$Soon Hock(SHE.SG)profits are heavily influenced by the completion and recognition of property development projects.

That means a strong year does not necessarily mean earnings will continue at the same level. Once a major project is completed and revenue is recognised, earnings can fall sharply while the company waits for the next project to contribute.This makes company’s profit less predictable than companies with recurring revenue.

This stock is considerably smaller and less liquid than names such as DBS, UOB or SGX.This means a relatively small amount of selling can move the share price significantly.It may be harder to exit a large position quickly.

while the share price can remain weak even without major negative news.

After this buying experience, I have learnt that’ Dividend shouldn't be the main reason to buy stock’ Especially for a property developer company, dividends can fluctuate depending on project cash flows,Development expenditure,Working-capital requirements and Management's capital allocation decisions.So investors shouldn't assume today's dividend level will necessarily continue indefinitely.

Moving forward I would be more cautious when investing in small-cap property developer, because its earnings and share price can be much more volatile than established Singapore blue chips.