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I've been an investor (sort of) of WMI in the past (when the price was going up). It's been very disappointing in 2018. This chart shows WMI against the ASX Small Ords index (XSO). The XSO is making new highs while WMI goes sideways. I'm aware this comparison is not entirely fair (div's) but it does show that WMI is struggling.Like most funds, the managers struggle with selling their dogs. They buy into the bullish narrative and become emotionally tied to the company. They generally sell too late. [ATTACH=full]87850[/ATTACH]The chart also shows that WMI started at the same time as the bullish rally in the small cap sector. The challenge for the managers is realising some of their profits, selling the dogs and buying the next wave of small cap growth stocks. The opportunities in the ASX are too few. I think they'll struggle.
I've been an investor (sort of) of WMI in the past (when the price was going up). It's been very disappointing in 2018. This chart shows WMI against the ASX Small Ords index (XSO). The XSO is making new highs while WMI goes sideways. I'm aware this comparison is not entirely fair (div's) but it does show that WMI is struggling.
Like most funds, the managers struggle with selling their dogs. They buy into the bullish narrative and become emotionally tied to the company. They generally sell too late.
[ATTACH=full]87850[/ATTACH]
The chart also shows that WMI started at the same time as the bullish rally in the small cap sector. The challenge for the managers is realising some of their profits, selling the dogs and buying the next wave of small cap growth stocks. The opportunities in the ASX are too few. I think they'll struggle.
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