underweight wrote:Hi wazuans. Am thinking of exiting KQ today at 40 (bought at 32.5-32.75 on 7th Apr) n buy either KenyaRe or KenolKobil. Wat is your take on this? Cheers!
I can't help you here. Like @vvs and WB I am a long term investor. I don't like making money for brokers. Out of the 17.5% you'll make, the broker will chew approx. 4%. On the hand, speculators will tell you 13.5% is not bad in a month. Actually, it is not bad if you can replicate it every month. I would be happy to do 13.5% a month consistently. The problem with speculation is making 13.5%, losing 14%, making 11%, losing 10%,... In the final analysis it becomes a zero sum game.
There are some questions you need to ask yourself:
Are you an investor or a speculator? Why did you buy KQ? Are those reasons still valid? Why do you want to buy KenyaRe/Kenokobil? From your analysis, are they likely to outperform KQ in the time span you are planning to hold them? If yes, by how much? etc. etc.
Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.