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Dayang: When to sell?


Koon Yew Yin 12 Dec 2019

This is one of the most if not the most important lesson in making money. As I have often said, no stock can continuously go up for whatever reason and after some time it will change its trend and drop. Based on this fact, short term traders buy and sell to make money. 

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Unfortunately, many smart investors sold Dayang and did not buy back because they could not believe that it can continuously shooting up higher and higher. It has gone up from 50 sen to close at Rm 2.36 yesterday, and increase of 472% within 1 year. Even the famous fund manager and expert chartist sold at Rm 1.50 and advise all his followers to sell. 

All investors must ask these 2 questions:

1 will it go up higher?

2 Should I buy back at higher price than I sold?

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I have been searching in the last few months to find another counter to diversify to spread the risk in vain, I cannot find another one with similar profit growth prospect as Dayang. As long as there is oil, Petronas will continue to pump oil because the company has already paid for the cost of the oil rigs and Dayangwill continue to have more and more maintenance contracts to make more profit.  

There is an English saying “the test of the pudding is in the eating”. You may like to see my purchase note from Hong Leong Investment bank. Yesterday I bought 628,700 Dayang shares at Rm 2.34 per share and the total cost is Rm 1,476,403.81.     

My advice to those who have sold their holdings earlier is to eat the humble pie and buy back even at higher prices than the price they sold because it will continue to go up higher and higher as long as there is oil for Petronas to pump and Dayang will get more and more maintenance contracts.

My advice to those chart teachers and expert chartists is not to lose faith in charts. If they have sold Dayang, should buy back.

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