Recently, there are a few of Nextnat (nX) shareholders are complaining about the weak performance of it's stock price. It closed at RM0.305 last friday (note: the price is adjusted after bonus issue [1:2]). This translates to the closing price of about RM0.46 prior to the bonus issue.
I tend not to write anything about the technique, skill, plan or any know how. This is because I believe everyone has their own way and belief. This only important point is to gain and win money from the stock market.
However, I would like to take this oppurtunity to write something about what I had read in a book about the greatest investor - Warren Buffett. According to the book, investors should not sell or dispose even though the price has dropped 50% from the purchase price. Investors should see the situation as the chance to accumulate more units at cheap/lower price. Of course, this is provided that you have picked up a good counter.
This makes sense to me if you have the holding power. For example, if you bought Genting @ RM20+ before the financial crisis and sold it @ RM10+. Then, you have lost almost 50% of your money. If you hold it and sell it today, I am sure you have made a very good profit as it touched RM40 this year. Furthermore, you will be able to gain more if you bought more @ RM10+.
In the other hand, if you bought a speculation counter or a counter without financial performance support, such as PSCI, Fountain and Karensoft, you should take necessary to cut loss as soon as you can.
In nX case, I do not see any bad or negetive development in the company at the moment. So, I think it is not necessary to dispose nX now. Of course, if you know something else out there which can give you better return, you may go ahead to dispose nX.
Personally, I would see this is a good oppurtunity for me to buy more. Cretainly, I hope there is nothing wrong with their high balances of Trade Receivables and Trade Paybles.
