Breadtalk is an uprising powerhouse in the food and beverage sector. With its firm and strong fundamentals, and its growing expansion in China, it is also regarded as a defensive play with good dividends. I have witness the fluctuations in share price for the past year or so, as it rose from around $0.50 to more than $0.60, before falling to around $0.55 range after the bonus share issue.
After studying the pattern in the range-bound repeating rise and fall, I decided to buy into the counter with the intention of short term play, as it was observed in the past year that the share price would fluctuate between $0.46 to $0.55 in the event of any sell-down.
Opportunity presented itself soon after it went XD in May, as the share price suddenly plunge by 10% from $0.54 for no apprent reason within a short period of 2 days. Hence I took the chance to buy 10 lots at $0.49 per share, with an intended target price of $0.55.
After the purchase, the share price dipped even further to $0.46 before a gradual rebound occurring 2 weeks to gradually move north. During this three month period of holding the counter, I was contemplating whether I should hold on to it or just sell below my target price for a minimal profit. However, as I was not in need of cash, I decided I should stay discipline and stick to the initial plan.
My efforts soon paid off 3 months later as it rose above my expectations to $0.56 per share. I sold off all my holdings for a decent profit.
My thoughts at that time: As I contemplate whether to sell or not, I remembered my biggest weakness in investing is my ill-disciplined nature. To remind myself to stick to my plan, I made the final decision to sell.
Lessons learnt: Sticking to the plan is the best plan in my opinion, as if prices rose further, I can console myself that I had been discipline to stick to the plan, while on the other hand if prices drop, I will not have any regrets for missing the opportunity to sell at a higher price.
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