Exited Beximco $BXP -4% Bangladesh listing falling fast

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EDIT 16/2/2020 – I reentered as the underlying bounced back.  I posted this on twitter – follow me there.

I have exited this – the Bangladeshi listing has fallen. It was c80p a share when I bought in – it is now 55p -31% and the UK listing is down c4%.  I have therefore exited.

There are rumours this is due to an accounting issue – I doubt this, the company pays good dividends and has been in operation a long time.

But I cant ignore the risk so for now I am staying out until the discount opens up again.

I will watch and wait.

Rosetti ($RSTI) / $FEES – Russian Grids at bargain prices

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I bought both of these the other week.  They are both very, very cheap and I believe are high quality assets that will rise in price as performance improves and Russia becomes a more ‘normal’ country.

 

FEES – Fsk Yees Pao is the largest grid company in Russia. 80% of the shares are owned by Rosetti, 88% of Rossetti shares are owned by the Russian government.  It is listed in Moscow and London via a GDR – I believe the Moscow shares are cheaper to buy and hold due to fees associated with the GDR. The likely yield is 8-10%. Continue reading

New Investment – RusHydro ( $HYDR)

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Posted a few new investments on twitter that I thought I would update you on.  I have found Russia rich pickings for a lover of high yields and low PEs.

I wrote this a few weeks ago but didn’t get it posted as I have had an unfortunate festive flu – figures maybe a little more out of date than usual. I am long from 0.51 (Late October), (currently 0.5895 so +15% in a couple of months) but think there is still value, I literally bought a touch more on Friday.

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Beximco Pharma – Bangladeshi Pharma at a discount to local value

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Got this idea from Mello stock slam.  I quite like it, bought a just under 3% weight at 42.9 earlier in the week.

This is a Bangladeshi Generic Pharma GDR listed on AIM.  There is a substantial discount to the listed Bangladeshi co which is trading at the UK equivalent of 74p – a c40% discount to the Bangladeshi company.

There have been lots of fly-by night overseas domiciled companies on AIM.  I don’t think this is one of them.  Firstly the sector is pharma – highly sensitive and regulated – not the ideal place to operate a scam.  Secondly, the company was founded in 1974 – so it has been going quite a while.  This is one of the biggest / most liquid companies in Bangladesh.

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Moscow Stock Exchange (MOEX)

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As I tweeted the other day I have just bought some Moscow Stock Exchange (MOEX). Increasingly I am tempted by low price, high quality companies in somewhat lower quality locations.

To me MOEX meets the quality bar.  It has a dominant market position being the only exchange in Russia, it has an EBITDA margin of over 70%, a net profit margin of c45%.  There hasnt been much growth in operating income over the past few years – but it doesnt really matter as this is very, very cheap.  It is trading on about twice book value and a PE of about 10. Continue reading

New Investment – Global trans

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Just bought some Global Trans (GLTR.L) – 2.5% portfolio weight (I tweeted about it the other day) this is quite a nice little Russian investment.  They basically operate railway freight in Russia.  This is not without it’s risk.  But yield is very high – c16% in 2018, 2019 dividend of $1.45 (half paid already). PE is low – c5.4 for 2019.  It isn’t either that this is a company on the brink of bankruptcy either – net debt to EBITDA is c0.53 – RUB denominated, and the company has lots of railway freight assets – book value is c$4.7 per share vs a share price of c$8.7.

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New Position – $AJOT – Asset Value Investors Japan Opportunity Trust

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New position this week – AJOT.

Unusually for me this is an investment trust trading at a small premium to NAV- about a 4.5% premium.  Something of a first for me – as regular readers will know I like a trust on a discount – but I am prepared to make an exception here. It’s my first decent sized new position in a while at about a 6% portfolio weight.

Asset Value investors are a value investment firm based in London who manage British Empire securities – I covered it a while back and should have bought some. They had realised that they were doing c20% a year in Japan with their activist / deep value realisation strategy and decided to launch a fund doing the same thing, focussing on it.

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