Thursday, March 30, 2006

The Best Things in Life are Free

Despite the pro bono nature of the ideas put up for discussion, the last four ideas have performed admirably. The foregoing explains the basis for the title of today's column.

The most fruitful discussion centered on Thomson Medical which has rocketed up over 25% since our posting on 23 Feb. The market seems to have vindicated our post which highlighted its cheap valuation, on a relative basis to other medical counters. It is trading around S$0.365 today compared to S$0.29 then.

The next best performer of the lot is China Lifestyle. In a tongue in cheek remark, we called their CEO the Chinese Willy Wonka in a column on 14 March. But its returns have not been a joke. It's up 12.9% (from S$0.235 to S$0.27).

Of the four, Magnecomp is the most recent counter put up for discussion. It was featured when it was trading at S$1.37 on 16 March. Compared to the meteoric rises of the above two counters, Magnecomp's 3.7% gain is a tad sluggish (today: S$1.42). It is nonetheless a move in the right direction. We shall see if sentiment towards it improves in the days ahead.

Finally, the last one on the list is Tong Ren Tang. The HKEx listed counter was considered fully valued at HK$17.00. It is interesting to note that it is trading at HK$16.20 today.

Well, that's all for the wrap-up. It's always good to give oneself a pat on the back occasionally so long as we do not get carried away!

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4 Comments:

Anonymous zack said...

Congratulations, I hope you followed your own advice!!

12:41 AM  
Blogger Mr Market said...

Thanks, Zack. You always bring up an interesting perspective for discussion. I think the bigger question here is - alignment of interests. For me, it is always important to find out whether the manager/adviser is putting money where the mouth is. As Mr Buffett says, his net worth depends on the performance of BRK and it is a clear demostration of eating one's own cooking!

1:52 PM  
Anonymous Anonymous said...

Mr Market,

congrats..... China Lifestyle has rewarded you further ...

are you still vested in wbl?

7:56 PM  
Blogger Mr Market said...

Thanks for surfing by and commenting. As you pointed out, China Lifestyle has indeed continued to soar further to S$0.34. Thomson Medical has run up further while Magnecomp is lukewarm. There appears to be a fair bit of interest on G&W too which was featured on February 16. We will take stock of them all at a more appropriate juncture.

You asked for comments on WBL which was featured on 13 Sept 05. It was trading at S$3.40 then and today it closed at S$7.15. It would indeed be very tempting for one to close an open position which has yielded a return of 110%. However, in this case, you would have noted that the group is currently in the midst of re-structuring to further unlock shareholder value. As you may be aware, a survey form was recently circulated to shareholders requesting for views on aspects for further improvement. This may be a sign of better things to come?

Please feel free to provide further views or opinions as this blog is meant as a platform for discussion and ideas exchange, not specific stock recommendations.

7:17 PM  

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