Accept Offer @ $0.138
This is one of my longest held stock… since '00. No, it's not a Long Term Value stock but rather, it'd dropped till I won't even be able to pay the min. $25 comms if I were to sell it!
It must have been the tail end of the dot.com boom (ITG = Internet Technologies Group) when I was offered Placement Shares from my remisier.. but was only alloted 1 lot @ $0.65. I placed my faith in Mr Koh Boon Hwee, who was working for the Wuthelum Group (Goh Cheng Liang family – more well known to most is one of their asset, 'Liang Court').
What happend next was the bursting of the dot.com boom… Prices plunged… There was even a 5-to-1 consolidation subsequently… Yes, the 65ct one lot became 200 shares.. So, double whammy, troublesome to sell odd lots plus below $25 min. comms.
Lessons Learnt
- Invest only in what you know ie. within own core competence. Don't ride on big names like Mr Koh or the Goh family. They will definitely have their own interest as priority ie. Make $$ for themselves. When there're high risks, that's when they're willing to share with us. So, for eg., today, ITG has morphed into a Property biz with assets in China. From what I'd read in the forum, the worst is over (for this morphing process) and now, this delisting offer (the Gohs are going to enjoy the fruits by themselves ; Mr Koh has left long ago… yup, he knows how to take care of himself..).
- When the remisier offers Placement Shares, that ought to be a warning sign that it's not feasible for even stagging.. ie. not a hot IPO… 😀
There were a few Div / Capital Payout along the way but the losses was still huge.. Fortunately, not a lot of $$ was invested…