About 6 to 7 months ago, I blogged about plunging into my second US counter (EVEP - EV Energy Partner) for long term Dividend Income investment (for the complete list of my rationale of investment, you can read it here). I also blogged about my joy when receiving my first US dividend a month later (click here to read more).
Fast forward to today and following is the snapshot of this counter of mine :
Bought 250 shares on 22/04/2015 @ USD16.65 Per Share
Last Closing Price on 11/11/2015 @ USD 3.85 per Share
Paper Lose of USD 12.80 Per Share
(which Translates into USD3,200 or 77% paper lose ; If I include the dividends collected so far of about USD300, it is sitting at about 70% paper lose)
Of course, as long as I am still holding on to the counter, the "game" is still not end yet. Ultimately I might lose all my capital (which is about USD 4,160, excluding commission) or there might be some rebound in the future, who know? Meanwhile, I will continue to hold on to the counter (since my main investment objective is Income Play through dividend Yield*) and recount the lessons learnt through this investment alone :
1. Paper Lose is as sore as the Realised Lose. When you are witnessing your counter(s) dropping like nobody's business, being a mortal, I still feel uneasy even though I know very well and I am in it for the long term. I guess the cure is to pay less attention to the movement of the prices, or should I? ;-)
2. Importance of investing with care in the unfamiliar industry. To be frank, prior to investing in Ev Energy partner, I am little knowledge about the Energy sector, hence, I restricted my investment to only a minion size (250 shares).
3. Avoid catching a falling knife is easier to say than done. As advocate by many investment gurus, try to avoid catching a falling knife. It is easier to say than done as you only feel the pinch when really holding the knife. The conclusion is, as long as we are still in the game, we will still need to do some catching, so to whether the knife will keep falling or not in the future, only god know ;-)
Is there any particular stock(s) of yours that you have paid (paper or realised lose) to learnt some lessons? What have you learnt?
Cheers!
*From the latest announcement, EVEP will be reviewing their Dividend distribution from 2016 and lower dividend yield is to be expected.
ReplyDeleteThis is how real retail investor will look like. Bo pian!
Cw8888 : yup! I am pretty sure this will not be the last counter like that! ;-)
ReplyDeleteWah! That's steep!
ReplyDeleteI hope your long term is not wrong term!
LP : as it is, I already deemed in the wrong term, just looking for a U-turn! Hahaha...
DeleteI got the same experience. What I am worry is that the big shareholder delist the counter. At these days, many counter was decline a lot and open a door for big shareholder. And some counter was delist and small boy got pain As their cost is much higher than delist price.
ReplyDeleteAlvin 4417 : thanks for the comment. Ya, such scenario (delist) came to mind too. I guess there is "price" to pay either for holding or selling it.. I will just wait and see for the time being ;-)
DeleteOther than its dividend history, did you apply other evaluation matrix to decide?
ReplyDeleteCw8888 : ya, I remembered I did review their financial statement then but I guess the on-going dropping of gas/oil prices took a major hit with this counter...
DeleteHi Richard,
ReplyDeleteIt is absolutely great that u r sharing ur paper losses here! This is one way of showing that u r already accepting and will definitely learn big time gg fwd.
While the value is steep, but just to give u some comfort, nobody can predict O&G stock decline even the largest shareholder, CEO, n insider or even the govt! And me too suffer a 65% decline in one O&G stock also, and more loss in absolute term.
Dun forget we also own super Hahahaa
Rolf Suey : Thanks for the comforting words. Hahaha, ya, Super is another falling knife that I've managed to catch! At times, we just need to learn the hard way (or the only way to really learn) hahaha.
Delete