Pacific Basin 2343

Today the price of Pacific Basin went up to $6.3, which will give me a return of 6.3-5.35 = 0.95 or a ROI of 17% if I sell the stock today. Which is ROI of 17% in 2 weeks time. It is a very good profit. But I didn't sell my stock. My mind is telling me to sell it now and get the fast return which a quite a good profit. However I keep reminding myself that I am a Investor not a Trader. If I am a trader, I will definitely close my position. As an Investor, I buy the company share because I want to own part of the company. And I will hold onto it until it reach my target of $15.35 which might take 1-2 year or even more. Also the company is going to announce its 2009 annual result on the beginning of March 2010. My opinion is it will be a good result which I base my opinion on 1) the BDI index which had continue to be strong on the 2nd half of 2009 and also the high contract coverage with more than 90% for the year 2009. And for people with shorter time frame, I will suggest hold the stock until it announce it result. Another advantage as a investor is I also enjoy receiving dividend from this company. The dividend policy of this company is a payout ratio of 50%, which means they will give me 50% of there net profit. So the more profitable the company, the bigger my dividend payment.


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