Friday, September 26, 2014

Super Group (S10) - Why I Advised One Of My Reader To Wait And See

Super Group
Sometime back, I blogged about my long position on Super Group (S10) [click here to view]. For the past 2 months, the counter is experiencing a steady downward trend. Two days ago, one of my reader posted a comment on my post and asking for my insights about this counter (later on I understand that he is thinking about adding more Super Group shares since the share price is at the "low" now. I use low with quotation marks as it is really subjective).
 
My response to him/her is that since the share is still in the midst of downward trend, I will not add any position at the moment. The idea is simple, avoid buying stock that is on the downward trend as we will never know when it will hit the bottom (learnt it from one of the investment book ;-)). I use this guide whenever making a buy decision as I thought it make sense.
 
Following is the thread of our comment :
 
At the time of the writing, Super Group (S10) dropped a further 3% to $1.265. Are you vested in this counter? What is your view?
 
Cheers! 

10 comments:

  1. Hi Richard

    Not using the CNAV method for Super?

    ReplyDelete
    Replies
    1. Hi B,

      Nope, I invested before learning the CNAV... come and think of it, I just has a quick calculation of CNAV, it is currently trading at premium, so from CNAV perspective it might not be a GO... ;-)

      Delete
  2. Now do you think you may have made a mistake?

    ReplyDelete
    Replies
    1. CW8888 : hahaha, I am waiting for your comment. To be frank, not yet regret, I think I will regret only when I realise the loss! Let's see how it goes in 10 years time as I intended to hold it till 55 remember? Hehe

      Delete
    2. My cure is very simple. Use dividends to ease headache. LOL!

      Delete
    3. CW8888, hahaha, ya, I still remember your vitamins (Dividend) analogy...

      Delete
    4. Dividends for Super is not that high right? By the time it covers maybe we are in heaven liao LOL

      Delete
    5. B : hahahaha, ya, not high... so, to answer you : yes, we might already be in heaven liao lol

      Delete
  3. I'm vested too in Super. Fundamentally, they are still sound. I may add.

    ReplyDelete
    Replies
    1. Noted.. My take is still to add only when the counter is reversing back to upward trend ;-)

      Delete

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