An individual investor who invested in KOSDAQ-listed Shinwon Construction sold all of the investor's equity and filed a disclosure report, drawing attention among investors. Among individual investors, there is a joking saying, "Keep averaging down and you'll become a major shareholder," and that is exactly what happened.
After the disclosure was released that day, Shinwon Construction's share price expanded its gains and hit the upper limit (the daily price rise limit). As of 3 p.m. that day, Shinwon Construction was trading at 3,835 won, up 30.00% (885 won) from the previous session.
According to the Financial Supervisory Service's electronic disclosure system that day, a "Report on large holdings of stocks, etc." was filed by Kim Seung-hyeon, who held 7.4% equity (867,554 shares) in Shinwon Construction. Kim sold all existing equity and wrote as the reason for the equity change, "Averaged down and saw the equity disclosure, got back to break-even and escaped."
Kim, who said Kim is an office worker born in 1971, first filed an equity disclosure on Sept. 25. At the time, Kim disclosed holding 584,920 shares in the company for simple investment purposes. The acquisition unit price when the shares were first bought was 2,665 won.
The equity disclosure came out two more times afterward. Between October and November, Kim additionally bought equity multiple times in the open market, and the acquisition unit price kept falling from the 2,700-won range to the 2,400-won range. With the additional purchases, Kim's equity holdings rose to 867,554 shares (7.4%).
Meanwhile, as small and mid-cap construction stocks surged recently and Shinwon Construction's stock price rose, Kim moved to sell the equity holdings. Starting in November, Kim sold shares multiple times, at disposal prices ranging from 2,574 won to 3,590 won.
Through the disclosure, Kim wrote, "I kept averaging down and, well… ended up even filing an equity disclosure," and added, "It seemed like the big players couldn't come in because they expected I would dump my sell orders, so wiping away my tears and sniffling, I'm taking exactly my principal and making a graceful exit."
Kim also wrote, "Shinwon Construction is a good stock. I think a fair price of at least 10,000 won is the decent thing," and added, "I'm going to tidy up some loans and come back. I'm not running away."