Triple Blows
Its 5 months into 2018, I suffered triple major blows to my
returns this year which made it seem like a year of loss or at best breakeven.
First blow, arbitrage venture in Midas Holdings Limited that
went horribly wrong; it was an experiment to buy Midas in SGX (bought $0.169 in
Jan 18) and sell in HKSE (then trading at around SG$0.60), however the transfer
of shares takes 2months and suddenly on 8 Feb 2018 it was suspended and the
rest is history. Apparently, PRC companies simply have a trait of forging their
accounts, their bank balances and pledging shares for loans without declaring
and finally emptied the company’s coffers and bankrupt it.
The result of this experiment was a loss of $9477. This is
the biggest loss in several years since my naïve days of holding (also another
PRC company) Beauty China of $10K worth to zero after it was delisted.
Second blow, was my recent trade on YZJ Shipbuilding SGD that
horribly dropped 3% from $1.08 to $0.98 on Friday, 25 May 2018. I entered based
on trading and exited at stop loss $0.99 which resulted in a near $2K loss. It
was later realised that HSBC Global Research the previous day on 24 May 2018 downgrading
to reduce with a target price of $0.87, in absence of other news, this could
potentially be the cause of the fall.
Third blow, was my purchase of Q&M Dental for trading
between Friday, 25 May 2018 and Monday, 28 May 2018. It hit my stop loss alert
but due to illiquid volume I failed to take action immediately as I was also
busy with my work. At the end of Monday, it dropped 6.8% from $0.59 to $0.55,
my cost was about $0.585 as I bought since Friday, 25 May 18 for trading. In
the end, I sold off at $0.545 during the opening, hopefully to close this
painful chapter behind and never have it again.
Because of the 3 major blows, my returns fell to -
Q2
|
-$9,623.51
|
|
Q2%
|
-6.42%
|
|
Q2*
|
-$146.51
|
* (exclude Midas write off)
|
Q2%
|
-0.10%
|
|
Q1
|
$2,261.76
|
|
Q1%
|
1.51%
|
|
Till Date
|
-$7,361.75
|
|
-4.91%
|
No comments:
Post a Comment