Friday, November 20, 2009

Starhub


I think I am addicted to blogging since I started blogging yesterday.


I am really excited to post my recent trades and to share my thoughts on it.


Starhub, I had catch the falling knife on this trade @ 1.94 on 21 Oct 2009, after the news came out that starhub had lost the EPL to singtel. On hindsight, if I had follow my rules, I should have waited for the price to stabilise and indicators to show the buy signal before entering @ around 1.89-1.91 on 28 Oct 2009.


Result was released on 10 Nov 2009, and Starhub had increased its dividend to 5 cents per quarter. Therefore, it is giving 20 cents per year. If anyone had long starhub at the price @ 1.9, the yield is almost 10.5%


Since I have decided to trade this counter right from the start, I had closed my position on 11 Nov 2009, @ 2.03, which is near to the upper envelope.


Lesson to be learnt: Do not catching a falling knife, wait for it to stabilise and signals to appear before buying.

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