I thought I was Walking on Sunshine but I got Sunburnt instead.

I finally got rid of my largest stock position this week. Sadly, it was at a loss and a huge one. My average purchase price was $3.08 and I sold at $1.92.

Goodbye, M1

Liquidating my M1 holdings is a no-brainer in my opinion. The strategic review did not produce any

positive outcome. I had to do a strategic review on M1 myself.

I believe there will be more bloodshed among the telcos. The impending threat from TPG operating as the 4th telco and MyRepublic as a Mobile Virtual Network Operator spells trouble for the current mobile operators. There will also be bidding wars for the upcoming 5G bandwidth spectrum. More cash to be burnt building the next gen mobile network. With all that in mind, I do not see any turnaround story in the shortterm for M1. I expect the DPU to continue dropping.

Let's take a look at who has been selling M1 recently. I should have followed Karen when she sold M1 shares in June. In my opinion, if the Ceo or Managment has been selling their shares, we better watch out. M1 Ceo has been selling M1 shares every year for the past few years.

Screenshot from Spiking App

The technical chart also looks really bad. Look at that huge red candle when the price gapped down after announcement of the buyout failure. Institutions/retail investors are dumping the stock!

Screenshot from Chartnexus

I have removed this company from my watchlist. Although I am an M1 subscriber and satisfied with the services, I am unhappy with the company as a shareholder. Before we invest in a company that we are familiar with, we should also look at it's future prospects. Don't try to catch a falling knife when situations are not looking good for the company. A storm could be coming instead of sunshine. Do your own due diligence before investing.