A recent article mentioned that a specific company has had its fundamental business changed and that its shares had performed poorly ... Should we sell now at S$2.17 (purchase price was $3.08)? - Seedly
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Anonymous

Asked 3w ago

A recent article mentioned that a specific company has had its fundamental business changed and that its shares had performed poorly ... Should we sell now at S$2.17 (purchase price was $3.08)?

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Sounds like Singtel to me. If you are purely looking at price, I believe you did not do your own due diligence when you decide to purchase it at $3.08. Like Peter Lynch said, know what you own, and why you own it. If you can't explain to a 10 year old why this company is so great and worth and investment, then dont buy it in the first place.

That said, I believe Singapore's telecom industry is in a lot of trouble especially since its bad decision to invest in Bharti Airtel. Also, if prices already fell way below your average price, why did you continue to hold it? Keep asking yourself these questions. Also, for my own case, I would rather "cut the weed and water the flowers" as soon as possible for the overall benefit of my portfolio. There are much better investments out there than Singtel (opp cost) but due diligence has to be exercised. Hope this helps!

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Considering that there is a change of CEO and the stock price went up due to the seemingly positive sentiment on the news, you may want to wait a bit more before selling off, so that your losses will be smaller should you wish to cut loose.

If you know where to look (e.g. SaaS industry, platform businesses), there are so many better companies overseas that are growing at an exponential rate with such huge potential (which in my books, is another way to think about....it's actually World Domination! Well maybe the US first, then the world. Heh)

FYI, I previously owned Singtel and sold them at a thousand+ loss. I lost more in STI ETF. The courage to sell them at a loss will take time and a paradigm shift in mindset. No one can help you come to terms with this and it's something you'll have to wrestle with yourself internally.

In that process, you'll grow to be a better investor.

Just want to leave you with a food-for-thought quote and these videos:

"Why add more of your hard-earned money to stocks that aren't working?" - William O'Neil, How to Make Money in Stocks

  • Everything You Need to Know About Finance and Investing in Under an Hour, delivered in a clear and understandable manner by William Ackman, CEO & founder of Pershing Square Capital Management

👉 https://youtu.be/WEDIj9JBTC8

  • ARK: The five platforms of disruptive innovation

👉 https://youtu.be/m4_AAmLpwR8

You can find a lot of YouTube channels dedicated to stocks discussion.

All the best to you, and if you've any further questions, please feel free to check with the community here (and on Seedly Finance Facebook Group...lots of helpful people there too)

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If you can't stomach the loss, then sell and find another stock to invest. Always do proper research before investing.

Happy Investing !

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Hello,

I think for any company you invest, you should evaluate whether you still understand the business even after the fundamentals had changed, and implement a stop loss plan, for instances, sell when the share drops 15% from cost price, to prevent further losses. If you truly understand and believe in the business, you can always average down as well.​​​

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Another question is, what are you gonna do with the money in the event you sell it? Are u using it to settle an emergency expenses or will you reinvest it in something else you have more confident in? If you are just gonna put it in the bank, then I will say just keep it, else start looking out for other areas you can invest the money in first.

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Really depends on why you bought the stock in the first place. Majority of the time, if the fundamentals of the companies have changed, it changes why you invested in the first place.​​​

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Sounds like Singtel 🤔

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Not sure which company you're referring to. if you feel the prospects of the company is bad, then leave/avoid it.

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Karen Koh
Karen Koh

3w ago

Ironically, someone stated that investment is long term....is there any prospect for Singtel in future?
Lee John
Lee John

2w ago

No. When in doubt, compare. Take a look at Verizon or T-mobile share price and you can see the difference.
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