I guess I will not be answering your question (directly) but hopefully it might serve to help you in the future.
I invest in value stocks just by pure book value, other wise known as balance sheet investing.
when a stock sold down, I usually check sgx announcement for anything new. If the quarter results is "good" but the stock still get price down, be sure to inspect the entire document for things you might miss.
5% is consider small. I had 40% paper loss on a stock before, and one that is priced down 20% (Mermaid Maritime) and 15% (Innotek). On both occasions, I have the courage to average down. If you like the business at a dollar, you will love it at 80 cents. The lower the price, the lower the risk. For Innotek, I had it once whereby it fell 8% right after I average down. Speaking of suay...
You have to be honest with why you pick a stock. If the reason why you bought a stock is no longer valid, how the market priced it should have no bearing on how you act. Let me share with you 3 mistakes I had. The first two were because I am pure lazy.
Noble was bought and sold at 20% loss, and Starhub was sold at a slight loss. The fact that both stocks rebounded beyond my buy price after I sold them has no bearing on me. Noble really do have questionable asset values that possibly tilt it to negative equity. Starhub really has problems paying dividend addicts off its free cash flow. So I sold, no regrets at all (certainly regret that I was lazy).
The recent case was QAF. I thought it was cheap-- until I take a closer look at the earnings power of meat production company, which is set to be spin off, vs the price of the QAF itself... I think there isn't much margin. So I sold. QAF can fly to 1.4 for all I care.
So you need to think if the cash injection is a trade or an investment. For me, if there is a value discrepancy, it is an investment. If, for instance, I buy SingTel because I thought that it would give off special dividends for the divestment of Netlink, then that is a trade, because it is a) very unlikely just by doing your homework b) depending on human behaviour, i.e. depending on the management to act in your favour.
That is trading for damn sure.
In short, value investing make some selling decisions very easy. Not sure if this helps.
Reply to @duckie : i still remember the first time i invest, i don't even see profit until over a year.
even now, i see a lot of people who profit from buying sunningdale, chip eng seng, china sunsine, aem while doing next to no research, coat-tailing off popular sentiments...
whereas i have to content with waiting for half to a year to get even 10-20 percent sometimes.
it is very easy to lose your way but i am sticking to my guns. hope you stick to yours.
I have 4 out of 5 but my entry price was lower, so my views might be bias.
Food Empire - good results thus far this year. Waiting for its Q3 results to confirm its growth. Holding and not adding.
Valuetronics - very strong results this year. Believe that momentum will carry on. Hold n not adding.
IFAST - good results this year a compared a challenging 2016. After reading through its ARs, think it has potential for further growth. Added more at 0.975 last week. MIGHT add a bit more.
UMS - good results. Awaiting Q3 results to see impact of term of new contract and how the shift to Penang might mitigate the supposed lower margin. MIGHT add after bonus issue or if price goes below $1 before bonus.
Reply to @mj0101 : Yup. It was mentioned somewhere in the AR that 2017 and 2018, its china op will be at a loss. Hope that they can keep it to these 2 years. I like it that they have recognized offshore investment as their competitive advantage in China.
Maybe you should look at the 52 Wks High and Low to decide where you stand
BlackGold Natural Resources Limited
52 wks high 0.195
52 wks low 0.027
Now 0.118
BVS 0.019
Price to Book 6.11
Food Empire Holdings Limited
52 wks high 0.78
52 wks low 0.28
Now 0.64
BVS 0.421
Price to Book 1.52
iFAST Corporation Ltd.
52 wks high 1.17
52 wks low 0.59
Now 0.965
BVS 0.301
Price to Book 3.21
UMS Holdings Limited
52 wks high 1.27
52 wks low 0.60
Now 1.01
BVS 0.463
Price to Book 2.18
Valuetronics Holdings Limited
52 wks high 1.005
52 wks low 0.49
Now 0.95
BVS 0.409
Price to Book 2.32
I guess I will not be answering your question (directly) but hopefully it might serve to help you in the future.
