SRS Portfolio as of 28 May 2022 + Divestment of OTS Holdings

Recap

I initiated a position in OTS Holding in July 2021 after making a nice profit of $23,815 from my placement tranche in June 2021. (See IPO tikams for 2021). This is to show some support for the listing since I managed to profit from it and the Company also promised to pay a dividend, which $700 was received in Nov 2021.

Getting rid of the Sausage

The full year results were a huge disappointment when it was announced in Sep 2021 and the situation did not improve. I have wanted to cut this position for quite some time now but didn't take action on it as the daily trading volume was very low. I finally managed to cut my loss on OTS Holdings this week even though the daily trading volume remained low. I crystallised a loss of $12,610 on the SRS account 🤕 . This loss is pretty hefty considering that it is one year's worth of SRS deposit.

While I managed to get away "unscathed" if I include the IPO tikams, it nevertheless left a bad taste in my mouth.

What are the lessons learnt? 

There are a few lessons to be learnt.

1. Avoid small cap stocks - the liquidity of small caps are usually very low and the lack of interest from investors means the share price can drop under its own weight!  
2. Cut loss early - get out quickly when the fundamentals were not up to expectation. I could have cut loss when the final year results were announced (highlighted area below) but held back due to the lack of liquidity
3. Don't buy a stock just because you made money from the placement tranche - well, this shouldn't be the reason for buying OTS but it did cloud my better judgement
4. Wrong sizing for small cap stocks - probably my sizing was too "greedy" as well for a small cap stock 

Dividends

I received the $700 dividends from UMS Holdings on 20 May 2022. Including the dividend, the cash standing as of 28 May is $108,383. 

Performance since inception 

The IRR dropped from 7.6% to 6.7% since I last measured it. 😵😡 

Happy SRSing