Thursday, 18 June 2009

Telling an old story

The last 2 years, before the onset of this severe bear market, the following stocks of mine were taken private: Maxis, MOX, VADS, ICP.

These were viewed with some annoyance then, as they were carefully selected stocks for the long term.

Maxis and MOX were privatised before the downturn started. During the downturn, VADS share price was well supported near to the privatisation offer price.

On the other hand, each ICP was exchanged for 30c cash and 0.6 shares of IJM priced at 5.80. Even before the privatisation, the price of IJM went down significantly. Fortunately, the price of IJM subsequently rebounded back to around $5.80 recently and those who held onto the IJM shares obtained through the privatisation of their ICP shares were able to cash out at close to the original offer.

In retrospect, the privatisation of these good companies by the major shareholders, probably saved the minority shareholders from short-term losses, as these shares would definitely have gone down lower with the overall bear market.

Sometimes, we are saved or rewarded by the swings of the market. :-)

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