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Should I Sell to Realise 140% Gains?

I have been holding on to Riverstone for a pretty long while.
As the 'stars are aligned' recently due to 'an increase in glove sales volume, higher average selling prices and better profit margins from higher economies of scale and lower raw material prices', it is no wonder the share has been soaring sky-high since it plunged to rock-bottom at 0.73 on 19 March. The last close at 2.13 would net almost 200% gains.

I wasn't the lucky one to get that gain because I didn't buy anything from the stock market since it crashed till recently, but since I bought it at 0.88 cents a couple of years back, the rocket is bringing me a long-waited gain of around 140%. 

CGS-CIMB has revised the target price to 2.5, and the market seems to be optimistic towards that goal. There's still another 2 weeks before the dividend ex date, will the target price be met by then? In contrast to the unrealised gains, the MYR 0.0585 dividend isn't that attractive to me. Should I sell the share to net some gains? Or should I wait for it to rally a bit more? Or perhaps I should hold on to it because there is still room for a higher long-term appreciation?

When it comes to 'Buy' I am more decisive and have my own target price. No matter how the market movement is, if it doesn't meet a price I'm comfortable with, I'm fine with walking away from it. I believe that money not made is not money lost. Same goes with my idea of money not spent isn't money saved. 

However, when it comes to 'Sell', I'm a pathetic loser. I hoard and I get emotional. I have always been bad at exiting my position. There have been so many cases in different assets where the price goes up after I have sold the shares and that left me with regrets despite already making a tidy sum of profit.

'If I had hold on to it, I would have made more' 

Greed kicks in and it's difficult for me to think 'money not made is not money lost' in these situations. 

While rationality is important in investing, I can't help but be a walking contradiction surfing on the emotional waves when it comes to letting go.

I'm probably going to take another 2 weeks to decide, but I'm leaning on the holding for long term side because the Covid-19 is going to stick around for a while more, and this company really has good fundamentals.

It's also easier for me to hold on to it than to let it go.

Have you encountered a similar dilemma? Have you regretted not selling later to earn more profit? Or have you missed the peak to sell and settle for something lesser? How do you make up your mind to sell a share? Please share your thoughts with me and many thanks for reading.

Comments

  1. PlayBoyJohnyMay 26, 2020 at 5:50 PM

    sell a portion and let the reminder run

    ReplyDelete
    Replies
    1. GenevieveMay 27, 2020 at 8:59 PM

      It will work if I have a huge position, but I'm only holding a small quantity so it wouldn't be worth it :(

      Delete
  2. jovanMay 27, 2020 at 3:23 AM

    I have the same problem selling is hard. Although buying is not easy but at least if I compare the 2 it's alot easier. For me, what I did was to protect my capital meaning I sold shares that is equivalent to my initial capital and let the rest still be invested.
    This way, I feel that I will have a clearer mind but of course learning to sell earlier and later the price goes up again is another emotion we need to learn to deal with.
    I have not found my way but that's where we need to control and learn from it. Not an easy call but at least I have my capital back for future investment

    ReplyDelete
    Replies
    1. GenevieveMay 27, 2020 at 9:02 PM

      The concept of 'at least get my money back' is new to me. At least once we get back out capital, what every remains would be just gains, so we can decide how much gains we want to realise after that. I never thought of that so thanks for your advice :)

      Delete

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