As you know, Dayang has been investors’ favourite stock and most reasonably good investors would have some Dayang in their portfolios. That is why so many people asked me whether they should just keep or sell or buy some more.
I just came back after holidaying in UK for 14 days. While on holiday, I just wanted to feel free and forget about the stock market. But I was surprised to see Dayang dropped 9 sen per share yesterday.
To be honest, I also asked myself the same question.
I will not buy:
The price chart shows the price is on down trend. As I said before, never buy any stock when it is dropping because the price will mostly continue to drop. Always buy up trending stock because the price is most likely to go up higher the next day.
I have sold some to avoid margin call:
I made this decision based on the price trend, my margin position and not based on the basic good fundamentals. I strongly believe Dayang will outperform many other stocks as soon as the US-China trade war is settled amicably.
To keep or not:
If you are a serious long-term investor and you did not buy Dayang using margin loan, you should just keep your holding and do nothing because the price can rebound any time soon.
But if you bought a lot more Dayang with margin loan, just like me, you should sell some to avoid margin call. If your average purchase price is below the current price, you should feel happy.
As you know, I started promoting Dayang as soon as I saw its last EPS of 10.13 sen about 2.5 months ago when the share price was about 60-80 sen per share. Many of my followers would have bought Dayang at prices below the current price.
Of course, if your average purchase price is higher than the current price, you will feel depressed to sell and accept some losses. Don’t worry too much because just based on the fact that you have Dayang, you are a clever investor. I believe you will quite easily make back some profit as soon as the US-China trade wall is settled amicably.
Due to the uncertainty of the US-China trade war, almost all the stock markets around the world are depressed.
I have been investing in the stock market for more than 50 years and during this long period, I have seen several bull markets and also several market crashes. The current market is just floating up and down. It is most unlikely the market will crash.
I am looking at the stock market on every working day. I am 86.5 years old. Although I can afford to retire, why should I retire when I can get so much of excitement out of the stock market every day.