Sold Changshouhua Food Company (1006.HK)

2/25/2014

Changshouhua Food Company (1006.HK) touched my stop-loss today, which was placed at 8 HKD,
representing a 20% loss. As a result, I sold the entire position at market. I hold only 5 stocks right now,
with 27% of portfolio in cash. Stock markets around the world have risen quite significantly in the past
few years, so a correction seems quite reasonable at these levels (at least that’s what everybody else
anticipates). However, there is still a lot of money on the sidelines, so I’ll be watching for any good
opportunities I will to deploy my cash regardless of short-term market volatility.

Click here for the list of remaining HK stocks in my portfolio.

2 Comments

Mark Studheim

5/13/2014 01:11:35 am

Hi there,

I stumbled upon Changshouhua Food Company Limited stocks and found them quite thrilling. However, I cannot understand why the stock started to tumble down at the end of 2013. I simply don't see any reason for this. Do you have any ideas why this is the case? Unfortunately, I do not know any Chinese, so perhaps some information available on the internet remains hidden from me.

Sincerely,
Mark Studheim

Matus Kubala

5/13/2014 11:38:59 pm

Hello,

yes it's a great company in my opinion, I wasn't able to find anything explaining the big drop. But if you take a look at the chinese consumer staples sector, it significantly underperformed the index in the past couple of months. I sold it because it triggered my risk management rules. You will often see, that stocks go down before there are any significant news, price is many times faster than the fundamentals. It might be because insiders are selling out or large mutual funds liquidate their positions, both situations being bearish for the stock.

Sold Changshouhua Food Company (1006.HK)

Leave a Reply.

Categories

Archives