Wednesday, July 3, 2013

When is the time to sell Noble and Wilmar?

Both Noble Group and Wilmar have touched the 20% loss threshold  that I would prescribe as a cut loss point. That would mean taking a hit of S$2,300 and add on to the string of losses. The sale would also free up about S$9,000 for me to play around with.

It is an agonising decision to make because at least 3-4 years back, both companies were the best stocks to have and helped investors make a lot of money during the run up in commodity prices. Noble Group is now faced with a succession issue and hard commodity prices have seen a slump in prices. Wilmar Group also faces a stockpile of crude palm oil and possible backlash over the recent haze furore.

Here is one scenario that stops me from selling: what if when we are in a full blown bull market and commodity stocks make a comeback? That would mean me losing out on a good deal now. the antidote to this thinking would be that if I were to cut loss now, the money could be used for a set of stocks that too could benefit from the upswing.

Then the new question arises: which stock? My colleague commented that I play very safe with money in the food stocks. I guess she is not wrong. Even then, not all food stocks are created the same. I guess I will have to do some research the coming weeks.


  1. Food related stocks have been performing quite well. Most of them are still expanding with profits increasing consistently. I'm looking into it too.

  2. they have been doing well but have been helped mainly by the fact that they are less liquid and gains in share prices occur much faster (vice versa)...