On the 28/12/17, I sold off my shares in InnoTek Ltd at a price of $0.375, giving me a gain of 9.23%. I had bought into InnoTek earlier at $0.37 and added further to my stake at $0.28 when the market reacted negatively to a bad quarter. It eventually recovered in the last quarter, but as I wanted to concentrate my portfolio, I sold because I realised that InnoTek’s business was one of those which I had the least knowledge of.
On the same day, I also sold off my stake in Bund Center at $0.745, netting me a loss of 7.83% after taking into account dividends. Bund Center is a typical value stock, but it requires a catalyst before the market can recognise its value. This will nevertheless, remain in my watchlist.
On 29/12/17, I sold off my shares in Tai Sin at $0.405, netting me a small gain of 4.11%, dividends included. Tai Sin is a stable stock which gives attractive dividends yearly. However, I do not see it growing as fast as I first imagined it would, and thus upside might be limited. I decided to sell it as I believe that there are more attractive stocks out there.
Similarly, I sold off all my stake in Addvalue Tech on the same day at $0.041, netting me a loss of -18.09%. Addvalue Tech was a stock I thought might be the next AEM as it was innovating and creating a new product which could benefit the satellite industry. However, the one thing that was different was that the momentum of sales orders were slow and small and the company was not profitable to begin with. It exists more like a startup where funds are being utilised to bring a product to market. Time is needed before its efforts might pay off. I sold because I feel I did not possess the aptitude yet to invest in such a business.
As mentioned earlier, one of my aims for 2018 would be to build more confidence in concentrating my picks, thus I decided to sell my non-core positions and plough the funds back into my better ideas. Let’s see how 2018 works out and I’m definitely looking forward to the lessons in store for me.
As news about GLP’s buyout continued to surface and finally seemed to have reached an agreement, I realised that I did not blog about the sale of my shares earlier. On 19/5/17, I sold off my shares at a price of $2.91, giving me a gain of ~31% based on my earlier purchase price of $2.20. I sold my shares as I felt there was still much uncertainty about the buyout price, and the risk-reward ratio was getting less attractive with the surge in its share price. Nevertheless, although I feel it is indeed a strong company to hold for the long term, this buyout offer did give me a good return and I am grateful for that. On hindsight, I should have waited (the final offer price was $3.38, not inclusive of dividends!), but we always have to make the best decision we can at that point of time. Just like in a game of poker. 😉 On 15/7/17, I continued to add to my investment in ISEC Healthcare at $0.33, as I feel it is still undervalued as compared to the industry. I had wanted to add more at $0.315 but was greedy and decided to queue at $0.31 instead. Unfortunately, my bid did not get through. At $0.33, its absolute PE is still high, but I am rather optimistic about this. Let’s visit this space again in time to come.
On 21/7/17, I bought into Addvalue Tech at a price of $0.049. I feel the risk reward ratio is attractive to me at the current price, and the recent entry into the Thai market for its iFleetONE products is good progress. Catalysts remain the sale of its subsidiary Addvalue Communications, contract wins for its iFleetONE product and commercialisation of its Inter-Satellite Data Relay System. Nevertheless, the firm has been loss making for the last few years, and it might take some time before the numbers are back in the black again. This is a speculative position, and I will consider selling if losses continue and their business divisions do not show signs of growth. As this is still not my typical kind of investment, my stake is very small. Position sizing is very important in portfolio management.
Disclaimer: The author owns shares in the abovementioned company. The ideas expressed in this blog should not be construed as an enticement to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.