Last Monday, after much consideration, I decided to close my position on NSL Ltd. I first identified NSL in one 52 week low post back in October 2013, trading at $1.43 then. The price had since ballooned to $1.75 and I decided to lock in profits. 22%, but somehow it left a bad taste in the mouth. There is room for regrets. Regrets at a 22% gain? Possible, let me explain.

The investment thesis for NSL was very simple. It was a high dividend yielding (7%), conservatively financed issue that is trading near 52-week-low plus at a discount from book value. The reason for its price rise is a disposal of its subsidiary NSL Chemicals (Thailand). The transaction is expected to add another 30 cents to NSL's net book value. I certainly did not predict this. All I did was to take a position based on a back-of-the-envelope calculation, minimising potential downside while positioned for possible upside...