http://paullowinvestmentjourney.blogspot.sg/2016/10/portfolio-update-for-september-2016.html
i divested my entire nam lee pressed metals about two to three months ago, after it hit a high of 40c.
my net net price was about 25c.
my thinking was that
1) dividend wise, it has reached a high of 2.5c in 2016 and it has been paying out 1.5c since 2011. thus i feel that this might not be able to be sustained in the coming year.
2) my overall gain from this counter was about 20% pa for my 2-3 years time frame. if this could be extrapolated theorectically, i would be looking at 46-50c by next year, which i feel is not likely at all.
3) thanks to hopeful analysts who wrote very bullishly about this counter and even had a target price of 60c+, the crowd came in and help push it up beyond 40c.
4) normally my preferred holding period is long term to perhaps forever, but then, presented with such bullish prices well beyond my expectation, it really leaves me with little choice but to sell off my entire stake
Indeed, when the result were announced a couple of days ago, earnings came down. the nav retreated. and naturally, the dividend also came down to 2c, 1c normal and 1c special. As expected, following that announcement, the price took a beating.
2/12 price did recover. however, imo risk is higher as this means yield is just around 5%, a yield which an investor have other choices in bigger companies with greater safety profile.
i divested my entire nam lee pressed metals about two to three months ago, after it hit a high of 40c.
my net net price was about 25c.
my thinking was that
1) dividend wise, it has reached a high of 2.5c in 2016 and it has been paying out 1.5c since 2011. thus i feel that this might not be able to be sustained in the coming year.
2) my overall gain from this counter was about 20% pa for my 2-3 years time frame. if this could be extrapolated theorectically, i would be looking at 46-50c by next year, which i feel is not likely at all.
3) thanks to hopeful analysts who wrote very bullishly about this counter and even had a target price of 60c+, the crowd came in and help push it up beyond 40c.
4) normally my preferred holding period is long term to perhaps forever, but then, presented with such bullish prices well beyond my expectation, it really leaves me with little choice but to sell off my entire stake
Indeed, when the result were announced a couple of days ago, earnings came down. the nav retreated. and naturally, the dividend also came down to 2c, 1c normal and 1c special. As expected, following that announcement, the price took a beating.
2/12 price did recover. however, imo risk is higher as this means yield is just around 5%, a yield which an investor have other choices in bigger companies with greater safety profile.
