Saturday, 8 February 2014

Counter debrief: SMRT & Suntec Reit

Happy Lunar New Year to all, in this post, I will be sharing 2 of my favourite counters.

The first one is one which most of us would have and owned at some point of time. I owned this stock since IPO and along the way, I add some as well. Most of us owned the stock for these reasons previously:

  1. defensive stock with good dividend yield
  2. well run company previously with exposure and revenue from rental shops and advertisements
  3. part of the growing story to cater for the 6 million population
In Jan 2013, I sold the stock after news of the CEO Saw had left(about a year, ok, I gave chance to new management) and problems start to surface. In fact, if you looked at the chart below, based on TA, I should have sold even before the first blue bubble and not later. I was like most of you, hesitating and convincing myself(ignoring the TA indicators), that I am in for long term and even if the stock price is down, I am still getting dividends. Fortunately, I sold eventually, and now looking back, it was a right decision because now I have the capital from the sale and the choice of buying at even at a lower price if I want.

This post again to remind myself dont gave yourself reasons against what the chart is telling you.
The next one was Suntec Reit which again, gotten from IPO and then added some along the way. Way before Lehmen crisis, it hit all time high(i think was $2), at that time, the HK boys(major shareholder) were selling the stocks too. Being a long term investor(i thought), i hold on for the dividends, but the share corrected and went to below $1. And in 2013, it managed to repeat the same cycle again, and this time, I followed what the chart told me and took profit as shown in the blue bubble. 
This tells us that there is cycle to any business and investment including shares, if I had make use of the cycle, I would have made not once but twice.


Anonymous said...

Ha! Ha!
If only the charts can tell consistently. i would prefer to be a trend trader.

Oldman said...

I had mentioned before that chart only gives you the probability. How do you define trend?