Wheelock Properties CEO Mr David Lawrence apologised to his shareholders at AGM for having bought a 10% stake in SC Global in June 2007 at $6 per share.
SC Global has since done a two-for-one stock split and the counter closed at 39cts yesterday. Based on my back-of-envelope calculation, this represents a 87% decline in total investment value of $112mio.
This admission of judgement error affirms my view back in 2007 that it was a wrong move by Old Wheelock to have invested. But it was certaintly an excellent piece of business done by Young Simon Cheong to have cashed out at that time.
http://investingwithedgar.blogspot.com/2007/10/merrill-lynch-recommends-sc-global.html
While Old Wheelock said he had made mistake in the past cycle, let us see how he can recover from this one.
A saving grace for Mr Lawrence is that he has done more good than bad for Wheelock. He should be commended for having the guts to admit error.
1 comment:
ST Nov 15, 2008
Wheelock takes $85mio impairment loss on SC Global given their current 16.05% stake.
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