Yesterday, a reader asked me if I would be selling my investment in SembCorp Industries. I replied that if I thought SembCorp Industries was fairly valued at $5.00 when I made my first purchase a few months ago, would I sell at a lower price?
Honestly, the investor in me said to stay invested while the trader in me said to look at possibly selling at least part of my investment. Let me talk to myself and throw some light on the matter.
As SembCorp Industries' stock price fell in recent months, I added to my position at various price levels: $4.80+, $4.50+, $4.20+, $4.10+. My memory is a bit patchy but something like this. I believe that SembCorp Industries is a good company and that Mr. Market was overly pessimistic as the stock kept falling in price.
Then, whether I would sell or not would depend on whether the investor or the trader ......