01 November 2013

Another Unexpected Profits from Stock Market Investment: SCICOM

Stock market contains abundant unexpected events or things. In order to survive in stock market investment, we need to expect the unexpected. In fact, if things are happen as expected by you or somebody else, then you are probably just getting started in this ever-ending journey.

 

Unexpected Market should be expected

Logically, stock market must be unexpected. This is because stock market is just a media that gathers the action of people. Life is unexpected, so the people. People may need money due to unexpected events, and therefore need to sell out their shares to other. People may need money for better investment that no one else knows yet. People may simply want to realise their profits. In other words, unless you are very lucky, the chances you are right for guessing the moving of market price is 33% - up, down or unchanged, in average.

An Unexpected Profits - SCICOM

Recently, I have realised an unexpected profits from my portfolio - SCICOM. Firstly, I must admit that SCICOM is a good company with steady income plus no bad dividend payout. These are the two main reasons I invested in SCICOM. However, personally, SCICOM was almost valued when I bought it at around RM0.40, with PE around 10 and dividend around 7.5% (3sen). Despite the fact that SCICOM have grown marginally after one year and its market price was appreciated for around 20%, I just kept it. This was mainly because I was still unable to find another good deal to reduce my cash ratio.

 

Patience gets paid

My patience has received bigger rewards. My SCICOM unexpectedly appreciated more than 70% from the price that I considered as valued price. Then, you should know what I was going to do immediately when I saw the price was extremely attractive for sell.

 

Portfolio's Suggestion versus Human Emotion

Will SCICOM continue to grow? Yes, I think so. Then, why I sold it? This is because my decision is mainly based on my homework, that is, cheap buy, expensive sell. When SCICOM was around 0.50, I already wanted to sell it. Somehow, my portfolio disagreed with my thought. My portfolio indicated that current market was in bull trend, and I should increase my valuation to suit the trend. Luckily, I followed the suggestion from my portfolio instead of followed my emotion. Nonetheless, it does not mean that the suggestion from my portfolio is always right. It just means that the suggestion from my portfolio is much consistent without the effect of human emotion.
 
Lastly, I must once again highlight that I am not trying to predict or estimate the market price movement of SCICOM or any other shares. This is not my business. Moreover, I do not need that capability to survive in stock market investment. That's all for today. More fascinating articles and sharing will be updated weekly in Xaivier Blog. So, you are welcome to subscribe our feed to receive our latest sharings timely.

Written by: Xaivier Chia

P/S: The above sharing is solely based on personal insight and information that believed to be reliable. Your valuable feedback are very welcome.


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3 comments:

choo1975 said...

So you still keep your Scicom share. I believe now at 66cts is gd time to buy with PEx9

Xaivier Chia said...

Hi Choo,

I have cleared out all my Scicom shares at 0.76. Scicom was one of my favourite companies when it was only 0.40...

Scicom has a good prospect from its future development. Latest financial performance of Scicom is also no bad.

But somehow, I still do not see enough safety of margin for me to re-invest it in this price. Moreover, in this moment, my portfolio does not allow me to do new investment. Honestly, if I have "extra cash" in my portfolio, I may consider to invest some in Scicom again for its future development.

All the best.

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