It takes conviction to buy a stock, but it takes courage, and some guts to acknowledge your mistake and do what is necessary, even if your heart has to break a little.
I have made the decision to cut my losses, and divested 27,000 shares of Indofood Agri at 25.5 cents each.
This has translated to a 30.9% loss of my initial investment of 37 cents, and in turn became a 6.44% realized loss off our entire portfolio.
I remember blogging about why I bought the stock in the first place, and here are the 3 points to justify my decision then:
Low Book Value Acquisition of Treasury Shares Cash Hoarding
Now, with an opposite and hopefully objective standpoint, I can justify why these three are no longer attractive enough for me to buy the stock, nor to average down with a better price.
Low Book Value? Maybe Not…