Had a couple of changes to my portfolio so now is a good time to give an update. I sold my entire position in Emeco Holdings (ASX:EHL) after I reconsidered the downside to be unprotected. My original post on it had estimated liquidation value based on a 25% discount to its plant and machinery, however after shutting down its Indonesian business it could only sell equipment at a 50% discount. I contacted management and they confirmed that these were global sales and the discount reflects a worldwide decline in their saleable value. I view Indonesia’s mining collapse as a political anomaly but this steep discount has worried me as a 50% discount to all equipment essentially wipes out the companies equity.
I think there is a good chance the company will survive and if there is a recovery in mining then this stock will trade at multiples of its current price. But I am conservative and this company simply can’t survive any further problems and there is no protection on the downside for shareholders so I exited.
I sold at $0.0245 which was above my purchase price, but the currency moved against me and I lost 4.3% on the position in £ terms. This is my largest realised loss on a single share; I can only hope that I continue to only suffer small losses from my mistakes.
Purchases & Portfolio
After my Pental article I purchased shares and it is now a 4.4% position. This is how my portfolio now looks.
|Craven House Capital||29.9%|
|Clear Leisure plc||3.2%|
|Weiss Korea Opportunity||10.7%|
I hope to soon be putting another chunk of that cash to good use with a new prospective investment currently on my desk which just needs some further due diligence before I pull the trigger.
2 thoughts on “Portfolio Update”
I absolutely hated it that WKOF’s price ran away when I tried to accumulate. It’s essentially an arbitrage with a fixed upside. It’s difficult to get myself to chase the price.
Wow, your holding in CRV is lopsided. But it looks like I can’t buy it via my broker InteractiveBrokers for overseas stocks from Australia.
Yes CRV is quite big, was originally about 15-20% and has run up 80% since, but book value has also increased massively so I still see upside.
I had a chance to reduce the size last year at about book value but I got greedy and held on, that’s cost me quite a bit lol.