Cashing Up With Li Ka Shing

It was just a fortnight ago that I wrote about the richest man in Asia.

Sellers’ Largesse Continues With Li Ka Shing ( 04/10/13

He is at it again in a short time.

Oct. 20 (Bloomberg) — Billionaire Li Ka-shing’s Hutchison
Whampoa Ltd. said it’s scrapping a private sale of its ParknShop
supermarket chain and is considering selling shares in its A.S.
Watson Group retailing unit.

Everything is up for grabs. Li Ka Shing is not stopping on his liquidation drive which he started 2 years ago. Hearing he got into a small scrap in his European power grid business which was overloaded from excess power the other day, forcing him to pay users to unload the power off him (unverified). Still, he is bailing out from Hong Kong, perhaps not a moment too soon especially with the 3rd plenum of the CCP Congress coming up next month where reforms are expected to be rolled out in force.

He is not alone, I suspect.

I caught up with my old friend, a very sharp equity manager, who will finally be a father soon ! Congratulations.

He is cashed up too since he suggested to me a few weeks back that I should get into some out of money puts for the S&P.

The Li Ka Shing style is the Billionaire Boy style method – buy a distressed asset that only a handful of people in the world can afford, wait and then IPO it for a multiplied notional and voila, the profits are yours.

Now that he is getting out of here, we do not want to stand in his way, do we ?