Friday, September 24, 2010
Magic Holdings sold
As a shareholder in Hua Han (587), I received and took up a small allocation of shares in Magic Holdings (1633) which listed today. Magic Holdings' business and fundamentals looked appealing so I gave some thought to the price at which I would be prepared to buy more. The shares opened at $4.36 which compares to an issue price of $3.30. Since I regarded the issue price as being at the high end of what I was prepared to pay, I sold my small entitlement at an average of HK$4.38. Net of transaction costs, I made a profit of 29%. Sadly, the amounts involved were relatively small.