Thursday, September 8, 2011

Sold Airasia and bought Oldtown

I just sold Airasia, basically took profit (made RM1,653.36) and bought 6,200 units of Oldtown.

Reason for doing so is that I have liked Oldtown in my previous writing. Now the price is below its IPO price of RM1.25 i.e. I bought at RM1.15 which is amazing as I get to buy much lower than the price I envisioned would have put my hands in - the latest quarterly report of 30 June 2011, I do not see any reasons for me to change my view on this coffee chain. It has built itself into a strong brand. Ironically I am selling a strong brand as well - Airasia.

Why I sold Airasia? If you previously read some of my blogs, while I like this airline, I could not comprehend the deal with MAS. Anything I am not very sure, well I do not like and this deal with MAS is big, although may benefit Airasia in the long run.

Anyway, Oldtown will bring much better cashflow than Airasia. Airasia is not a cashcow while Oldtown has a very good chance of building itself towards a cash cow. Hey! it just announced a 0.025 dividend - keep it up.

How does my investment position look like now?
Serious Investing!

No comments: