Grab Journey: Q1 2023

I am writing this article prior to $Grab Holdings(GRAB)$ earnings report on 18 May. It has been a roller coaster ride as the price dived from $3.80 during my accumulation of Grab shares. This is a quarterly report of my journey.

I remember then in early Jan 23, thinking that Grab would constantly remain over $3.50. Over the course of the quarter, I always thought that Grab was starting to get recognized, even though it had yet to achieve overall profitability and was still suffering a loss of around $300 million. Alas I was wrong, as the price nose dived to around $2.60-70 last month. Normally, I would buy more but I didn't have the heart to, especially with the worry that it would go down further to $2.13 like last year.

Thinking back, I have learnt not to stray to far from a stock's intrinsic value. In the first quarter, thinking that it would hit $4, I bought the shares from prices of $3.90, $3.85, $3.50, $3.45, all the way to $3.29. I stopped after the price continued to dive. I suffered a 4 figure loss and did not spend more after that. I realised that I had forgotten to be patient, having thought that as the company had moved its break-even target by a year, investors would jump on it. I remember vividly when it's finance officer sold his shares at $3.17 for "tax purposes". Prices tanked (who wouldn't sell if the Chief Financial Officer sells?). Frustration grew as I lost sight of why I thought Grab had a chance (read my previous article for that).

This week however, Grab has been on the rise, hitting a high of $3.40, the highest in this 2-3 months. While I'm glad I held on and I believe the price will rise further, I sold off some of my shares to reduce risk. This is to allow me some leeway to buy more shares to DCA to it's intrinsic value. The shares are currently at $3.31. I am ready for it to go either way. More importantly, I am learning to be a bit more patient, to wait for the right price. 

I believe Grab will hit its target this year. However, I am now mindful that I need to buy it at the right price to fully take advantage of it's growth potential. I'll update you again at the end of this trip.


@TigerStars  

# 💰 Stocks to watch today?(14 Jun)

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Report

Comment10

  • Top
  • Latest
  • amroui
    ·2023-05-12
    TOP
    Can also consider short selling Puts as a way to add to your position. I’ve done so twice, and my criteria is Put contracts that are about 6months or more away at a price which i feel is fair value ($3 for my first one, $3.50 for my second).


    For my first one, it closed when the price dipped below $3. Including the amount gained from selling the contract, my net price for getting the units was about $2.31, which was still below the price at the time.


    My second contract is still open, but if it closes above the contract price i.e. out of the money, i would still have gained the amount from having shorted the contract.


    I think this strategy works for me because I believe in Grab’s potential to grow and being undervalued by the market. Rather than adding to my position in real time, by shorting, I’m trying to unlock value from the stock’s price ~6 months down the road.
    Reply
    Report
    Fold Replies
    • amrouiReplying toJo Tan
      [Victory][Victory]
      2023-05-18
      Reply
      Report
    • Jo Tan
      thanks bro. I know you are right.
      2023-05-18
      Reply
      Report
  • Lionel8383
    ·2023-05-09
    TOP
    Its quite normal to suffer a huge temporary loss. My position in Meta also was down by around $1k usd when it hit the October low, and I didnt dare to buy at the bottom. However I did add some shares as it picked up, and now its in the green again.
    Reply
    Report
  • Ericdao
    ·2023-05-09
    TOP
    It's a long term investment. 2.30 is the floor n 3.90 is the resistance. Good for keeping if u don't mind holding it for long.
    Reply
    Report
  • Hzrk
    ·2023-05-09

    Great ariticle, would you like to share it?

    Reply
    Report
  • mavis88
    ·2023-05-09
    thanks for sharing
    Reply
    Report
  • leankhin
    ·2023-05-11
    thanks
    Reply
    Report
  • enforcer
    ·2023-05-09
    ok
    Reply
    Report
  • jennyvu
    ·2023-05-09
    😊
    Reply
    Report