Following my purchase quite a few weeks back, I have decided to bite the bullet and cut my losses.
My divestment decision stems from the further revelations that the directors of Asiasons, Blumont, LionGold and perhaps even more counters, have likely been involved in upward pyramid buying. This is the process of using a small existing collateral to borrow and leverage higher sums, to buy even more of a stock and thereby driving its price higher and higher. It all works fine and dandy when the rest of the world jumps on the bandwagon, but once the house of cards crumble, there will be nothing left.
Previously when I did a quick analysis of Asiasons, my calculation came down to an NAV of about 5.8c. So that actually makes today's price of 11.3 c still over-inflated! But aside from feeling abit of heartache for not taking profit when the counter bounced up to 27c when the suspension was first lifted, I am not feeling too much pain from this divestment. In fact, it could be quite alot of money saved.