As long as your reasoning to sell was correct at the time then I wouldn't let hindsight bias and outcome bias rule your investment decisions.
Do you keep an investment journal and write your reasons for buying and selling stocks?
I try to but I am overtrading the past few months. Time to re-think strategy and adjust accordingly.
Selling EBT was just wrong timing. They announce a 3.5 cents maiden dividend on the day I sold. Just like the WCB I sold for $4.45 a week before the takeover battle. Just bad luck timing. Not the first and won't be the last either.
I try to but I am overtrading the past few months. Time to re-think strategy and adjust accordingly.
Selling EBT was just wrong timing. They announce a 3.5 cents maiden dividend on the day I sold. Just like the WCB I sold for $4.45 a week before the takeover battle. Just bad luck timing. Not the first and won't be the last either.
Born2invest, reason for EBT, to take profits, it's going too far too quick.
For WCB, in it mainly for the 11 cents dividends. Solid profit result and outlook.
Lessons for EBT. Share price usually run well over intrinsic value. So let profits run.
For WCB. The purpose was served. Just the T/O offer a few days later make it look like a bad sell. Also lessons to learn for the T/O, the first offer is usually not the last. Opportunity to buy sub $6 for WCB possible on the first date. Maybe still a slim chance of a higher takeover offer for WCB in the $10 possible.
SMALL CAPS
Why you should keep an eye on Supply Network
PUBLISHED: 23 JAN 2014 14:40:49 | UPDATED: 24 JAN 2014 11:31:40
Trevor Hoey
Despite a strong share price rally in January, Supply Network remains a stock to keep on the watchlist given management’s proven record of underpromising and outperforming.
The company is a quality business with exposure to niche markets and its Multispares division supplies parts and components to the aftermarket truck, trailer and bus industry in Australia and New Zealand.
The fact that it has established a strong position in exclusive markets that often throw up significant challenges in terms of sourcing and distribution provides it with a competitive edge as barriers to entry are high. Supply Network’s operations are difficult to replicate and this provides the company with significant pricing power which has been instrumental in it consistently delivering strong margins.
Returns on equity have been particularly robust with the company exceeding 20 per cent per annum in recent years. Unlike many of its peers, the company has successfully addressed the challenges of manufacturing in Australia, and is one of the few examples where facilities have been successfully expanded in recent times. However, parts are also sourced from overseas because of vehicle requirements and the company’s efforts to remain competitive.
SI view: Management is looking to expand the traditional Multispares truck and bus parts operations into the trailer market, effectively increasing income but also providing diversification. The trailer industry is highly fragmented with strong reliance on specialty parts, ideally suited to Supply Network’s business model.
Originally Posted by soulman
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