Curro AGM; titbit. At 53% current capacity utilisation COH made 49cps in FY17. With NO NEW SPEND CEO says if it was at 90% utilisation FY17 earnings would have been 201cps showing how growing into latent built capacity can now power Curro's earnings growth ahead
— Small Talk Daily (@SmallTalkDaily) June 4, 2018
In a recent Fat Wallet podcast Kristia commented again how her investments have done pretty much nothing over the last few years.
Now there is only one reason we buy any share, ETF or even derivative - too make money. But what happens if we don't make money or worse the price falls and we're losing money.
Now it depends in part what we bought. A derivative trader will stop out and indidiual share buyer may hold as they consider it quality and in time it will start moving while an ETF should in theory not worry about the short term and just continue holding. That's the theory.
But we get a phenomenon called stake bulls, especially with individual shares.
Lets take Aspen (JSE code: APN) as an example. It hit a price of almost R450 in January 2015 after trading at R100 for the first time just three years earlier and 1000c was hit for the first time in 2003. If you missed the initial run from 2003 you'd have felt aggrieved at missing out and you may have jumped in at R100. But many would have said no they'll wait for the pull back, a pull back that never really happened. Then after a price of almost R450 there is a serious pull back to almost R250 and many jumped in during that pull back. That was followed by another rally but only to R350 and now we're back at R250.
So having watched Aspen be one of the best stocks on the JSE you're now holding it and your price is under water. You're not happy and frankly you want shot of the share - but ideally at as small a loss as possible - you're a stale bull.
So now every time it rallies the stale bulls are ready to sell essentially capping the price.
We see this with a number of local shares and to a lesser degree with ETFs (lesser here as we're too small to really influence an entire index).
So what do we do?
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