Today I came across the news that Dutch tea and coffee company Jacobs Douwe Egberts (JDE) has made a S$1.45 billion all-cash offer for Singapore instant beverage maker Super Group Ltd. (read here and here).
On 2 Nov 2016, SSI has already hinted on the possibility of privatization due to the trading halt (read here).
Well, I have been holding on to Super Group shares since June 2014. And I have been purchasing its stocks on the way down. Come to think of it, it was only recently in Aug 2016 that bought some Super Group shares (read here).
Although I have technically not received the realized profits on the shares, it was nevertheless a good feeling to know that the value of the company is validated by an external party – Jacobs Douwe Egberts (JDE).
As mentioned by Super founder and managing director David Teo Kee Bock: “We are proud that JDE, the leading pure-play consumer packaged goods coffee company in the world, recognizes the strength, depth, and breadth of the company that we have so laboriously worked to build over the past 29 years. As the company enters its 30th year, we are pleased that Super will be part of the JDE Group as we continue to build on the legacy we have established.”
Holding Super Group Stocks wasn’t the most enjoyable ‘ride’ ever. And to continue buying on the way down is like catching a falling knife. Similarly, it wasn’t fun tracking their financial and business progress.
It wasn’t so long ago (in Aug 2016) that the following was reported that Super Group registered the biggest drop among the top 10 F&B players in Singapore (read here).Among the top 10, Super Group Ltd. registered the biggest decline at -5.3%.
With the sudden increase in the share price of Super Group, my overall shares portfolio is again in the black (+4%). And that is excluding the profits I have obtained from the delisting of Nirvana Asia, Lyxor Japan ETF (and losses from SMRT delisting).
Nevertheless, with the sudden increase in Share price of Super Group – it is back to looking for other undervalued stocks.