Today saw the price of Valuetronics plunged by 18%, from $0.90 to $0.74.
I last added shares of Valuetronics in June last year. With the favourable quarterly reports since then, its price has appreciated and there were few opportunities to add more. So I was excited when I saw the price dropping to $0.83 this afternoon, thinking that the sell-down was due to market sentiment in tech stocks. Was hesitating if I should add and finally decided to queue at $0.80 as that would have given me a yield of about 5.8% if the company is to pay out the same dividend as last year. At the back of my mind, I wasn’t expecting the order to be filled.
So was I surprised when I received a message of a filled order at 4:25 pm. And by the end of the day when I check again, it closed at $0.74. Immediate thought was sheesh, I should just queue at $0.78 for a 6% yield.
It is only later that I saw someone shared that Philips Lighting has reported a poorer Q1 earning and CEO attributed it to weak performance of its network LED lights. A-ha, that’s why the big reaction in the market. That’s probably going to affect Valuetronics Q4 results and coming quarters growth might be more tepid. However, I still think it’s going to continue to make good money with double digit growth in its ICE segment. So for the upcoming results, I expect the company to continue to payout the same amount of dividend. Will continue to hold on to my shares and wait for the its Q4 results to see the impact and outlook.
Note: 18% plunge is definitely painful but due to position sizing, this only resulted in my portfolio dropping less than 2%.