Both companies were under my radar when they were some 30% to 45% lower than current price. That means I loss about 50% to 90% gains.
I was alerted to straco when it is trading at 28 cents, I owned UMS at 37.5 cents but sold early at 44 cents.
It is perhaps important to review why I give them a miss and learn some lessons.
It was a s-chip, I have doubts about its numbers, especially when another blogger highlight the low depreciation of bio assets. The yield then was rather weak, even when I project a 50% growth in dividend. But dividends more than double in 2 years. Now we know quite a bit of its cash is real, and its operations is real. ( anyone can visit shanghai)
My mistake: I used trailing dividends. More focus should be spent on its FCF generating capability, and the fact that it is growing. Too bad it is a s-chip.
Not a s-chip, with dividend at more than 10% when I bought it. Aware of its FCF strength and the cyclical sector it is in, also aware of its heavy reliance on AMAT for profits. But believe I got it with good MOS.
Why did I sell? Because the owners Andy and company is selling a significant stake in the company, and it is the second time that do it in a year. The first selling is what spark the low price which allow me to collect on the cheap. I still hang on to my shares when the news broke, then shortly they announced Andy's wife will ceased to be a director and reassigned a consultant role instead. This movement does not make sense to me as how effective can a insider be a consultant or is already not a consultant? So I finally decide to bail out.
Well, on hindsight, it was a wrong call.
I am fine with my decision as money not made is better than money lost. But I think I will really pay more attention to FCF growth, and if sell off is not too frequent or big, such that ownership of management come into question, I should have keep my steel. The FcF growth may or may not result in dividend growth, it will take 1-2 years to find out how friendly is management to shareholder, but there is a good chance of better dividends, especially in both cases, they are both relatively debt free.