SWKPLNT and KWANTAS - better quitting than waiting.

I am ashamed to divulge that I am still holding some dormant plantation stocks acquired way back in early 2008 well before the global financial meltdown in October of the same year. I bought them at ridiculously high price and as the stocks were then bullish, I decided to hold them longer. Then some Australian rating agency downgraded our plantation stocks and down they tumbled and have never really recovered since despite the good price palm oil is commanding now.

These "greenie" NGOs  are also persuading world MNCs not to buy palm oil produced by companies deemed to destroy "orang utan" habitat and forest as to contribute to climate change. So holding plantation stocks can be quite risky with these influential "green fanatics" around. Recently they are trying to persuade the people not to buy palm oil produced by trees planted in peat soil. Come to think of it many of the oil palm trees in Sarawak are planted in such soil. The more I want to quit the stock!

I am monitoring the stock prices and keeping an eye and an ear to all palm oil related news and development. The recent surge in price had encouraged me to sell off all my remaining MHC stocks and a third of my SWKPLNT holdings, both at a sizeable loss. I was averse at selling the KWANTAS shares as the price is now ridiculously low! I also sold off a quarter of my THPLNT shares which though low, the one to one bonus in early 2009 had made up for the loss. Thanks to THPLNT sensitive management! I am keeping UNICO though as it is always in investors' radar. I bought UNICO based on the rumour that it was going to be acquired by the giant IOI however the touted M&A never materialised . One consolation  is the fact  UNICO  gives good annual dividend though not as generous as THPLNT.

Now I am getting fed-up of waiting. After looking at the financial results of all the plantation stocks that I am holding, I have decided to quit SWKPLNT and the disappointing KWANTAS even at a big loss. Now why did I ever buy KWANTAS shares? Oh it is a long story and not worth relating. Fortunately, my quick portfolio restructuring  in early 2009 had, on paper, erased a great proportion of the loss. So I can now close my eye and say goodbye to these two stocks.

It is no longer a good strategy to buy and hold stocks like Warren Buffet used to do in this world which has multitude of interconnections. The business world has become globalized. No companies are spared from global economic effects as demonstrated by the US sub-prime crisis and subsequent financial upheaval in 2008. And recently the Euro zone debt woes has dragged down our technology stocks due to poor demand.

My main reason for finally quitting is because I need the fresh fund to acquire the MMHE IPO in October 2010. Wish me luck people.