Selling Longcheer was a good decision

Longcheer is a handset design company which has customer in China, India and other emerging market.

I bought into the company share after being highlighted by Lim & Tan. The company is paying good dividend, having sufficient good return on equity, low valuation and business is doing well. Later on, DBS Vickers also recommended the stock. Although it is a tech stock I will usually avoid, I bought some share hoping for re-rating.

Things didn't pan out that well. After a good quarter, major share holder start selling out which makes me uncomfortable. The earning visibility is poor and Lim & Tan suggest that the earning might disappoint. Therefore, I took the decision to quickly cut it. It is drifting down slowly.