IHH Holdings was one of my top picks of IPO this year as it is a defensive counter. Being one of the leaders in the healthcare industry in the region, with hospitals in Singapore, Malaysia, India and Turkey, it is definitely one of the jewels out of the IPOs in recent months.
My confidence in IHH Holdings is further boosted by the strong names in the list of cornerstone investors, and the high percentage of oversubscription rates by the top analysts and brokers of the cornerstone investors indicated their strong interests and confidence as well.
Hence I subscribed to 20 lots of IHH Holdings, and I was fortunate to be alloted 4 lots of this counter at the indicative price of $1.113 per share. I had intended to buy a couple of lots of IHH Holdings as a short term play. This is mainly because IHH Holdings did not specify that they will pay dividends as well as the many negative review by a few analysts on the high PE ratio. In addition, with the volatility of the markets at this point of time, I do not know how the longer trend will be for this counter, especially when all the hype about it dies away like most IPO.
On the first day of trade, I decided to sell all my holdings. As I do not know how the events will turn out, I sold 2 lots at $1.220 per share initially and held on to the remaining 2 lots. I did this because if the share price move higher later, I can sell the remaining lots at higher price. On the other hand if the share price dips later, I have already secured part of my holdings at $1.220, which is already a 9.6% profit over the IPO indicative price.
However, as time passes, it seems to me that the share price continues to dip due to high selling pressure from short term players like me. In a panicky mode, I sold the remaining 2 lots at $1.205, resulting in an average selling price of $1.2125 per share, which is still an approximate 8% profit. Although later in the day the share price reached a high of $1.240 before closing at $1.225, I shall learn to be contented with my decent profits in such a short term play, especially in such volatile times.
My thoughts at that time: I get very panicky when the share price fluctuate so quickly due to the high buying and selling volume. This caused me to chase after the dipping share price to sell as the price was going below $1.20. However, soon after the selling pressure subsides, the real investors moved in to push up the share price, and that made me want to slap myself for not sticking to my initial target price of $1.225 per share for a 10% profit.
Lessons learnt: I really need to be discipline and stick to my initial plans.
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