Monday, August 09, 2010

China Zhongwang - loss taken

I sold my shares in China Zhongwang (1333) on Friday. The stock has been a consistent disappointment - allegations of irregularities, botched handling of those allegations, inadequate communications with shareholders generally and (on my part) a growing belief that the company will suffer from greater competition than in the past. The high dividend yield and solid looking balance sheet is not sufficient to keep me in an investment when my confidence in management has been eroded.

It's time to move on - the question I am asking myself is why I didn't sell sooner?

I sold at $5.01, taking a loss of 27% against my original purchase price (after allowing for the dividend).

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