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19-12-2012, 09:13 PM
Hotung is a forgotten listed VC. Just like other investment holdings, there is usually a discount tagged to the reported book value.
Ignoring the geographical coverage and parentage, Hotung is trading at a steeper discount than K1. Moreover, Hotung has negligible debt and hence one can simply look at how much you are paying for cash and investments.
About 1/3 is cash with the balance in investments. Valuing investments is a more difficult tasks with VC given that the time horizon associated with the realisation of the investments is uncertain. This includes that of investments that have successfully listed as well.
Nevertheless, for Hotung that pays good dividends and doing consistent sharebuys, I personally do not think that anyone with a long enough time horizon will go too far wrong.
Just hope that it may be heading for delisting at a reasonable valuation in the future.
Ignoring the geographical coverage and parentage, Hotung is trading at a steeper discount than K1. Moreover, Hotung has negligible debt and hence one can simply look at how much you are paying for cash and investments.
About 1/3 is cash with the balance in investments. Valuing investments is a more difficult tasks with VC given that the time horizon associated with the realisation of the investments is uncertain. This includes that of investments that have successfully listed as well.
Nevertheless, for Hotung that pays good dividends and doing consistent sharebuys, I personally do not think that anyone with a long enough time horizon will go too far wrong.
Just hope that it may be heading for delisting at a reasonable valuation in the future.
(19-12-2012, 04:45 PM)Share Investor Wrote: Anyone looked at this company before? Lots of cash and trading at a discount to NAV. Plus good dividend. And company has been consistently buying back shares.