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25-08-2023, 08:45 AM
I first bought into BPlant in mid-2021 around RM 0.60 per share on the basis that it was an undervalued stock. Then the price started to go up a coupled of months later around Feb 2022. I sold off part of it when it went above RM 1.00 per share.
I was greedy and did not sell all as I thought that even at that price it was still below my estimate of intrinsic value.
The price did not hold and as can be seen from the chart below, it began to decline. You know my first thought. I was an idiot not to sell all and left money on the table.
Then sometime in Sep of 2022, when the price dropped back to around RM 0.60 per share, I thought that since it was below my estimate of intrinsic value, I should buy back what I sold. And that was what I did.
Then in Jun 2023 the price started to move again. This time there was some rumour that the company was planning to sell off its plantations. I started to sell when it the price went above RM 0.80 per share. But the company a few days later announced that there was no such thing.
But this did not stop the price from moving upwards as you can see from the Chart below. As the price continued to move up, I continued to sell.
![[Image: BPlant-transactions.png]](https://i.postimg.cc/VNP56mK9/BPlant-transactions.png)
I thought that I was not going to be caught like last time and I was planning to sell all when the price goes beyond RM 1.10 per share.
As you can see, our punters/speculators were very good as they continued to push the price higher even though there was no news on why the price is going up.
Anyway, to made the sad story short, I sold about 98 % of my holdings by last week with an average selling price of RM 1.00 per share.
You would think that there should be a pat of the back for making money. Then the announcement came yesterday that the company would be sold to KLK at RM 1.55 per share.
You can see that I easily left 50% of the potential gain on the table if I did nothing until the announcement. Was I an idiot or not?
Moral of the story?
a) We have clever punters (?) who have been buying when prices are > RM 1.00 even though there is no news about what is happening to the company.
b) We can learn the wrong lessons from history.
If you want to see my 2021 analysis of BPlant go to Is BPlant one of the better Bursa Malaysia stocks?
I was greedy and did not sell all as I thought that even at that price it was still below my estimate of intrinsic value.
The price did not hold and as can be seen from the chart below, it began to decline. You know my first thought. I was an idiot not to sell all and left money on the table.
Then sometime in Sep of 2022, when the price dropped back to around RM 0.60 per share, I thought that since it was below my estimate of intrinsic value, I should buy back what I sold. And that was what I did.
Then in Jun 2023 the price started to move again. This time there was some rumour that the company was planning to sell off its plantations. I started to sell when it the price went above RM 0.80 per share. But the company a few days later announced that there was no such thing.
But this did not stop the price from moving upwards as you can see from the Chart below. As the price continued to move up, I continued to sell.
I thought that I was not going to be caught like last time and I was planning to sell all when the price goes beyond RM 1.10 per share.
As you can see, our punters/speculators were very good as they continued to push the price higher even though there was no news on why the price is going up.
Anyway, to made the sad story short, I sold about 98 % of my holdings by last week with an average selling price of RM 1.00 per share.
You would think that there should be a pat of the back for making money. Then the announcement came yesterday that the company would be sold to KLK at RM 1.55 per share.
You can see that I easily left 50% of the potential gain on the table if I did nothing until the announcement. Was I an idiot or not?
Moral of the story?
a) We have clever punters (?) who have been buying when prices are > RM 1.00 even though there is no news about what is happening to the company.
b) We can learn the wrong lessons from history.
If you want to see my 2021 analysis of BPlant go to Is BPlant one of the better Bursa Malaysia stocks?