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This guy has 800K in his CPF. (AK responds to HWZ Forum.)

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International Healthway Corporation (IHC).

Wednesday, January 25, 2017

Many readers write to me asking for advice on certain stocks which they hold or are thinking of investing in. They are usually disappointed by my response. 

Why? I also don't know. Disappointed by my answer? OK, I gave the correct answer.

Today, a reader wrote to me about a business which I actually have a stake in but I am sure he was disappointed by my response too.

AK says:
I don't have anything constructive to say about International Healthway Corporation (IHC) but I can tell you a story.

I have a handful of stocks in my investment portfolio which I don't monitor anymore for various reasons. There is one stock which I did not monitor at all from the day I got it and that stock is IHC.

I vaguely remember being given some IHC shares because I am a Healthway Medical shareholder. I vaguely remember that my Healthway Medical shares were free of charge. Bonus shares or something. 

So, there was little incentive for me to monitor the business performance as, by 2011, I retained a rather tiny investment in Healthway Medical, having sold the bulk of my investment by middle of 2010. (See related post.)

To be honest, I was a more active trader in those days. I got in at about 10c a share and I almost doubled my money as I sold on the way up. From 10c, just a 1c increase was a 10% gain. It went all the way to 21c a share.

What is the moral of the story? Is it about position sizing? Is it about knowing our motivations? Is it about knowing when to sell? I blur.

Related post:
Healthway Medical: Target 20c.
Read ST article: here.


AK71 said...

"OUE said Monday night that it had, over the course of the day, acquired a 12.54 per cent stake in IHC for 7.7 cents a share." Source: ST, 24 Jan 17.

AK71 said...

"Our conservative valuation puts IHC’s asset value at SGD 515 million, which represents an upside of 92% to IHC’s current share price."

AK71 said...

Mr Havard Chi, portfolio manager of Quarz Capital Management which has also recently bought IHC shares, said: "The Riadys who control OUE have substantial expertise in the healthcare and property sectors through their ownership of Siloam (one of the largest hospital groups in Indonesia), First Reit and Lippo Karawaci. They understand the value and the potential of IHC's assets."

AK71 said...

The fight for control over one of Singapore's largest private clinic operators is heating up.

Hong Kong-listed Lippo and Lippo China Resources, controlled by Indonesia's Riady family, on Tuesday launched a cash offer to raise their stake in Healthway Medical Corp (HMC) at 4.2 cents a share.

The offer comes shortly after Lippo first showed its hand at the end of December last year when it scooped up a 6.05 per cent stake in HMC in market transactions.

The Lippo offer is also subject to it having received, by the close of the offer, valid acceptances for it to control more than 50 per cent of the voting rights in HMC. Lippo-linked entities had a 13.29 per cent stake in HMC as at last Thursday.

At 4.2 cents a share, Lippo's offer represents a premium of 13.8 per cent, 19.7 per cent, 19.3 per cent and 22.1 per cent over the volume weighted average price per share for the one-month, three-month, six-month and 12-month periods immediately prior to the offer announcement.

HMC shares rose 0.1 cent or 2.5 per cent to close at 4.1 cents on Tuesday before the announcement was made.

Mr Havard Chi, portfolio manager of Quarz Capital Management which has a stake in HMC, said: "We think Lippo's offer undervalues the company, but is definitely superior to the convertible bond deal which HMC is pushing to shareholders.

"We as shareholders will either tender our shares or vote actively against the convertible bond deal in any extraordinary general meetings."

Mr Chi added: "This solidifies our thesis of the strong interest of the Lippo group in building up their successful healthcare franchise in Asia."

Last month, OUE, which is also controlled by the Riady family, picked up a 12.5 per cent stake in International Healthway Corp, the medical property developer that was spun out of HMC, in a off-market transaction.


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