August 4, 2021

11 thoughts on “Recent Actions – A Gamble with Swissco and The Belief in Keppel DC Reit?

  1. Hi EH,

    Not quite.

    There will always be competition in business.
    I do not believe that you can identify a trend and then say this company sure successful bcos it is in this industry. Management, track records, financial figures, understanding of the business, focus in the core.. etc all matters.

    Google, Alibaba, local telco, investment funds coming into the market fiercely etc.

    Kep DC not just in Sg already now in AU, NL MY, Ger, hence market size is sizeable.

    Barrier of entry is not as low compared to normal industrial reit if u go deeper. DC Requires high level of reliability, many backups in power, battery, generators, storage, raised floor, special cooling, network comm connections etc

    Need high level of experty n reputation for reliability which Keppel so far exhibits.

    Of course there r many risks… tech advancement making servers smaller requiring lesser space, Equinix (largest DC player) very aggressive, new players entering market etc…

  2. Hi Rolf,

    Prudent move to switch from Telcos to Data centres. I also foresee a future where people are gorging more and more data.

    Singapore seems to be the premium choice for data centres in this region due to our political stability, lack of natural disasters and a supply of skilled workforce.

    1. Hi DK,

      Yes. The lack of natural disaster is a good one!

      We must not forget that technology is like tide while can raise all boats can also sink them.

  3. IMHO, my preference is Ezion over Swissco. but both coy are somewhat related. anyhow, thats just me .. i think swissco might be subjected to potential acquisition.

    if such scenario happens, then it will be bonus for you.

    1. Hi FC,

      Thanks for ur humble opinion. Tan Kim Seng use to the the boss of Ezion boss Chew when the latter was working for the former in KS Energy. KS holdings owned substantial Ezion.

      Ezion had more assets on liftboats and also owned Ausgroup which are the main crucial differences to Swissco. I also wrote several articles about Ezion/Liftboats in my blog.

      Oh…. Swissco subjected to acquisition? That sounds interesting.

  4. Swissco price has been dropping like stone in past few months.
    Is it wise to average down now ?

    Thank you

    1. Hi, frankly it's not wise for me to advise u because I do not know ur position n how much SWISSCO u owned as a percentage of ur portfolio.

      I know mine well n hence I can better know what I m gg to do next for myself.

      It was a gamble I took in Apr this year. And the gamble seems to be a wrong one judging from today's share price!

      So I acknowledged. If I average down again, it is going to be another gamble…

      So when it is gambling, it's all 50-50 and luck plays more part than the rest.

      I stop gambling recently, but does not mean I will stop entirely in future. As long as we know if it's going to be a big or small gamble and even if I lose… "i m prepared to lose all since I already mentioned it's a gamble!"

      Hope this reply helps.

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