Mike Arnold
Long only, small-cap, tech, growth at reasonable price

Power Assets Holdings: A Low-Growth Business, A High-Growth Business And A Catalyst

Shares of Power Assets Holdings [(OTCPK:HGKGY) (0006.HK)] ("PAH" or "the company") experienced a 20%+ correction since late May despite continued robust business performance in its growing overseas segment and the announcement of a value unlocking catalyst to monetize a portion of its stable, but slow growth Hong Kong business.

In late September, PAH, a 38.78% owned associate of Cheung Kong Holdings (OTCPK:CHEUY), which, in turn, is a 78.16% owned subsidiary of Hutchison Whampoa (OTCPK:HUWHY) run by legendary asset allocator, Li-Ka Shing, indicated it was seeking to carve out between a 50 and 70% interest in its 100% owned Hong Kong Electric ("HKE") unit.

HKE is a staid, old, boring and predictable business, having been...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details