Updates on Portfolio Realized and Unrealized Profit

My portfolio continued to fall and has entered into a region with unrealized loss (excluding dividends). This can be attributed mainly to the huge drop in the price of 800 Super after they released their 4th quarter report. The company had sank into the red for the quarter and the announced dividend had decreased significantly as compared to the previous year. The quarter report was released during the lunch break, and immediately after the market reopens after lunch, investors start dumping the stock like there is no tomorrow. In 4 days time, the stock has fallen by as much as 40% from $1.00 to $0.60.

On day 5, Phillip Securities Research (Singapore) released an analyst report with the title "Oversold!" and recommended a 'Buy'. Immediately, investors start rushing back into the stock wanting to get into the game for a bargain. The stock rebounded sharply in a day. On 10 September 2018, the management filed to SGX to declared that the management had bought back around $1 million worth of shares at the average price of $0.80. It was puzzling to me that the major shareholder and directors did not buy in at the bottom when it was around 60 cents but bought back only after the share has rebounded instead. Either they were really bad at timing the market or they were trying to send a message to the retail investor by setting a psychological support price at $0.80 to prevent the stock from dropping further.

After the whole event, I realized that I did not have a good exit strategy if something really bad happens to the market. Coincidentally, I came across a blogger who is reading a book and decided to take a deeper look at what the book is about. The book is Trade Your Way to Financial Freedom by Van K. Tharp. In the first few chapters, the author has strongly emphasized the importance of exit, rather than entry for both trader and investor. I am still in the midst of reading, and hopefully at the end of it, I will be able to pickup some good exit strategies from the book. It was a depressing start for the week but the market finally got a breather yesterday. For those long-term investor who are still holding on to their portfolio during volatile times like me, I hope this slogan will be useful in your investing journey.