Recently I have increased my holdings of ComfortDelgro. I bought 2,400 shares at 2.03 SGD to average down my cost per share.
The reason of this is I found that it might be hard to purchase it below 2 SGD, and current price to book value ratio is only slightly above 1. My plan of average down is as follows: I will add 5,000 SGD if the price drops another 30%. I have no idea where the price is going but I think the fundamental should be stable for years. Therefore I will slowly average down.
I sold 19,400 shares of Keong Hong at 0.57 few days ago. I sold it is not due to any fundamental changes. I planned to use the proceeds and all the cash in my trading account to apply for RE&S IPO. Sad thing is I got nothing and wasted 2 dollars and the price jump more than 60% from IPO price! Now I need to see when to get back to Keong Hong again. Currently I am still holding 19,000 shares of Keong Hong.
Recently PEC and Straits Trading are not doing good, and I am planning to average down PEC. Sad thing is I cannot average down Straits Trading as it already took a large position in my portfolio. I shouldn't buy too much of any shares at any price in the future so I will be more flexible to control my portfolio.
If you can read chinese I want to recommend you to check out this blog.
https://parisvalueinvesting.blogspot.it/
It is written by a HK blogger who strongly believe that value investing is the best way to make money from the market. I found that many of his articles are interesting!
Thanks for reading! Please DYODD as market is always hard to predict. That's why I have a progressing average down plan (:
Hi. Is it good move to average down as the market is unpredictable and more so to counter like CDG? I am heavily vested at much higher cost.
ReplyDeleteHi,
DeleteI am not sure how diverse your portfolio is.. Currently market is quite crazy about bank stocks and now banks are trading at a premium compare with their book value. As a comparison CDG is trading just above its book value and if current dividend yield is sustainable it is 5% yield per annual. Please take note that I average my CDG down because it is just few percent of my total portfolio, and I actually set a progressive average down plan, as I have no idea where the share price is heading to too. What I believed is market underestimated the profitability of CDG, and it should generate better than expected return in future. That is the main reason I average it down. I won't recommend invest heavily on any counter, as the market is ALWAYS unpredictable. I am quite regret that I bought too much Straits Trading so I couldn't average it down effectively when the price drops. DYODD ((: