Back to the Future #1: First Service Holding
Life is like a box of chocolate... and you may just have it again...
The feeling of Déjà vu.
The whole theory still stand.
This is the company which will be taken out first when the industry consolidate because it is the cheapest and the least “encumbered” by majority shareholders.
Overall, it looks like a good bet again.
Yes, I am going to rehashed a number of my old ideas in my next few posts.
So prepare to go back in time and then possibly into the future.
The story started when some of my subscriber noticed a new position in my portfolio and dropped me an email to ask me about it…
First Service Holding (FSH):
Quickly the story escalated as Evergrande collapsed and the dominos started to fall. Instead of a falling share price, rumours on the market is that FSH is going to be sold…
If life is really like a box of chocolates, I really did not knew what I am buying. I should have eaten my chocolates but instead the box got glued shut and I have a box of worthless chocolate for a while…
Finally, my chocolate box open after much sitting and waiting…. I gladly ate everything and then that’s the end of the story….
But wait… What if the box of chocolate is presented back to you again?
With a reluctance to part with a genuine good company at a good price and a possibility that they can raise cash, FSH majority shareholders had decided to renege on the contract and not sell the company!
The decision either meant
FSH is such a fraud that it cannot be sold (15%)
Shareholder think that it is such a gem that they want to keep it (60%)
unknown unknown (25%)
The odds looks pretty good here.
I am not going to go through all the details here as New Vila Equity Research did a wonderful write up on FSH.
Yes I am holding that box of chocolate again. And hopefully, the wait would be worthwhile.
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