Trade Alert - Back to the Future #1.1: First Service Holding (FSH)
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Trade Alert - Back to the Future #1.1: First Service Holding (FSH)
Life is like a box of chocolate... and it is really tasty!
This is really like Déjà vu again and again and again!
The following graph came out in my first article in July 2021 where I ponder if FSH is giving a second chance to bite the apple.
I bought the shares in FSH at an average price of around HKD 0.80.
Then FSH got suspended (for a very long time) pending the finalisation of their sale process to Sunac Services Holding at HKD 2.617.
As I awaited with bated breath, I lamented on the unnecessary risk which I had undertaken (Evergrande is already in trouble then…).
When the FSH got back to trading, I immediately sold at HKD 1.95 and heaved a sigh of relief that everything turn out fine for my subscribers and I.
Then 11 days ago, I got back into FSH at HKD 0.6985.
If you look at the chart for the last 5 days, the return has been 69.01%!
Michael (one of the subscriber to the newsletter) in our chat about FSH wrote “don’t look a gift horse in the mouth”.
This is the first time I came across that phrase and I need to google a bit to understand more.
To understand this idiom, we must understand a bit about horse's teeth. They grow over time. So, checking the length of the teeth is a way of knowing the horse's age. Although I have never given or received a horse, I'm guessing a young horse makes a better gift than an old one.
I tend to agree with that philosophy, thou there are gifts that are not always welcome.
I have no idea what rumours are swirling around FSH (not privy to any insider news) but it looks like some form of M&A activity again…
I am halving my position which I took up 11 days ago as it is time to de-risk the position.
If you are interested in my journey for FSH, do read my previous article.
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