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China Fishery Group - Not again?!

Sorry for the fans of China Fishery. It is one disappointment after another for the company. The latest results created a disappointment among investors and the latest bad news was regarding its illegal fishing rights in Russia. The news article is here.


The above chart is the weekly chart of China Fishery Group. Here are my original entry and exit postings and my afterthoughts. It is always heartening to have some "anonymous" reader who warned me about the Russian fishing rights even before the news broke out. (Read the comments section in the entry posting). The link to that particular comment is here. Don't know who you are but thanks :)

Lesson 1 - Analysts

The incident also brought to mind another lesson which i shared previously. The analysts don't get it. (Maybe most analysts don't get it, to give credit to the better ones). At the time of my purchase, i think many analysts were shouting for a Buy. (not sure why the previous picture on the analysts targets are missing from my earlier post.). You have to make your own decisions and not rely too heavily on analysts.

Lesson 2 - Cutting Loss

It also demonstrate the importance of cutting loss quickly when deep in your heart you know you have made a mistake. My loss would have snowballed from a few hundred to a few thousands if i have stayed on in that position. Ouch. So my sympathy with those who still holding on. Hope the Company will repay your faith in them and that the dividends they paid are not robbing Peter to pay Paul

Lesson 3 - Learning how to short

If we open our horizon a bit further, actually this is not a bad stock after all. It is actually trending downwards and we can take a short positions on it when it broke the critical support at 84c. So instead of saving a few thousands by cutting loss early, the question i should ask is perhaps, why didn't i earn that few thousands dollar by shorting the stocks through CFDs? If you want to trade for a living (sorry this comment should fit better in my trading blog), then learning how to short a position is perhaps another skill set to be picked up so that you won't go hungry during periods where stocks are trending down.

I will leave these thoughts with you. It is a great weekend and have a good rest. :)

2 comments:

  1. Stock analysts are just doing their jobs and not responsible for your money. They can't even put their money on the stocks they have covered. What is the moral of story?

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  2. Guess the interest are not aligned. When they can't invest, we say their money is not in their mouth. When they invest, we say vested interest and conflict of interest. Either way, they will kana from investors. Haha

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