This morning I sold some of my shares in Sino Oil & Gas (HK:702).
This is the worst investment in the portfolio by a considerable margin. The sale price of HK$0.193 represents a loss of nearly 53% against my average purchase price. As an exercise in naval gazing, I will spend some time revisiting both the decision to get into this investment and the failure to sell much sooner. As a starting point, while I expect any portfolio to have winners and losers (in both absolute and relative terms), the real problem with this one was that there was not enough clarity on the future earnings stream. As one commentator pointed out there was also an excessive amount of options being granted to management which is never a good sign for investors.
The sale proceeds were reinvested in BCIA (HK694) as reported in my previous post.