Security code KDC (Kido Corporation) was bought on March 27, 2017, as the stock surpassed VND40,000 / share with potential growth based on transferring KDF deal. Although its price peaked three time at VND42,000 / share, we did not recognize profit due to our ambitious expectations. As the price plunged down under VND40,000 / share on 17 April 2017, we decided to sell to cut loss at price VND39,000/share, lost VND1,000 per share. The security’s price has even lower than our cut loss price at some points, and at the moment, is same level as we sold.
Fail expectation to STB restructure process led to our speculation investment on STB, so that we had to cut losses immediately after T3. Then, STB’s price has continuously fallen nearly 8% from the point we decided to sell.
The second time investing on SSI this year, we failed again as we also had to cut loss right after T3. The reason is high purchase price, although it was cumulatively adjusted in comparison with its nearest peak. Despite of many prospective signs, for example, promising expected market liquidity in the first quarter 2017, and updated accounting rules and principles that might motivate SSI profit in the first quarter of 2017, SSI drops off as much as the market’s general trend. Once again, the lesson, which we mentioned before, should be remembered is that “It is difficult for SSI to tell their own story and to create breakthrough growth. In bull market, investors have many better options than SSI, as well as in bear market, the security finds difficult to stand out.”
Update:
In general, after these stocks reached the lowest point, all recovered and created the new peak in June and July because of positive news in stock market.
SSI’s stock price has recovered in from May to early July, peaked up to the highest price at VND28,000 / share because expectation about the derivative market, which is about to be deployed soon, lead to the increase in stock’s prices of the most of securities companies.
Although KDC shares fell sharply to 38,000 / share, the stock started to rise from mid May to early June, up to the highest price of VND47,000 – VND48,000 / share in July 2017.
After dropped to VND10,500 / share, STB increased significantly in the first half of June to VND14,700 / share as the STB Bank officially disclosed the new Chairman Mr. Duong Cong Minh (he was also the chairman of Lien Viet Bank).
To conclude, April 2004 Vietnam stock market saw a huge amount of trading right after T3 period as many shares depreciated relatively and some of them lost important support points.
