Power International Co., Ltd., a wholly-owned subsidiary of China Yangtze Power Co., Ltd., which is listed on the A-share market, at a price of HK$4.29 per share. Upon completion of the Placing, China Changdian International will hold a 4.76% stake in Beijing Enterprises Water, and once Changjiang International has increased its shareholding in the market and its shareholding reaches 10% or more, Changdian International has the right to nominate a candidate. Serving as an executive director of Beijing Enterprises Water.

This placement and business cooperation agreement is beneficial to both parties.

I personally feel that this time through the placement of China Yangtze Power shares as a shareholder, and reached a cooperation agreement, there are two major advantages:

1. It is a major business opportunity for Beijing Enterprises Water to participate in the Great River Basin protection.

2. The notice mentions that once China Changdian International absorbs 5.3% of its shares in the market and its shareholding exceeds 10%, China Changdian International can nominate a candidate to become an executive director of Beijing Enterprises Water. In the future, Electric Power International has laid a heavy burden in the market. Why do you want to hold more than 10% of the shares and be able to appoint an executive director? I believe that it is necessary to make Beijing Enterprises Water Water become an associate of China Yangtze Power Co., Ltd., which is listed on the A-share market. Everyone may ask why it is only 10% of the shareholding, which is enough to make Beijing Enterprises Water become an associate of Yangtze Power. My own opinion is:

a. When surpassing 10% equity, Yangtze Power can appoint a candidate to be the executive director of Beijing Enterprises Water, which is sufficient to participate in the daily operation of Beijing Water Control and has significant influence, but has no control;

b. There will be continued important business contacts between Beijing Enterprises Water and Yangtze Power in the future.

Based on the above two points, I personally feel that even if Changjiang Power only increases its holdings to 10% in the future, although it is less than 20% of the equity, the account should be able to list Beijing Enterprises Water as an associate of Yangtze Power, rather than a simple financial investment.

If Beijing Enterprises Water has become an associate of Yangtze Power, what benefits does it have for Yangtze Power? This is a major incentive for Yangtze Power to increase its holdings of Beijing-controlled water in the market.

Finally, Gloen’s article set a target market value of 100 billion for Beikong Water (equivalent to a stock price of about 10 yuan). I feel too optimistic myself; if the stock price can regain 6 yuan, I am very satisfied.

[Funny] Do not provide any investment advice is correct!

My mother-in-law like invest stock too, she love invest on Large Stocks and I love invest on Small and Medium-sized stocks either.

She saw the HSI decrease intensely in June 2018 and buy 1398 as the “LOW” simultaneously. Then, the stock price is turn down. In November 2018, she ask me: “Will the stock drop deeply? Should I sell all of stocks?”

She know me is monitor stock market closer, so she always ask my questions and options. But I said I am focus on small and medium-sized stocks, large stock is not my investment target. I also know I will not good if my options are fault, therefore I answer the question with ambiguous.

2018 Reviews & Summary

To write a review in 2018, we must first look at the annual transaction records and bring back some bitter and painful memories.

At the beginning of the year, the stock market was bullish, and the rise of several awkward stocks caused the portfolio return to exceed 25%. However, the year-end settlement was the first negative gain in the last decade, and the combination bid farewell to 2018 with a score of -1.3%. The turning point from Shengsheng to the decline was that at the end of August, two awkward stocks, Lifu China (02136) and Orange Sky Golden Harvest (01132), fell sharply. Although they were in the Awkwardness Convergence Technology (01729) and Oasi Group (01161) from the low level Driven by the rebound, the combination has recovered positive returns, but the major stocks at the end of the year have reappeared. In particular, the performance of the Aos Group was less than expected, and the stock price plummeted, making the portfolio ultimately weak and unable to continue for the past nine years. Continuous positive returns.
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Outlook 2019 : Hope for tomorrow

After today, we officially farewell to 2018. On New Year’s Day, I would like to write and review the past of 2018. Today I am going to writing the 2019 outlook first.

Looking back at the 2018 and forecasts of the investment bank at the end of last year, they are wrong at all. The only difference is that there are a few mistakes. Looking at some of the sarcasm articles of snowballs a few days ago, it is said that a Chinese proprietorship’s 10 predictions in 2018 at the end of last year are very powerful, only half of them, and the difficulty is very high. In order to avoid being the object of ridicule by netizens next year, I will not write too much, just to explain the outlook for the first quarter of the year.
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