Recall in an earlier
blog posting that yours truly had speculated on the potential share price
uptrend movement due to 2 separate cash distribution and the perceived margin
of safety for the intrinsic cash value post distribution.
The trade did not work out as expected as share price took a
dive following the special dividend ex-date on 28 March 2016. Announcement of
capital repayment did not have the desired effect as well.
Reasons that could explain the downtrend may be expected heavy
capital outlay for investment in plantation land that could lock up cash
reserves. Other than that it was a value trap so far that trapped my investment
funds which did not see any growth for more than 6 months.
This will be the last of Golden Land posting until there are
any new corporate developments.
Note: This is not an investment advice. Buy and sell any
securities at your own risk.
Disclosure as at time of publication: Long Golden Land Berhad.
