Wednesday, July 29, 2009
South Sea Petroleum sold - loss taken
Of the 15 companies I have invested in since I commenced buying individual Hong Kong listed shares at the beginning of May, this is the only company which is not only loss making but which is not expected to make a profit any time soon. While the potential upside is large, so is the uncertainty. There is nothing inherently wrong with speculating. However, I have invested almost all of my available cash which is not tied up in either ELDs/CLDs or earmarked for investing in my employer at the beginning of August. If I want to invest in companies that actually have earnings (or at least earning potential), I either need to sell something or reallocate money currently invested in CLDs/ELDs. I have chosen to take the loss on South Sea Petroleum and sold my position this morning at HK$0.049 per share - a loss of about 12% on my average purchase price of HK$0.055 per share.