Sale of Lian Beng Group

On 04/05/16, I sold off my stake in Lian Beng Group at $0.475, which gave me a loss of 20.55% after accounting for dividends. One of the main reasons why I sold off my stake despite the continuous share buybacks over the past year was because I had been feeling uneasy over the resignation of two of its independent directors since July 2015. The both of them had resigned over differences regarding bonuses, which they felt was a tad too high for the key employees. A resignation of two long-standing independent directors over pay matters seems like a red flag to me.

The second reason why I sold off Lian Beng was because I wanted to build up my cash cushion as I found it a little too low for my comfort. Looking at my portfolio, I felt most uncomfortable holding onto Lian Beng and Global Invacom, thus I decided to cut my losses for Lian Beng when the price rallied alittle. Looking bad, I have made a couple of bad calls in the past year, and I hope to improve on my performance moving forward.