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The Squirrel’s Drey Turns One – An Anniversary Review

The notification came to pay up for another year’s subscription with the expiry of the one-year subscription to the web host, which was a timely reminder that the Squirrel’s Drey has reached it’s first anniversary. In this post, a brief review of the stocks being discussed in the past year will be done. You would have noticed that there are only a few being discussed during the year because to put it simply, my investment preference is to focus on a few names. I can’t keep up with too many companies and their developments. Hopefully, with each anniversary, this same exercise can be repeated. And no, I don’t foresee the number of names discussed on an annual basis will increase. There is no need, from my perspective, to discuss companies that doesn’t pass my criteria. I am not here to generate traffic. Just here to share what I enjoy doing. This is not financial advice.

Without further ado, let’s dive in.

ISDN Holdings Ltd

If you have been a reader of the valuebuddies forum, you would be able to find that I have started investing in this company long before this website existed and stretching back to pre-covid. The comparison here though will still be based on when the research was first posted, as that would be when readers of the Squirrel’s Drey would have first seen the discussion on the company. The investment thesis stays intact. Automation would continue to proliferate, especially under the Covid Zero policy in China. There are multiple driving factors that would push for industries to embrace further. As discussed before, domestic robot production has been used as a proxy towards determining trend of automation in China. The latest is as follows, and if it follows the seasonal trend, 2022 does seem an exciting year for ISDN.

Furthermore, the hydropower plants are getting very near to commercialization. In the earlier part of the year, Indonesia banned the export of coal due to low domestic stockpile. There is urgency in increasing the share of renewable energy in their power grid. ISDN has spent many years in the construction of these dams. Although I would much prefer the company to focus on automation, this is the time to harvest the fruits of those years of effort.

Samudera Shipping Line Ltd

The previous post has detailed a full exit from this investment, and it does seem like the exit was premature with the share price rallying to a high of $0.93. The reasons for exit have been discussed earlier and I won’t delve further into it. I will end this part of the discussion with the proxy indicator that has been used by many to gauge the health of freight shipping. And markets are always forward looking.

Source: Drewery

Lake Resources NL

The market capitalization of this company has enjoyed a strong rally in the past 5 months. Lithium prices are at a record. The company has been included into the ASX300. The demo plant is expected to be on site soon. A Memorandum of Understanding has been signed with Hanwa Co for an offtake agreement to supply up to 25,000t of lithium at market rates. Upcoming Definitive Feasibility Study and further exploration of LKE’s remaining Brine projects are all exciting developments to wait for. Again, this is not a producing company and there are considerable risks involved.

YangZiJiang Shipbuilding Holding Ltd

The company has been moving steadily along to spin off its investment unit. The investment arm has gone through a capital injection and the Singapore exchange has granted an “eligibility to list” to YangZiJiang Financial Holding. I still believe that in the long term, the company will evolve into an asset light investment manager and proceeds from spinning off assets would be used to reward shareholders. The completion of the spin off should generate further value for shareholders.

In summary, I still see reasons for continuing to hold ISDN, LKE and YZJ. Still in the midst of another write up that would take a while since I happen to be really busy in the past few months. Hope to get that article completed soon.

Disclaimer: All posts on The Squirrel's Drey are for informational and discussion purposes only. This is not a recommendation to buy or sell securities discussed. Please do your own due diligence before investing.

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