DividendGuy67
Publish date: Mon, 13 May 2024, 10:19 PM

Look at the price actiion since 1995. 
- After GFC low, the stock price did manage to challenge previous high in Dec 2010, failed, and fall.
- Then challenge the high again in Aug 2014 with new high but not sustainable and then fall back again.
- But this time, something has changed.  The fall is no longer convincing at COVID low - it printed a clearly higher low..
- Then, the bull came back with a vengance.   
With this kind of price action, how can you sell if you already have a position?   
My average entry price excluding dividend is 91 sen. (the dividend yield then was ridiculously high).
- Today's dividend yield, at 7 sen, still beat FD with 3.7% per annum.
- It's dividend payout ratio is low - past 8 years, only 24% earnings.  
- Including dividend and partial profit taking in the past (a mistake), my average cost has reduced to 45 sen (lower than COVID low i.e. no risk to me now). 
Still have decent position, nothing much to do now but just keep riding.   
Like to think there's a decent chance, before this bull run is over (maybe measured in years), that it will challenge the all time high printed in 2000, nearly 24 years ago.   I'm a long term investor, and I'm patient.
Keep investing simple, it's NTA is 2.97, it is not unusual at the peak of the bull run, for stocks like this to trade at book value or more.  As long as you believe in its NTA, keep reminding yourself and you won't want to sell when it breaks out later.  Technicians will tell you that if it breaks out above 2.19, given the nearly 3 decade of consolidation, that bull run over the next decade after the breakout will be spectacular!  

 

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