E Tough Week For Foreign Investors

I have just posted our performance tables after returning from my volunteer work. You can view whatever you are qualified to see at www.global-investing.com

Everyone can view the closed positions table but only paid subscribers get our current positions and my opinions on them.

It was a tough week for investors outside the US mainly because of currency factors. A combination of low Euro-land interest rates, fear of Scottish secession, and political uncertainty in Hong Kong, Brazil, the Middle East and the Ukraine led to a boost in the US dollar which made all non-dollar investments sag. Even the Canadian loony is down.

One of our shares took a bad hit after a poor half-year result and omission of its dividend, Naibu, a Chinese sports wear and shoe business listed in London. Following its brokerage and nominated advisor (Nomad), we have cut it to hold. I am not actually bothering to sell this share now as it was hard to buy and cost a higher commission in London than it would have stateside. The main problem the company faces is the impossibility of hiring workers for its new factory, which resulted in its outsourcing sneaker production. This raised costs and hit profits. But it is on track to build a new factory inland from the high-cost east coast which over time should solve its problem. It is the No. 10 maker of youth clothing and footwear in China where locally-made goods have appeal. So let us hang on. More than half the shares out are owned by the company CEO which can act as a ballast.

Another share I am worrying about its Nokia, because I am worried about what it can do to repeat its triumphant sale of its cellphone side to Microsoft. I have hopes for its HERE mapping service as an automobile driving aid, but I am not sure it will nab e-commerce mall business. And the telephone exchange business is highly competitive.

Now for the upbeat side. Because it has the same analyst and the same Nomad as NBU, a pall has fallen over another Chinese share listed in London, China Chaintek, CTEK. It is in the logistics business, which is an area I want to be in given the rise of e-commerce at a rocketing pace in China. Logistics in this case means running warehouses from which goods are shipped in relatively small batches for many manufacturers using combined trucking or rail. This is much too small and boring for Alibaba to bother with but there are many small companies meeting consumer needs. It is a best buy because ultimately the problems of NBU have nothing to do with CTEK.

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