Monday, November 14, 2016

Did you buy a Stinker? - A look at Yanlord Land Group

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Many investors cite Warren Buffet's saying of Be fearful when others are greedy and Be greedy when others are fearful.

I had posted about Yanlord last year.

The summary of the thesis was

"Chances are this will serve a position in the portfolio where are investing in a hated sector i.e. Property in China is being cooled, no point investing, so, you are taking a contrarian approach.

The bull thesis is that, all you need is for majority share shareholders to privatize this and pay out a small premium to traded price of say 20% and you have made your 20%.

One can take a patient approach and wait for the counter to hit 90 cents anytime from now till March 2016.

There is likely to be a run up in April or May 2016 at which time one has an exit price of say $1.2."

This was posted when Yanlord was at $1.

It dipped below $1 to the 0.98 level by January 2016.

I have highlighted the selling point above, anytime in April or May where one could have exited at 1.2.

All said, one would have reaped a cool 20% for a three - four month holding period.

Disclaimer :- 

I am not an investment professional.

I encourage you to do your own independent "due diligence" on any idea that I write about, because I could be and probably am wrong.

Nothing written here is an invitation to buy or sell any particular stock.

At most, I am handing out an educated guess as to what the markets may do.

The market will always find a new way to make a fool out of me (and maybe, even you!).

Even the best strategies of the past fail, sometimes spectacularly, when you least expect it.

I am not immune to that, so please understand that any past success of mine will probably be followed by failures

1 comment:

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