My recent sell decision

Market volatility has returned, starting with middle east and africa unrest, follow by last week Japan earth quake. My portfolio is back in red again. I sold away some of the counters in order to make the portfolio more concentrated. I also kind of realised that small cap, although offer potential great return, also comes with great amount of risk.

Longcheer
The buy decision originated with a broker call and the sell decision also come with that. When I bought the stock, it is kind of undervalued where company has been buying back share, giving out dividend and emerging market business is doing well. It briefly go up for a short period and come down recently because of the disappointing result. I managed a small loss. I am glad that I took that loss. Because after the result release, it fell quite substantially and I think the business will remain weak for sometime more. The first sign of danger emerged when major shareholder start to trim holding.

Oceanus
It is a classical case of didn't take my profit at the right time and end up with loss. It went up to 0.40 plus when the TDR issue was hot, I should have sold it to lock in the profit. Because the restaurant business is tough by nature and their abalone need time to mature. Just look at the restaurant listed on SGX, how many of them offer good growth? I realised the inherent short coming with a restaurant. During the off peak hour, the resources are idling, during the peak hour the capacity is maxed out. No matter how long the weekend is, when your restaurant is full, you can't earn any extra. The core business and restaurant business need sometime to bring good profit, I am better off take my money to other stock.

Anwell Tech
It was mentioned in my earlier post. Surprisingly the solar business competition is getting more and more crowded, money is no where to be seen. Safety first, just sell until they can bring in good cashflow.

Genting SP
The next day after they announced the Q4 result, I sold it at 10% loss. My hope for better than expected earning did not materialise. Looking at the currrent climate, there is chance for it to weaken and could be bought back at lower price. However, the market player seems to agree that it was a temporary set back only and the casino is still going to do well in Singapore. Let's look at what happen for the rest of the year.

It was tough call to where market is going. However, I feel safer by selling away those businesses that are going to suffer in the short term. I am looking to deploy the reclaimed capital and fresh capital if market weaken considerably. My target for this year is to buy some cheap stock for long run, take some good profit when chance come and wait patiently.

I think my investment style has gradually evolved, hopefully for the better. Some will be under my long term portfolio and to be bought on cheap. For those fast moving stock, I will take some meaningful profit, as not to suffer the not taking profit emotion. I will mix some small, mid cap with big cap, as to reduce the overall portfolio volatility. I will buy those which offer good dividend yield as to boost the recurring income. While holding the stock for long term gain, the only comfort thing is to receive dividend.