Dear Sifus,
I seek your opinion on two subjective scenarios:
1. If you have a stock which already has 1 bagger+ or more what do you do with it?
a. Do you continue to accumulate more and hold if you see there is potential based on the chart, FA and believe mgmt is still doing a good job.
b. Sell partial to recoup cost and partial profit, then let the remaining ride the wave and gain more profits. No more topping up in shares.
c. Do nothing and just observe and let things play out by itself.
d. Sell all if then is indication the stock price will dip. Can't be too greedy.
2. What if your stock has gained a decent return % or even a few baggers, but there is an upcoming share split or bonus issue? What do you do?
a. Accumulate more till they finalised and execute the share split and bonus issue
b. Sell partial, the rest let it ride with the wave.
c. Do nothing, just let the share split or bonus issue and observe what things pend out.
d. Sell all if there is news the share split or bonus issue will dilute earnings etc.
I think everyone has a different take on the above as everyone's risk & return appetite is different. I would say their past & current experience will also have a factor on their decision on what to do.
Question 1 [5 markah] b.
Question 2 [10 markah] c.