Friday, November 3, 2017

Sold off Tropicana-WA and bought 6500 Ekovest

Through the sudden reaction on Ekovest's shares, I have decided to buy more Ekovest and sold off Tropicana-WA.

The reason I sold off Tropicana-WA is because it is a warrant and I wanted to reduce my short to medium term exposure risks. Also, as I am going to put my money into a construction, property related stock, it is better to keep the exposure at a certain percentage. Tropicana, on my other investments in fact I still keep to my investment as the emergence of Tan Sri Lim Wee Chai is good for the company business-wise and investment wise. It is just that my fund over here which I started with RM50,000 is limited and I have to make the best use of it.

Ekovest is a stock which I have liked. I have in fact invested into this company - for this fund - prior to it being split from its bonus issue early this year.

I also find it ironic that UOB KayHian is downgrading Ekovest from RM1.45 to RM1.04 i.e. a drop of 41 sen with the announcement of the proposed acquisition of IWCITY. That is a downgrade of RM877 million and this amount is more than what Ekovest is going to pay for the 62% of the minority stake of IWCITY which is RM800 million cash or RM1.50 / share towards the IWCITY minority shareholders if it is using cash.

I usually like to target these funds as funds are supposed to be principled when they write their calls as they are so-called professionals. Investors are supposed to trust them. I however find some of them to be not-principled as they put a price without good justifications.

I have written quite a bit on this company and here are some of them.

Is Ekovest Investible?
A look into Ekovest
Do not sell Airasia, WCE and Ekovest
What is IRR 10% - where I first invested into Ekovest for this fund at RM1.30 for its warrant

One can also find the funds here.

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