Sold my holding of Best World International

Today I sold all my holding of Best World International @0.26 after about 3 months holding due to my short term financial commitment as well as no clear sign of future capital gain on this counter.

Overall base on my entry price 0.285 and exit price 0.26 after minus transaction cost I have encountered about 12.4% realised lost.

I think I am still not good enough to control my emotion and am too eager to entry into the market. As Mr. Buffet always mentioned we should limit our trades and only focus on high chances of success investment (margin of safety + fundamental strong financial results + wonderful management) then watch it carefully and hold it for long term.

My mistakes on China Gaoxian

China Gaoxian plunged 24% (from 0.25 to 0.19) on a whopping 140m shares changed hand on March 21. In the late evening the company requested for a trading halt, which was called shortly after the company received a request from the SGX about the unusual trading activity. 

From the sharp price decline the natural assumption is that there must be some issues which could be price sensitive that some participants in the market know but which has not been made public to all investors. 

In summary I have several trading mistakes on this counter:

(1)   Entered at wrong timing: I entered on 26^th Jan @0.34 after the stock has plunged from 0.41 to 0.335 (abt 22% drop) within one day and I thought that was a good opportunity to get a bargain.
(2)   Not follow my cut lost rule: when the stock price drop to 0.27 on 16^th Feb which already met my 20% cut lost point but I am still hoping this counter will perform well after the full year results to be released by the end of Feb.

(3)   Buy additional lots when stock is in down trend: I doubled my holding during Japan earth quake & radiation crisis on 17^th Mar @0.225 the averaged down my entry price to 0.285.

(4)   Not exit the market when lost is minimized: on 18^th Mar there is a chance I can sell this counter @0.26 and minimize my total lost to less than 10%. But I am still hoping it will go up further.

(5)   Not cut lost immediately during market panic: on 21^st Mar afternoon when the stock declined to 0.22 (abt 23% lost) I am not cut lost immediately until the stock price finally went down to 0.19 (abt 33% lost).

Trades done on 17.03.2011

I made below trades today:

5 lots of China Gaoxian @0.225
6 lots of China Taisan @0.145
12 lots of Bio-Treat @0.04

Now my averaged entry price for China Gaoxian was 0.285, for China Taisan was 0.165.

For Bio-Treat since even only 0.5 cent movement will be resulted abt 12% profit and I am willing to speculate on this counter.

China TaiSan 2010 financial result

Finally, China TaiSan result was released on 28th Feb.

I summarized my key findings here:

(1)   Revenue up 63.0% yoy

(2)   Net profit up 136.3% yoy

(3)   Gross Profit Margin 26.4% and Net Profit Margin 18.6%

(4)   ROE 20.5%

(5)   Cash or cash equivalents abt 12.77 cents

(6)   NAV increased 109.5% to 21.63 cents

(7)   Earning per share 4.95 cents – base on entry price 18 cents P/E ratio 3.64

(8)   Dividend pay out 0.67 cents per share – base on entry price 18 cents 3.7% dividend yield.