Appreciation Journal :13th - 14th Nov 2019
What transpired in the last two days was just sensationally synchronistic! It actually began the evening of the 12th, when I just happened to casually check on the stock chart of Nishishiba Electric (6591 - 西芝電機) a stock I bought in June 2018 because it was cheap relative to its NTA and the Japanese stockmarket seemed to still be in a bullish upward trend back then. It went nowhere and within weeks started declining in the face of global jitters over the Federal Reserve interest rate hikes & visited a 6-year low of ¥97, a nearly 50% paper loss on my stock position.
Nevertheless, I ignored the paper loss and just gamely hung on since my investment was just over $5,200 which was a paltry sum to me!
The price had risen relentlessly from a low of ¥120 in August till it was almost breakeven and I had toyed with the idea for some weeks of selling for a small profit/loss.
When I checked two evenings ago, I was pleasantly shocked to see that the stock had closed at limit-up to ¥220! If I had checked a few hours earlier, it would have been very likely that I would have rushed to sell for what would have been a ¥42,200 gross gain. However, my hopes soared that I could get an even bigger profit and so I busily checked Japanese news sites for the reason, and it turned out that parent Toshiba Inc ( whose large shareholding was one of the causes of my buying my stake in the first place ) was 'eliminating the parent-subsidiary relationship' (i.e privatising the co.) under pressure from its own shareholders.
In the morning, I called my broker as early as I could, but because there was an hour lag between the Japanese open & the local one, the highs of ¥280 - ¥285 was old news by the time my order was forwarded through the wires and the price sank rapidly to a morning low of ¥238 before rebounding sharply to ¥257 at the lunch break. I modified part of my order twice, first to ¥272 and then to ¥258 for the afternoon session. An hour later, I found out the good news that my partial sale was executed at ¥264 but on checking at an internet cafe, I discovered that the stock had rebounded to ¥276 and was then halted again! My original instruction was to sell the balance of my shares at a limit of ¥248 and as I kept refreshing the quotes from Yahoo! Japan, the stock price did not change and I was resigned to accepting that the stock was suspended for the day & that I had to incur another commission selling the balance the next day.
However, just before I logged out & walked home, the price refreshed to ¥300,the limit-up price for the day, but the volume did not change and so I was left in suspense as to whether the balance of my shares had been sold.
I went home, logged on to my home computer, and the latest quote showed the volume to be 7,585,000 shares, up from 6,933,300 when I last checked. Sure enough, an e-mail from my broker confirming the sale of the balance of my stock at the limit-up price of ¥300 sat in my mailbox and I was feeling mixed because the announced tender offer price from Toshiba Inc was as yet unknown to me, or to anyone in Japan outside of the board meeting of said company.
Checking a Japanese stock bulletin board on Yahoo! Japan, I soon discovered that the final offer was only ¥240!
JOY OH JOY!!!
The net gain of $3,261 (¥ 86,425) is the largest stock gain I have earned since Feb 9th 2018, on top of being the LARGEST Japanese stock profit thus far! I am milking my thankfulness for this sheer good fortune & immaculate timing for as looooooong as I can!!!
On the other hand, the unfortunates who bought 652,200 shares at the 300 yen close yesterday are collectively sitting on a loss of over $1,400,000! In other words, the 2nd arm of the double joy of the episode was my avoiding a 'loss' of $1,151 in profit + commission had I been forced to sell the balance of my holdings in Nishishiba the next day!
Nevertheless, I ignored the paper loss and just gamely hung on since my investment was just over $5,200 which was a paltry sum to me!
The price had risen relentlessly from a low of ¥120 in August till it was almost breakeven and I had toyed with the idea for some weeks of selling for a small profit/loss.
When I checked two evenings ago, I was pleasantly shocked to see that the stock had closed at limit-up to ¥220! If I had checked a few hours earlier, it would have been very likely that I would have rushed to sell for what would have been a ¥42,200 gross gain. However, my hopes soared that I could get an even bigger profit and so I busily checked Japanese news sites for the reason, and it turned out that parent Toshiba Inc ( whose large shareholding was one of the causes of my buying my stake in the first place ) was 'eliminating the parent-subsidiary relationship' (i.e privatising the co.) under pressure from its own shareholders.
In the morning, I called my broker as early as I could, but because there was an hour lag between the Japanese open & the local one, the highs of ¥280 - ¥285 was old news by the time my order was forwarded through the wires and the price sank rapidly to a morning low of ¥238 before rebounding sharply to ¥257 at the lunch break. I modified part of my order twice, first to ¥272 and then to ¥258 for the afternoon session. An hour later, I found out the good news that my partial sale was executed at ¥264 but on checking at an internet cafe, I discovered that the stock had rebounded to ¥276 and was then halted again! My original instruction was to sell the balance of my shares at a limit of ¥248 and as I kept refreshing the quotes from Yahoo! Japan, the stock price did not change and I was resigned to accepting that the stock was suspended for the day & that I had to incur another commission selling the balance the next day.
However, just before I logged out & walked home, the price refreshed to ¥300,the limit-up price for the day, but the volume did not change and so I was left in suspense as to whether the balance of my shares had been sold.
I went home, logged on to my home computer, and the latest quote showed the volume to be 7,585,000 shares, up from 6,933,300 when I last checked. Sure enough, an e-mail from my broker confirming the sale of the balance of my stock at the limit-up price of ¥300 sat in my mailbox and I was feeling mixed because the announced tender offer price from Toshiba Inc was as yet unknown to me, or to anyone in Japan outside of the board meeting of said company.
Checking a Japanese stock bulletin board on Yahoo! Japan, I soon discovered that the final offer was only ¥240!
JOY OH JOY!!!
The net gain of $3,261 (¥ 86,425) is the largest stock gain I have earned since Feb 9th 2018, on top of being the LARGEST Japanese stock profit thus far! I am milking my thankfulness for this sheer good fortune & immaculate timing for as looooooong as I can!!!
On the other hand, the unfortunates who bought 652,200 shares at the 300 yen close yesterday are collectively sitting on a loss of over $1,400,000! In other words, the 2nd arm of the double joy of the episode was my avoiding a 'loss' of $1,151 in profit + commission had I been forced to sell the balance of my holdings in Nishishiba the next day!
posted by DP at
11:14 PM
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