Hi Folks, welcome back to Investment Income
for Life! In an earlier post titled “The Battery KingStumbles-CATL (3750.HK) Down 57% From Its Peak: Bargain or Falling Knife?”, I had
shared my analysis of Contemporary Amperex Technology (CATL) listed on HKEX. Towards the 3rd week of October 2026, I had taken up a small position of 100 shares at HKD 337, for a total
outlay of HKD 33,758.71 (including fees) while waiting for its price to plunge
further and also other business indicators such as net profit margin to stabilize.
I was planning to take up a substantial purchase should it plunge further. However,
this anticipated huge decline in CATL prices did not materialize and surprisingly, it had
since rallied strongly from the trough within a 2 short weeks.
1. Taking Profit in the
Mini Rally
When HKEX tech stocks staged a mini rally, CATL ran up with them. I didn't overthink it. On 6 Nov 2026, I sold all 100 shares at HKD 395.6, receiving HKD 39,490.98 after fees.
When HKEX tech stocks staged a mini rally, CATL ran up with them. I didn't overthink it. On 6 Nov 2026, I sold all 100 shares at HKD 395.6, receiving HKD 39,490.98 after fees.
2. The Numbers
That works out to a net profit of HKD 5,732.27, or about 17% capital appreciation, in roughly two weeks. Not bad for a short holding period!
That works out to a net profit of HKD 5,732.27, or about 17% capital appreciation, in roughly two weeks. Not bad for a short holding period!
3. Back to the Excess
Cash Pot
The full proceeds have gone back into my excess cash pot. Sometimes, best not to be too greedy. Keeping dry powder ready means one can pounce when the next good opportunity comes along.
The full proceeds have gone back into my excess cash pot. Sometimes, best not to be too greedy. Keeping dry powder ready means one can pounce when the next good opportunity comes along.
Ok folks, that's all from me today. Happy Deepavali and enjoy this festive period with your loved ones!
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