Update 3Q 2019 (1)

 Line@嗨投資小幫手  『 募集中 』 

Taiwan Equity Portfolio:Investments that drove the valuation uplift driven by two bank stocks, E-Sun and Hua Nan as well as by one auto component company, Lu Hai Holdings, which has recovered from its lows in 2018. However, one stock that doubled its price this year is La Kaffe. Despite being a small satelitte position, the investment contributed to the satisfactory portfolio returns. I've sold most of the shares in La Kaffe over the course of 3Q. Post the quarter-end, I took/ am taking some action to rebalance the portfolio and planned to reduce the exposure to the auto sector (was at 19.7%). Today, the exposure stands at approximately 15%. Even though I am positive on Lu Hai, tire velve manufacturer, I sold and plan to sell some shares in the company. The company was my second largest position in 3Q 2019 and will remain one of the key investments (perhaps no. 5 or 6) when I finish up portfolio rebalancing. The auto sector is cyclical and is easily affected by the economy slowdown (or even crisis). To be on a conservative side, the replacement should be resilient in some way. I added Taifer, with a view that the downside protection is coming from its land bank and investable real estate assets. One investment veteran wrote about Taifer and I agreed with him after I did my own research. The investable assets on the B/S are NTD35.8 billion while its market valuation of these assets is close to NTD100 billion. To be on a safe side, I assume its market valuation is about NTD70 billion. It is still a significant step-up to its book value. The company has low debt and has a history of providing dividends over a long period of time. If we take a long term view, Taifer will benefit from its efforts to monetize its real estate assets. More importantly, the core business is profitable. Taifer has similar traits as Longyen, despite that Taifer's core business might be more cyclical. If we are heading to market crashes tomorrow, I can sleep well with these two companies. Unfortunately, the price has started to move up today and I hope I can accumulate shares to the point I wish to have.   

 Line@嗨投資小幫手  『 募集中 』