Big Idea 4 is…Ellipsiz Ltd.
In my last post, I have stated that “In 2 months’ time, it will announce its full year results and more answers on the use of its cash pile could be reveal in its financial report. Therefore, I will decide then on what to do with this company….”
After the release of the annual report and receiving a reply from the investor relations, I have decided to offload all my position in Ellipsiz Ltd at a loss. Nevertheless, do note that this loss was based on my re-entered price. I had previously made a 280% gain on the company prior to selling all at its peak.
So what were the factors that caused me to sell off this Big Idea?
1. Annual Report
|Abstract from Latest Annual Report|
In my opinion, the strategy seem to be a bit directionless. It sounds like “I will invest in any undervalued opportunities”. It is not a wrong strategy but I believe there are other better/more established investment holding firms for me to invest in.
2. Reply From Investor Relations
If you read through the reply, you will probably get the W** feeling. "Say like never say". Maybe even they do not have an answer?
Thus, the above factors made me consider my holdings in Ellipsiz Ltd seriously and I decided its time to offload the company fully.
Big Idea 6 is… Sysma Holdings Ltd.
I did not talk much about the company because StockResearchAsia has already wrote a lot on the company.
Despite the positive vibe in the blog posts by StockAsiaReport, I still decide to sell the company due to the following:
1. Dividends below expectations
Despite having so much cash, the company only increased the dividend from 0.5 cents to 0.8 cents. I was expecting a much higher dividend payout but I guess the management had other plans.
2. Lack of Catalysts
I do not foresee any other catalysts in the next year for the company, other than using its cash to acquire other companies. Furthermore, with so many en-bloc condo purchases by the developers, I do not foresee Sysma Holdings Ltd having significant opportunities in its niche market - the construction of GCB projects.
3. Other Opportunities
Better opportunities in other construction companies has arise and the time seem right.
Thus, in view of the above reasons, I decided to sell all of Sysma Holdings Ltd at a slight profit!
Please do your own due diligence before you take any action on the above counters.
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