FIL Ltd on 6th August 2013 bought 358k Cordlife shares @ average $1.13. This raised its holding from 20.567 million shares (8.85%) to 20.925 million shares (9.0%)
Joes had ask me: Cordlife is a fantastic performer, why not take profit?
Well this is a very interesting question. Many of us are tempted to cash out.
Many for-runners in this forum I believe have already sold out. Some may have sold out too early, other may be lucky to sell at its peak.
Observer2 had confess: – “I am a bad trader and I have stopped selling a stock and buying it back at a lower level. In theory it is so easy and attractive to do but in practice, it is mostly disastrous. I fully agree with Observer2 as I myself is not a good trader.”
I like to put forward this question:
You buy low, then sell high. Then what do you do with your profits at that point of time. Buy higher, sell lower? It’s always a zero-sum game. Too often we will lost focus and end up missing the boat because very few people would like to buy at much higher price as proven.
I believe in building up a strong portfolio of ‘CORE STOCKS’. CORDLIFE is one of my core stocks. Although it is already fairly price, it has good growth potential. Its oversea acquisition is gradually taking shape, revenue is growing and good profit margin. Dividend of about 3% may not be very attractive but is not too bad. 3% is still better than ST average of 2.6%. If there are other more attractive stocks and when fund are needed for other more attractive stocks than that may be a good reason to cash out or reduce holding for another stock as core stock. "Why sell the goose that going to lay the golden eggs" What needed is patient and keep track of bussiness growth.
I have bought excess Cordlife share on several occasion on price weakness and sold off on price resistance but the core holding percentage will still stay the same.
The key is not to sell off potential growth stock at its early stage of growth like CORDLIFE which have the potential of becoming another GEM. The true is very few of us are will to buy into stocks like Super Group, Osim, Raffles Hospital and Vicom, at this price.
CORDLIFE FY2013
Gross Margin increased from 71% to 73%
Exclude one-off disposal gain of $2.7 millions
Excluding one-time non recurring cost of $1.0 million in FY2013
IPO expenses of $1.9 millions recorded in the income statement in FY2012.
Net profit after tax would still have increased by 33.6% year-on-year as compare to revenue growth of 14.6%
The CEO said CORDLIFE oversea cord blood and cord tissue banking bussiness in India, Phillippines, Hong Kong ^ Indonesia is now well positioned to capitalise on the tremendious opportunities in these economise diven by rising affluence of the middle-class.
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