I have divested my holdings in DBS at $19.16 per share to record a healthy 27.6% total profits (including dividends).
| (prices include transactional costs) |
Reasons for divestment:
1) Target Price
DBS's 5 year average Price to Book (PB) ratio is at around 1.15, which I used to construct my target price benchmark.
In its September 2016 financial statement, DBS had listed its net book value at $16.68. My selling price is thus close to 1.15x its net book value as of September 2016.
| Data from DBS September 2016 financial statement |
$19.16 is also around 1.1x DBS's book value based on my calculations.
2) Realization of Investment Theses
I feel that most of the upside I had anticipated when I first initiated my position in DBS had already been realized (you may read about them here).
For example, oil prices are ...
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