Finally sold my China Minzhong today, after holding on to it for almost 8 months.
Yes, I am one of the unlucky few who bought the shares before the big fall in May 2011. And yes, I was (maybe) one of the few who held onto the shares and not cut loss when I should have. Well, that was because I was overseas during that period of time. I only remembered checking it one day (after a couple of days not being able to login), and saw that it had plummeted to a penny stock (about $0.60) from its normal price of S$1+. Right now, I am still not sure what had happened.
The stock had rallied the past few weeks, and I was hoping that it will go back to about $1. However, given the red signals of the market this week, I decided to get rid of this stock once and for all. On hindsight, I should have averaged down when the stock was $0.60. However, according to the books I have read, this is a big no-no. Who knows if the price will keep getting lower and lower... like Cosco?
On paper, the stock looks great... the company is profitable, low PE and PB ratio, reports saying that there is worldwide food shortage, Temasek backed...it looked like a safe buy for me. Unfortunately, that was not the case. I have since vowed not to buy any more S-chips. Too risky!
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