Friday, May 25, 2018

All My Capital On This Counter Is Officially Kaput (hint - not Hyflux)

Recently, Hyflux is in the news, for the wrong reason. It went from market darling (heyday of  $2.42 in May 2008) to trading suspension (at $0.21 in May 2018) in the span of 10 years. Of course, there is still a slim chance that Hyflux might make a come-back (never say never, just need to find one or two white knights). 

I knew a couple of my financial blogger friends got burnt (in variation of impact) but to me there is always chance that such situation can happen to any company that we are vested in. No matter how prudent is your analysis (fundamental or technical), there is always the luck/gambling element in investing (which is not within our control).

Not too long ago, when I was checking my stock list (via the POEMS app), I noticed the list is somehow shorter (the list is not long in the first place, hence it is rather obvious). After further checking, it is confirmed that one of the counter (EVEP - Eve Energy Partners, US stock) has went missing!

EVEP is my only US stock which has been in the decline (for close to 90%) for quite sometime and I've actually mentally written it off. Upon further checking, my capital (about S$5,500, after offsetting the dividend received) for this counter (EVEP) is officially GONE! KAPUT! The company has filed for Chapter 11 last month. 

So, what have I learnt from this episode? Avoid industry/company that you are not familiar with (especially those from oversea) 

So, what is your biggest materialized "rotten apple" thus far? 

Cheers! 

7 comments:

  1. Real life lesson of investing. Compounding investment return may be negative which too many investment writers never emphasize enough

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    Replies
    1. CW8888 : indeeed! But I guess most retail investors got to go through it and hopefully most of them (us) came out a better investor!

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  2. Hi,

    Treat it as tuition fee. Some companies did emerged from Charter 11 in the past. Phoenix reborn. If the company is still in operation, there is still hope.

    Cheers!

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    Replies
    1. PIR : Yup! A tuition fee it is, like newbie playing mahjong for the first time lol. Personally, I've officially written it off, if it is ever to come back, just treat it as bonus lor...

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  3. My friend bought Fannie Mae and Fannie Mac and they also filed for chapter 11. My friend just hold on to it and he make a profit after 10 years. No give up, maybe there will be surprises!

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    Replies
    1. Thanks for sharing the positive experience of your friend. I will just let it be, never give up.. lol

      Delete

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