Sunday, August 14, 2016

Lesson learnt when FIFO on Vicom Limited

Vicom announced its Q2 result on 10 Aug 2016.
The result was announced after market closed and the share price closed at $5.91.
As expected, revenue dropped.
Unexpected is dividend also dropped.

I had added 2,700 shares of Vicom @ $5.75 in 30th Jun for FIFO purposes - Read here
Given that a lower dividend ($0.08) was declared, I am thinking the share price might drop when market open tomorrow.
Therefore, I went to place a sell order of 2,700 shares @ $5.88 (Target profit $0.13 instead of the dividend $0.08).

On 11 Aug morning, only 300 shares was done @ $5.88, pending 2,400 shares to be sold. I forgotten that Vicom usual daily volume was not high in the first place. Therefore I started to panic as I do not want to pay nearly $30 for the broker fees just for 300 shares. I went in to adjust my sell price 2 times in order to ensure all my 2,700 shares can be done by today. In the end, my average sell price was $5.83 (Profit $0.08/shares) and I accounted for 1/4 of the total Vicom volume for that day.

To FIFO, one have to note on the daily volume too.

Lesson learnt.



6 comments:

  1. Wah you fifo on Vicom, not many i heard doing that on this company.

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    Replies
    1. Yes, i guess they knew of the low daily volume..

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  2. overall disappointing quarter but the share price is holding. strange.

    ReplyDelete
    Replies
    1. Haha.. Well, i guess low daily volume helps to 'support' the share price... During Jan/Feb period, the movement was not much when the STI dropped till around 2500 range too..

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  3. Hey, I think this blog post may provide certain insights on Vicom.

    http://www.bytesizedinvestments.com/why-did-vicoms-2nd-quarters-net-profit-dropped/

    ReplyDelete