Sold DBS and want to buy back.

After re-sharing on Facebook that I was buying mostly DBS shares in 1H 2016,

Reader:
I saw your FB posts on DBS. Thanks for sharing again. I did buy some DBS shares after attending one of your talks last year. I made a bit of money. Been waiting for the price to drop. My broker told me it will go up higher. Should I buy back?





AK:
I wonder what did your broker tell you about DBS last year? Just curious.

Since you attended "Evening with AK and friends" last year, you might remember that I explained buying into DBS then was buying in at a nice discount to NAV and also at a single digit PE ratio.

Many were worried about the bank's exposure to the troubled O&G sector and I explained that only about 6% of the bank's loan book was exposed to that sector. Even if they had to write off everything, however unlikely, we would still be buying at below its NAV back then.






There was a margin of safety, I felt.

I also pointed out that the bank's CEO, Piyush Gupta, was buying more DBS shares at $13+ a share. His purchase amounted to more than $2 million. That kind of insider buying has to be a vote of confidence. I couldn't ignore that.

He is not buying more now and I believe he has, instead, cashed in not too long ago.

Why did he sell? I don't know. You have to ask him.






Looking at the numbers now, DBS is trading way above its NAV and at a double digit PE ratio. Mind you, it does not mean that its share price cannot go higher from here.

However, DBS is just no longer the bargain that it was last year.

Reader was referring to these blogs I shared on FB earlier today:
1. Wait for big crash to pick durians.
2. 2016 FY passive income (non-REITs).

Wait for a big crash to pick our durians?

Reader:
You have been through the times when you got stocks w div yield of 10+ or even 20%..

Why are you still keen to pick up stocks at 3-5% now?

Isn't it easier (and less work) to just wait out for the next crash to pick your durians again?

It shouldn't be too long from now right...?

Now, this was a CRASH!
Did anyone predict this?
This is what insurance is for.
It is for if a CRASH happens.
Our war chest is an insurance!

..




..

AK:
I cannot predict what will happen. 😞

Some people have been waiting for years for a big crash.

I will keep investing but keep a war chest ready. 

There will always be opportunities, bear market or not.

Just have to be careful so that I don't get killed by falling durians. 😛





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Make $1 million investing for income.