I invest in value stocks just by pure book value, other wise known as balance sheet investing.
when a stock sold down, I usually check sgx announcement for anything new. If the quarter results is "good" but the stock still get price down, be sure to inspect the entire document for things you might miss.
5% is consider small. I had 40% paper loss on a stock before, and one that is priced down 20% (Mermaid Maritime) and 15% (Innotek). On both occasions, I have the courage to average down. If you like the business at a dollar, you will love it at 80 cents. The lower the price, the lower the risk. For Innotek, I had it once whereby it fell 8% right after I average down. Speaking of suay...
You have to be honest with why you pick a stock. If the reason why you bought a stock is no longer valid, how the market priced it should have no bearing on how you act. Let me share with you 3 mistakes I had. The first two were because I am pure lazy.
Noble was bought and sold at 20% loss, and Starhub was sold at a slight loss. The fact that both stocks rebounded beyond my buy price after I sold them has no bearing on me. Noble really do have questionable asset values that possibly tilt it to negative equity. Starhub really has problems paying dividend addicts off its free cash flow. So I sold, no regrets at all (certainly regret that I was lazy).
The recent case was QAF. I thought it was cheap-- until I take a closer look at the earnings power of meat production company, which is set to be spin off, vs the price of the QAF itself... I think there isn't much margin. So I sold. QAF can fly to 1.4 for all I care.
So you need to think if the cash injection is a trade or an investment. For me, if there is a value discrepancy, it is an investment. If, for instance, I buy SingTel because I thought that it would give off special dividends for the divestment of Netlink, then that is a trade, because it is a) very unlikely just by doing your homework b) depending on human behaviour, i.e. depending on the management to act in your favour.
That is trading for damn sure.
In short, value investing make some selling decisions very easy. Not sure if this helps.
Reply to @duckie : i still remember the first time i invest, i don't even see profit until over a year.
even now, i see a lot of people who profit from buying sunningdale, chip eng seng, china sunsine, aem while doing next to no research, coat-tailing off popular sentiments...
whereas i have to content with waiting for half to a year to get even 10-20 percent sometimes.
it is very easy to lose your way but i am sticking to my guns. hope you stick to yours.
I have 4 out of 5 but my entry price was lower, so my views might be bias.
Food Empire - good results thus far this year. Waiting for its Q3 results to confirm its growth. Holding and not adding.
Valuetronics - very strong results this year. Believe that momentum will carry on. Hold n not adding.
IFAST - good results this year a compared a challenging 2016. After reading through its ARs, think it has potential for further growth. Added more at 0.975 last week. MIGHT add a bit more.
UMS - good results. Awaiting Q3 results to see impact of term of new contract and how the shift to Penang might mitigate the supposed lower margin. MIGHT add after bonus issue or if price goes below $1 before bonus.
Reply to @mj0101 : Yup. It was mentioned somewhere in the AR that 2017 and 2018, its china op will be at a loss. Hope that they can keep it to these 2 years. I like it that they have recognized offshore investment as their competitive advantage in China.
Hoping for the best.
Maybe you should look at the 52 Wks High and Low to decide where you stand
BlackGold Natural Resources Limited
52 wks high 0.195
52 wks low 0.027
Now 0.118
BVS 0.019
Price to Book 6.11
Food Empire Holdings Limited
52 wks high 0.78
52 wks low 0.28
Now 0.64
BVS 0.421
Price to Book 1.52
iFAST Corporation Ltd.
52 wks high 1.17
52 wks low 0.59
Now 0.965
BVS 0.301
Price to Book 3.21
UMS Holdings Limited
52 wks high 1.27
52 wks low 0.60
Now 1.01
BVS 0.463
Price to Book 2.18
Valuetronics Holdings Limited
52 wks high 1.005
52 wks low 0.49
Now 0.95
BVS 0.409
Price to Book 2.32