I'll reduce my positions in some real estate stocks now.
Mainland China/Hong Kong property companies: Closed my position in CDEVY. Partial sale of CHEUY. Been in CDEVY,CHEUY for four years, and that's enough for me - CHEUY price is up only about 5-10 percent from original buys. I got into these stocks after reading of Marty Whitman's buys and his rationale for these property companies. Reading his current quarterly, I see 3rd Ave fund still likes these HK stocks, esp. CHEUY. Their reasoning for CHEUY looks weak to me though -- company prospects are good/controlling stockholder is adding. Well the company prospects were good four years ago too, and nothing much happened over that time as regards the stock. Further, of the several China property stocks mentioned, CHEUY has the highest p/stated bv, and to me, that suggests CHEUY might still have the least potential for price appreciation. (p.9 of presentation: thirdavenuefunds.com ). I intend to continue to hold Wheelock (WHLKF.pk) and a few shares in 2nd tier mainland companies: CHLN and XIN.
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Closed NRF stub. I decided I don't understand the company's business or prospects enough. NRF might be one of those that's too complex for me to ever understand. It's too scary for me to want to make a decent $ commitment, so, other than the good distribution yield, I've got no good reason to keep a stub position in the common shares. (Aside: the preferred shares are followed by Jurgis Bekepuris.) |
