It's hard enough for conglomerates to get their due, but
when the assets in question aren't even that exciting, it makes it even
harder to make money. That's been my issue with CK Hutchison (OTCPK:CKHUY)
for a while now, as I just can't muster much enthusiasm for a so-so
collection of assets in telecom, retail, infrastructure, and energy
spread across the world. I wasn't all that fond of the value proposition
back in January, and the shares have fallen about 15% since then -
lagging not only the Hang Seng but also other conglomerates like Swire Pacific (OTCPK:SWRAY) and CITIC Ltd. (OTCPK:CTPCY).
Unfortunately,
there's nothing in management's recent commentary that suggests they
see much need for change. CK Hutchison isn't in the business of capital
recycling and there don't seem to be many moves afoot to significantly
improve any of the constituent parts of the business. I do believe the
shares look relatively undervalued now, but it takes more than just a
low valuation to make stocks work and my confidence level in CK
Hutchison management is not high right now.
Read the full article:
Lackluster Assets And No Real Dynamism Continue To Weigh On CK Hutchison Holdings
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