Hyflux – a poor stock for me

When I bought Hyflux in 2008 at $2.90 per share, it was a growth company. Revenue jumped 187% from 2007. Earnings per share jumped 78%.

In 2010, Hyflux rewarded the shareholders with bonus shares at 1 bonus share for 2 shares held by investors. My holding of 2,000 shares became 3,000 shares at cost of $1.90 cost per share.

The share prices began to slide and to average down my cost per share, I bought additional 3,000 shares at cost of $0.85 in 2015 (last year).

To my dismay, the share price continued to decline. It was trading at about $0.50 recently. My cost per unit was $1.40 but at 50 cents, I lost $0.90 per share ($5,400 in total) on paper.

Why did I not sell off Hyflux? Firstly, Olivia Lum, Executive Chairman and Group CEO is still the largest shareholder holding 34% of its shares. It is in her interest to ensure that her investments hold up. Secondly, Hyflux is a pioneer in water treatment and desalination. It is known to the global community for its expertise.

Over 8 years, total dividends received were $772. This reduces my cost of investment to $1.27 per share. This did not offer any comfort because my investment in Hyflux lost 60 cents to a dollar.

So what went wrong? Not too pretty. In this case, I am not rewarded for being a loyal investor.

Copyright © 2016, limkimtong for Living Investment

The material presented is intended to be general and written in layman’s language as much as it is possible. The author shall not be liable for any direct or consequential loss arising from any use of material written. Please seek professional advice from your financial advisor or financial institutions on material written covering financial matters.

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One Response to Hyflux – a poor stock for me

  1. Green Ninja says:

    Thank you for your frank and open sharing. Nine blogs out of ten claim profits but never losses, giving a perception that investing is a no-lose proposition. This cannot be possible.

    Thanks for a dose of much needed reality.

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