Saturday, January 5, 2019

Updates and Revelation of Big Idea 2

As per my Big Ideas Investing Theory, many of you may not really know the company behind my Big Idea 2.

It is a company which I have held for more than 2 years and I had communicated significantly in my blog.

Since 18th Sep 2018, Big Idea 2 has announced that it is in talks to sell one of its 76% owned subsidiary. This subsidiary is the company's main Cash Cow!

As of yesterday, the company had announced that it had confirmed the full disposal of the subsidiary with a gain of over US$69 Million!

Abstract from Announcement

Abstract from Announcement
This is probably the best news I had heard for my investing journey since 2018!

Anyway, without further ado, it is time to reveal the company... the company is Chuan Hup Holdings Ltd!

With the help from the calculation method as per my previous post on the company, the indicative book value of the company seem to be in the range of between S$0.500 to S$0.545.

In Short

With the book value in mind, my strategy to exit my holdings will be an art. I plan to do it in 3 tranches. The first tranche will be in the range of $0.350 to $0.400. The last tranche will be to wait for the next dividend announcement.

In the event, the share price of the company did not react accordingly to my plan, I will also plan to buy more instead.

In my opinion, this event also emphasized that my way of investing probably requires at least 2 years of holding before a significant gain arises!

Do also note that as of 15 Dec 2018, the company, at the price of S$0.295, has been deem as an undervalued company via The Ultimate Scorecard. 


If you are interested to know more about The Ultimate Scorecard, do visit the Fundamental Scorecard website for more information! 

Please do your own due diligence before you invest this counter.

We have also released the Moat Scorecard with InvestingNote. Do take a look!

Oh... and do remember, please like our Facebook page (T.U.B Investing) and follow me on InvestingNote.

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