My initial thinking was what you outlined, but I should look at writting out my own '10 not so stringent commandments for investing'.
Appreciate your feedback.
Ok, 90% invested in one company puts some perspective on your comments! I think I would agree there is a lesson to be learnt there, although if you were certain enough of something then it might be a single path to great wealth creation!!
So far I have only averaged down where I was convinced the business was investible when I made the initial entry, and where I considered the drop in price was an over-reaction to changed circumstances. (my involvement in the CR for SGH was an exception.) I have done very well out of averaging down into businesses like NWH & CDA. I guess there might come a point where I felt I was over invested if the price recovered strongly and made the business a big % of my portfolio - but it would be very dependent on my analysis of the business, size of the position alone wouldnt make me sell down.
CCP, UOS and DDR have become much bigger positions than my average, but I have no interest in selling down to reduce size. (and they are not businesses I averaged down into, just businesses I accumulated where ever Mr Market priced them lower than I valued them and I had capital available.)
Where I have resized the position I did so because I wanted to free up capital for another opportunity.
Lesson learned well to a certain extent, that I should have a certain amount of capital allocated and not go beyond that point.
I guess theres no science to averaging down, just whatever you feel comfortable with, yet this pushed my comfort levels.
Thought / feedback on how you Galumay and contrarian deal with averaging down would be appreciated.
It might even get to $3 yet..from a quick glance....time will tell though..!!
Vocus wouldn't want to announce a downgrade or there'll be a class action discussed.
It's in the top 1% of shorted stocks and had a 4 fold increase in volume the past 4 days.
Vocus wouldn't want to announce a downgrade or there'll be a class action discussed.
It's in the top 1% of shorted stocks and had a 4 fold increase in volume the past 4 days.
Iprimus and Dodo are both resellers of mobile phone plans.Does this really affect VOC though as they aren't in this space?
Iprimus and Dodo are both resellers of mobile phone plans.
Also don't forget the SuperLoop (SLC) acquisition last week. The bit about the submarine cable is a potential competitive issue for VOC.
The news about TPG and their mobile network was well known prior to the official release so not sure how much impact the release of the 'news' really had. I think the negative sentiment around telcos generally is pretty strong, I took a position in VOC at the low 4's and am not surprised its fallen further. It will take a couple of positive reporting sessions to see a real turn around IMO.
I think the market wasn't sure if TPM was going to bid... and certainly wasn't sure that TPM was going to win the spectrum auction. Mobile's big profit pool is about to be carved out by a 4th player and margin eroded by price competition.
...
Dealing every day with the structural dysfunction and incompetence of TLS and TPG makes me think there is plenty more bad news for the major telcos in the future!
I still don't understand the real effects on a reseller though? Don't TPG already offer mobile?
Hi TriatheleteI have updated my Vocus chart based also on the latest Fundamentals from Lincoln stock doctor just downgraded...www.lincolnindicators.com.au............. 14 day free tral
Strategic comment.
Last updated: 13 April 2017
VOC is no longer a Borderline Star Growth Stock following a recent discussion with the company.
Following that discussion we are now of the opinion that they will not achieve the hurdles set for outlook and forecast when they next report. As previously commentated, VOC needed a lot to work perfectly, and though not a Star Growth Stock, we are disappointed with this outcome. The complexity and number of acquisitions unfortunately will now mean they are unlikely to meet our metrics within the next 12 months.
Weekly Chart:
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