Zico Special : After the Stand-Off – China Taiping Insurance
With the protestors still on the streets of HK, stock prices have yet to stabilised. But the protests have hurt the businesses in downtown HK and the momentum of the protests has also dissipated. Therefore the strategy of buying into the market remains.
The announcement of the rights issue caught investors, ourselves included a little by surprise. But at the same time it also removes the capital overhang. Bluntly put, the company needs to capital because the business opportunity is attractive. We will subscribe and the price target remains an attractive HK$23.
More stocks have become very attractive, especially in the healthcare and technology space. They tend to be smaller cap issues and we look to highlight them in our subsequent postings. It makes sense to focus on the larger caps first in times of such volatility.
A Bit About Zico
Zico is our in house equity consultant who is currently a private fund manager with more than a fair share awards in the course of his illustrious career.
Having managed both global and also regional themed equity portfolios, he specialises in stock picking that maximises returns for his various absolute return portfolios.