Portfolio Update - Time to Cut Losses (T4B)

I've been holding onto this stuff for way too long. I could've sold everything off when prices hit upwards of 0.70, but I didn't. Could've, would've, should've - it's all water under the bridge. I took a gamble on the Garden Fresh IPO from Sino Grandness (T4B), and it's about time I liquidated my holdings. I would most definitely make a loss, but I am thankful that my other trades (thank you, Silverlake Axis) somewhat made up for it

Time to get out? I'm done with speculating on this stock for now.

For the uninitiated, allow me to give you the cliffnotes: Sino Grandness, a Chinese beverage and canned foods producer, had been wanting to spin-off its subsidiary, Garden Fresh, for quite a while. They eventually submitted an application to have Garden Fresh listed on the Hong Kong Stock Exchange (HKSE) on 1st April 2016. The spin-off would have created huge value for Sino by potentially bringing in big investors and by providing a means to settle some of their outstanding debt. Many people (myself included) saw target prices above 0.80. The price crossed 0.70 earlier this year, but eventually, the price started tanking. It dropped to 0.60. 0.50 followed soon after. After a few short-sell attacks, and a horrendous miscommunication of news (a rumour was spread that Garden Fresh products had failed an official food test when they had actually passed), the price settled in the 0.40 region. After it became clear that the IPO application was going to lapse, the price dropped to the 0.30 region. Thus far, Sino Grandness has not released any more information regarding the IPO application apart from the fact that they would still be trying to get Garden Fresh listed on the HKSE.

Now that the IPO application has lapsed, overall negative sentiment has sent the price tanking to the 0.30+ region. A sudden move back to 0.50+ is unlikely at this juncture, and with the upcoming rights issue (with the intention of raising money to fund their business activities), the share price looks to drop even further due to dilution. I feel like Sino's management could have handled this fiasco a lot better.

I knew the risks when I invested in an S-chip - this time round, my gamble didn't pay off. It's high time I cut my losses and put the money to better use somewhere else. I'm done waiting.

Until next time.


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