Only when we acknowledge the challenges ("winter"), we are able to overcome it.
Pase is definitely a tough place with uncertain outcome. But his margin of safety and small investment should carry it over.
Yes guru GG.... Mr Wong is a man of integrity and he does take care of shareholders
I was very very lucky to cash out my stake last year.
(15-11-2015, 01:28 PM)Contrarian Wrote: [ -> ]Yes guru GG.... Mr Wong is a man of integrity and he does take care of shareholders
I was very very lucky to cash out my stake last year.
I fully agree. In a long winter like this that he has openly addressed and admitted, there i still dynamism within the organisation to innovate.
I think this is the spirit of the company helm by that of a leader.
So far, my experience with Mr Wong has been that of tough luck...
If u remember... BP recently topped a land tender and HDB deemed the winning bid that is 18% higher than that of AREIT was not good enough... I just feel for the man and his team... how to do business in Singapore when you are so serious about it not helped by administrators?
Anyway, in a long winter like this I am definitely sure that Boustead will take full advantage of it and do even better when the good times return... as for the rest, let's just wait for the blood.
GG
(16-11-2015, 10:27 AM)Bibi Wrote: [ -> ]Apple Spore operations fully powered by solar
Will this spell the end of oil/gas industry in the next decade?
Vested.
nvr say nvr but renewal energy costs remain quite high and there remains a price to go green.
Boustead has previously attempted to go into Solar Farming in Japan but we have no heard any more updates... maybe they no longer find the forays viable?
(16-11-2015, 10:27 AM)Bibi Wrote: [ -> ]Apple Spore operations fully powered by solar
Will this spell the end of oil/gas industry in the next decade?
Vested.
This is quite out of topic, but @ $40, it's practically impossible for renewable energy to beat the good ol' black gold.
Not to mention, if it comes down to it, the same oil/gas players will just be switching over green energy. So impact, if any, will be quite limited.
Personally, I think chasing the cheap won't make Boustead big. Probably it's time to move on to chase Good Biz at reasonable price (think of ESRI) than to chase cheap & shorter term ventures (think of OMH, Biotreat, solar panel in Japan, big box and current gas field). Case in point (pardon the generalisation), Bershire became big & more sustaining when Buffett is more Mungerized.
IMHO, the main difference between the former & latter is in the Management.
The problem may be that the larger the acquisition, the higher the risks too. FF Wong has always been conservative and I am sure he has learnt from his past mistakes.
I'm not surprised to read about the latest setback. Think about it though - BSL has gone through a lot over the years (including the Libyan crisis) but has always managed to generate good FCF and continue paying dividends. Seeing both their divisions at a cyclical low (i.e. O&G and Real Estate), perhaps this is when true value emerges.
I don't think they need a large acquisition; in fact they may not even need bolt-on ones; but they do need to run their existing operations smoothly to sail through this storm.
(Vested)
I have no doubt in FF Wong's conservativeness.
He has proven times and again in several past ventures:
1. Managed a triple return from its bet in Biotreat, albeit insignificant numbers as compared to BSL market cap.
2. Escaped from OMH venture timely, look at the price now!
3. Japan's solar panel, no news, probably insignificant bet.
4. Wuxi industrial venture, good return albeit small figures.
Those are all very conservative value bets with its shorter term in nature.
It's more of the Graham's bets than more sustainable and good Management/Business focused Fisher Investments.
I hope FF Wong's legacy in Boustead would be in the latter rather than the former.
He could have handled the former bets conservatively well, but I doubt his successor would be as good.
IMHO, buying great business with reasonable price is probably what is lacking in Boustead.
<vested, one of my core>