Cosco Corp - the great plunge

This is what I read from Kim Eng news today.

Its 51%-owned Cosco Shipyard Group (CSG) unit has secured about US$292.3m worth of offshore and tanker building deals.
The second contract secured is to build two 59,000 dwt shuttle tankers for a Danish owner valued at 101.2m euros ($220m).
The group also announced yesterday that it will not be proceeding with a US$202m project to build a GM5000 semi-submersible rig hull for Norwegian owner Red Flag AS as announced last May.

Although the new contract secured is more than enough to cover for the lost contract, however, that's not the market think obviously.

Cosco down 15% to 2.850. 4 of the Cosco call warrant also on the top volume list losing 30+%.

Cosco has many supporters in the market, both fund managers and retail investor. Especially many retail investors have been eyeing for a stake for a long time. However, time has changed, the once easy to go up stock upon any good news is not doing that anymore. Instead, the bad news have been magnifying and follow by relentless sell down.

I think one has to think carefully and re access own situation before taking the plunge. Key questions to ask

1. What is my holding period and exit strategy?
2. Is the valuation attractive vs the prospective cost increase and slow order?