Cut loss on Stratech, TPV and ChinaAnimal Healthcare

I finally sold off three of the four stocks I said I would be selling. Stratech has been in the red for a long time. This was made worse by me subscribing to the excess rights which are not accounted for her. My initial investment of SGD 1,000 halved with no dividends in between.

TPV Technology to acquires Philips' TV Biz in Europe and S America

TPV Technology has announced that it will acquire the TV business of Philips in Europe and certain South America countries. The announcement is fairly completed as it encompasses the establishment of a joint venture company, of which TPV will acquire a 70% share. The price of TPV's stake will be announced later, but will be 4 time the Earning before interest and tax for 2012. Consequently, TPV will also be required to pay loyalty for using Philips' brands. Overall, the move is congruent with TPV's existing business model as well as Philips' strategy of using contract manufacturers to produce its products.

The full announcement is here.

TPV Technology: Some Risks Involved

I realised that my exposure to stocks in the tech sector and China is quite high - China Animal Healthcare, GMG Global, Action Asia and TPV Technology. Action Asia does something more downstream than TPV Technology.

With regards to TPV Technology, there is a mandatory offer of HK$5.20 which has just become unconditional. I might make a boo-boo on this one, but having read the first circular (thoroughly), I believe that following the proposed takeover by China Electronics of shares in the company held by Philips, TPV Technology will remain listed.

I think it is great to have a significant shareholder aboard in the very commoditised industry of making flat panel television and pc monitors. But at the same time scary that one of companies I am holding, is being bought over (in this case the stake is enlarged) by a main land firm. There is nothing wrong with that, just that it makes me feel very exposed to China at the moment.

This led me to think about the principles of diversification. Can there really be a way where we can spread our basket of stocks? Like I have already mentioned in the first paragraph, while some stocks are in different sector, they are all exposed to the same geography. Hence when the China growth story expires, the portfolio might suffer more due to concentration?

Will post portfolio screenshots much later at night.