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Monday, 3 February 2014

Killing the Goose on NSL

NSL announced the disposal of its subsidiary NSL Chemicals on 17 Nov and the disposal was completed on 3 Dec.  The transaction is expected to add 30 cents to NSL's net book value.

NSL share price on 15 Nov'13 at $1.44 and was at its 52 weeks high of $1.75 on 21 Jan'14.  Some say the special dividend have already been priced in by now.  But there are views that its share price will continue to climb to $2 mark.

There is no right or wrong answer whether an investor booking the profit now or wait till it goes beyond $2 mark.  Just make sure you check your greed temperament.

On value investing, Buffett says holding period is forever.  So, if an investor proclaim to be a champion of value investing then you will need to hold on to NSL forever; and not just going for the special dividend.   Investing into NSL for the sake of special dividend is trading (with greed) in the guise of value investing.  Don't kid yourself.

Let's say you have booked your profit on NSL already.  There should be no seller's remorse then if and when its share price continues to climb.  Believe in yourself that the capability to weave the same winning formula, again and again.  Well done!

There is no one ultimate and right way for value investing.  Can make money and have a good night sleep are very important.

Remarks : Adapted from the following website, Reaching for Financial Freedom in Singapore

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