Ok. I feel guilty as I penned this.
Remember I blog about Parkson Asia. I bought at 86 cents. I believed it can be a grower. Some short term pains perhaps, but a longer term good company.
When the company fall 4 cents in a single day, from 86 cents to 82 cents, it scare the shit out of me. The dividend yield of 3 plus percent did not provide enough painkillers effect. I sold out.
It became clear, that physiologically the 4% lower limit dividend would require a price of 75 cents.
It hover above 80 cents for quite some time. I key in an alert for 78 cents. It was breached quite soon.
Volume was extremely low, so when I have to make a decision to queue at 74cents or just get it for 75, I choose the later.
Of course, the price went south further. This time round, my mental model is vastly different. The conviction that it's ok, just wait is loud. In fact, I always tried to buy in tranches, I am
Looking forward to get my second tranche with the announcement of FY results, if it disappoint. 65 cents would be the next entry point.
Do note that I am not talking about the merits or lack of in this investment. I am talking about sticking to my plan allow me a piece of mind, and hey, 86cents and 75 cents is not a lot of different given the small amount of shares I bought. But it is a world of different mentally. I now know what I would do to approach other growers theme.
The story remain the same. High cash level, 24 cents per shares will allow it to be in net cash position as it expand aggressively, since the asset light concessionaries model is highly cash generating. The cash level will go down definitely as it expand, and if the gestation period of the new stores take longer, then it's attractiveness will be further reduced. But will this company go the way of loss- making? Highly unlikely as the home turf Malaysia has the biggest share of revenue.
Story the same, but mental strength different, because of the uncertainty of not following my own plan. The earlier is panic and unsure, this latter is calm ... Until the next storm