Tuesday, October 24, 2017

Closed my position In Retail Holdings (RHDGF)

I closed the position in this stock. If you recall the reason I bought it was that the total of the company holdings was far less than the share price. The management had been focused on selling off assets, which consisted in holdings of shares of various consumer retailers in India, Sri Lanka, and Bangladesh.

The management was consistent in paying out dividends and buying back stock to close the undervaluation gap. The gap is pretty much closed and the company is planning a big dividend payout early next year.

The stock has risen to account for this and so I see very little upside in the stock and have decided to move on. This was around a 30% gainer for me over a 8 month period.

I got this idea from one of the other blogs I follow and this is an example of using someone elses discovery and analysis for my profit.

1 comment:

Sail Bay Home Home said...

Not sure a wise move. You sold before receiving $10 in dividends plus anoth $18-$22 in market value.

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