Wilmar: Bought at $3.28.

I bought shares of Wilmar's towards the end of the day at $3.28 a share as I observed what I thought to be weaker selling pressure on the part of Mr. Market. There seems to be a reluctance to sell at lower prices and we see hints of this in the chart.

We see the MACD higher as share price made a lower low.

This suggests that negative momentum has weakened. The CMF, a momentum oscillator that measures money flow, is also encouraging as it has moved into positive territory.

The candlestick formed today resembles a hammer and this is a bullish reversal signal. Of course, it needs confirmation in the next session.

In case of a continuing decline in share price, I see the next support level at $3.23.

Soup Restaurant: Almost fully divested.

Soup Restaurant's share price has been bumped up by the special dividend declared recently. This is good news for shareholders, whether they were hoping for capital appreciation or to collect more dividend.

However, once the counter goes XD on 7th May, we could see share price weakening significantly if Mr. Market wakes up to the fact that this stock has become relatively expensive with EPS being much lower without contributions from Dian Xiao Er.

So, bearing in mind my motivation for being vested in Soup Restaurant in the first instance, divesting my stake now makes sense as the difference between the sell price and my buy price is more than the dividend of 1.15c to be paid out. Add the two rounds of dividends I received before, the ROI over the last one year looks pretty decent.

I now retain a very small long position which is, in essence, free of cost. This means that I get to keep my shareholder's card and I will still get a 15% discount at all Soup Restaurant outlets. After all, I still visit them regularly since I like the food they serve.

Have my soup and drink it as well? Why not?

Related posts:
1. Soup Restaurant: Special dividend declared.
2. Soup Restaurant: Gain of $7.7m.
3. Tea with AK71: Soup Restaurant's S-Card.