Best World International Limited - A Lesson In The Making

Just like to highlight the recent share price dropped for Best World International Limited.

Profile:

Best World International Limited is a company that develops, manufactures, and distributes skincare, personal care, nutritional, and wellness products worldwide. The company operates through Direct Selling, Export Sales, and Manufacturing/Wholesale segments.

It is basically a MLM company (similar to that of Amway) that sell personal care products through direct sales channels. They have expanded their presences to many other countries recently. There are lots of discussion on Valuebuddies on this stock recently.

What Happened?

During the last 2 days, the price has dropped from the peak of $1.450 per share to almost $0.900 per share, then it returned back to $1.135 per share on Friday.

The Changes In The Share Price Over 5 Days

I don't really know the real reason for the drop in share price. But it could be related to its latest announcement of the queries in SGX, which I felt should not matter to its fundamentals.

Nevertheless, over the last 1 year, the share price did rised significantly.

The Rise In The Share Price

For those who bought the stock at the start of the year, there is still a lot of buffer for them to hold.

However, for those who bought over the last 5 days, you must be wandering what you should do with the stock?

My Opinion/View:

I am not vested in this stock and so I didn't do any Triple S Scorecard testing on it. But for me, I always wanted to invest in this stock, but that's after it became popular and I decided to go for other opportunities.

Anyway if you bought on a high and thinking whether you want to keep the stock, it will depend on 3 factors:
1. The due diligence you did.
2. How long can you hold?
3. The catalyst moving forward.

If you are have already did enough due diligence and deem the fundamentals remains unchanged, and in addition, you can hold for a very long time. I think you can still hold on to the stock for a while.

This is because moving forward, it seems like the company will have a bumper year and it has been increasing its dividend over the last 3 years. Furthermore, it is very easy to expand in a MLM direct selling business in new countries - thus this maybe a catalyst in future.

In Short

The lesson I learnt from this incident is that;

DO NOT BUY A STOCK WHEN ITS PRICE HAS REACH THE PEAK and remember,

WHAT COMES DOWN WILL GO UP and WHAT GOES UP WILL COME DOWN.

There are always other opportunities lying around, you just need to search for them.

Current Price: 1.135 as of 11 Jun 2016

Please do your own due diligence before you invest in this stock.

Do note the author is not vested in this stock/company.

If you are interested in my Triple S Scorecard, contact me through my blog or message me on my T.U.B Investing Facebook Page.

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