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I bought Mermaid Maritime, United Envirotech and Aspial
No longer had the luxury of time to blog on each and every transaction within days, I might as well consolidate them into a single article and post them when I had the time. Anyway, it will still serve my intended purpose to track what I do over the years and still garner some feedback, though not as timely as I hope to. But life is all about compromise, isn't it?
New addition to my portfolio since the MacArthurCook Industrial REIT error
- Mermaid Maritime on 19 January 2010
- United Envirotech Ltd on 22 March 2010
- Aspial 22 April 20
Qualitative Reasons behind Actions
1. Mermaid Maritime
Despite seemingly increased effort to cut dependence on oil by going into other forms of energy or greater 'green' efforts on energy conservation, I doubt the demand for oil will be drop in the next 10 years, enough for me to double my returns on all my oil related businesses. After SPC, CH Offshore and KS Energy, Mermaid Maritime is my latest acquisition in this business. Other than SPC, all of them are involved in support related services in the Oil & Gas industry. For Mermaid Maritime, they are primarily involved in tender rig drilling and sub-sea engineering. What attracted me was their seeminly good financial health (cash and equivalent slightly exceeds outstanding debt) and actually traded below net tangible assets.
2. United EnviroTech
If I'm crazy about oil & gas, I think I as crazy over water too, the other critical resource. I actually got into Dayen Environmental Ltd and got out immediately after I discovered a can of worms. The problem with me was that until I'm am vested into something, I could not find the energy to drill deep enough beyond the business nature, prospects and reported financial. When I knew Dayen actually had disclosure issues (one of them relates to reporting profits and projects clinched but not losses incurred), I got out as soon as I can and fortunately market irrationality allow me
even to exit with some profit!
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