Vodone (HK:82) has been one of my worst performing investments. Overnight the company released its interim results - not only did the results fail to meet my expectations, they were well below what the market was expecting. I was particularly concerned to see the huge drop in gross revenue, failure to grow the cash balance by more than the placing proceeds and the adverse impact of PRC government policies. While the company still has a large cash balance and no debt, I lack the confidence to continue with this investment and have sold my position. Time to admit that I got this one wrong and move on.
With a sale price of HK$0.68, my net loss will be a little bit over 40% (assuming a very small cheque from the spin off).
Disappointing.
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