Sell @ $0.095 with odd lots @ $0.071
One of my legacy stock from 2000-03. Used to be called Mediastream and I'd bought some upon the strong recommendation of a a reservist friend who's a banker. He claims to know the majority controlling shareholder (George Thia) very well and rates him to be as astute a deal maker as Simon Cheong (SC Global). Guess what? IIRC, George Thia ended up in the losing end when he used the company to acquire money losing biz… Claims he was misled and ended up in court cases. Not once, but at least twice!
It subsequently went into JM (Judicial Management – Bankruptcy Protection) and after several attempts by the Judicial Manager, found a white knight (China company) which agreed on a reverse takeover. The company was renamed and the core biz in Membranes used for Water Filtration. There was a subsequent 10-for-1 Shares Consolidation (ended up with odd lots). Needless to say, I suffered huge losses. Fortunately, I was a much smaller player back then. Still, a few Grands…
On 19-Jan, the majority shareholders announced an agreement to place out 350Mil (13.13%) of their shares @ 10ct to another listed co., United Envirotech. Prior to that, I'd observe the share price rocketing above 10ct, ought to have sold then but got greedy. It subsequently dipped below 10ct after the deal was announced and was in recent times, trading closer to 9ct. Although the company is now a lot more profitable, my stake is now rather tiny and I have decided to cut it off from my portfolio. I have also not been following the biz very closely, perhaps too painful… haha…
Lesson Learnt back then… Do Your Own Homework! Don't throw in Good Money after Bad Money ie. Average Down Stocks with Poor Fundamentals… Cut Loss when Fundamentals is Confirmed to be Poor (Would have lost lesser $$)… 😀
Let's hope & pray I won't repeat such mistakes again as the stakes are now a lot higher! 😀