Different people different needs so...
Anyway wanted to highlight a different point today.
So... I haven't looked at stocks for a while. Like I have my own investment style so... sometimes I look at them, sometimes I leave them for months without looking at them. Whatever.
I used to own these 3 stocks. And now they are doing poorly.
SPH - This stock used to be the baby for retirees. A nice stable stock which gives 5% dividend. It used to be trading at around $4 or so. Now it has dropped to around $2.60. It's a sad case that they didn't adapt and move on with the times. Or maybe they just couldn't. I reckon most semi-government controlled companies have this issue, cos they are run mainly by the scholars. Anyway, I don't think it's a baby for retirees anymore.
Sabana REIT - This REIT used to be giving great dividends, 7-9% depending on when you bought it. It traded at $1.20 or so for sometime. It's now $0.47. Problems started showing when the management didn't or couldn't renew the master leases properly, then with the large supply of industrial space available, they couldn't retain their dividend rates.
Rickmers Maritime - A really sad stock. Another dividend spinner at 10% or so. Used to be trading around $0.30... now.... delisted. Last price I saw was around $0.05. It was really doing well for a time. This company leases container ships, sometime like a REIT for ships. The news covered it saying how brilliant it was. How they obtained long term leases on the ships during the good years, and during the bad years, they managed to retain their great cashflow cos other shipping companies were leasing out at current low rates and they were still getting paid super high rates. Well... time caught up with them. The leases with high rates all expired and they were left with having to renew the leases are very low rates. Eventually, they had debt issues and had to cap the dividends. Couldn't turn the ship around and eventually delisted/liquidated.
Ok I don't do much analysis in my investment strategy. Certain things concern me, certain things don't. I do what I think is sufficient for me to sleep well at night. Anyway, today's post isn't about what I invested in or how much I made or lost.
The point of today's post is very much about paying attention to your investments.
They may be stable stocks or good money spinners at times, but things may change. Management may change, overall economic conditions may change, contracts may end, etc. Gotta know when the tides are turning.
Being a shareholder is really very much like being a business owner. If you own a business, you buy stuff to sell. You would notice what is sell-able or inventory that are moving slowly and don't get more of those stuff. What is in fashion, what is out of fashion, etc. Gotta be aware of such things.
It's very similar for your investments. So don't be complacent. Just cos it gives a good dividend for a point in time, doesn't mean it will last forever.
Have a good day folks
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