Sarine Technologies: A turn for the better?

I have been cruising in a low gear when it comes to my investment so far. But every once in a while I will do some short-term investments.

Sarine Technologies

I recently bought more shares of Sarine Technologies. The recent news pertaining to the company has been positive and this is reflected in its share price. After stagnating at the lower prices since early Oct 2017, the price has in recent times shown a strong rebound.

That is the thing about Sarine Tech (typically low volume but high volatility). I have previously written a post about Sarine Tech in Oct 2017 (read here).

Somehow, over the years, I have kind of have this thinking about some of the stocks in my portfolio. There are stocks who basically don’t have much volatility… not in a bad way. Overall the share price trend is still up (kind of like Fu Shou Yuan, Vicom, Riverstone, Colex…). But In the case of Sarine Tech, it is a roller coaster. I can take it as a bad thing or take it as a good thing… Bad as in, it often gives me ‘heart palpitation’, good as in I can scoop up more shares when it drops. There are always opportunities – because the news surrounding the industry is very unpredictable.

• Christmas Special: Sarine Technologies – Will This Hidden Gem Shine Again? (read here)

Nevertheless, fundamentally the company has a good balance sheet and proactive management. So I am not too worried about the company riding out the macro environment issues. Funny, it is often the company itself who announce the bad news (before the official results release)… they are pretty upfront if the impending quarter financial results are going to bad.

It is just how patient I need to be. And I did mention that once there is good news, the stock will rally hard.

• Record Number of Over 10 Million Rough Diamonds Scanned by Sarine Galaxy® Systems in 2017 (read here)
• Sarine to sue overseas manufacturer for fraudulent misuse of Galaxy system (read here)

Sarine Tech appears to be doing well on both fronts: The performance of the business of Sarine Tech and the issue on the illicit operations of parties infringing on their intellectual properties. The results may not be immediately apparent in their financials… but we will see.

However, there is one issue which I think is not yet resolved: The diamond retail industry experienced a glut of polished diamonds in 3Q2017, which could be due to the “weaker market conditions”. Hopefully,  the festive demand to lap up excess inventory by early this year.

• Unexpected industry glut impacts Sarine on top of illicit competition (read here)