There's a simple saying you hear and that's 'never buy into a down trend'. Even if it's "the best stock ever". It's a pretty good rule if you're anti losing money. (also known as don't buy more of a bad story)
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Sure - and this simple saying stands (as many others) sometimes the test of hindsight - and sometimes it does not.
I made some of my best deals buying good companies in the red ... good business to buy good companies during down trends (when they are cheap) and sell them during up trends (when they are dear). Just applying the simple saying "buy cheap and sell dear" :p;
The truth is - it always depends ... on circumstances not known to the buyer (or respective seller) at trade time. Of course ... one can (and should) do a risk assessment, but this is more then just looking at the trend.
That's the reason why so far nobody got rich just by applying "simple sayings" - if it would be that easy everybody would do it and it would not work ;);
Agree.
Add to your winners,sell your losers.
Whenever I want to add to my strongest shares, I find the funds from selling my weakest shares.
I also prefer adding to companies I already hold.
However I have also done very well adding to "strong conviction" shares such as HGH in downtrends,Buying any share in a down trend, you must understand the company better than "the market" or "loud posters" on ST..lol.
I actually had a quick look through my portfolio and the only share I've averaged down in the last 10 years was actually Serko which I have bought at IPO $1.10 (my biggest parcel) then at 76c and 35c.
I have different strategies for different companies. I own quite a few speculative stocks where I start really small and then add on if I like the message through SPPs or on market (like ATM, GNX.ASX, XTE.ASX). Some go bust but then the losses are small.
Probably won't happen that way, as they may miss out on cheaper ones due to following as per SPP docs :
"If Serko receives applications in excess of NZ$5.0 million, it will scale back all applications on a proportionate basis in accordance with the number of Serko Shares held by the Applicant (or, in the case of an application made by a Custodian, the relevant beneficial owner(s) named in the schedule submitted with the Application Form) on the Record Date. The board of Serko believes this is the most equitable manner in which to deal with applications in excess of the funds required under the SPP."
I'll be going for my full entitlement....
That could well happen. The Offer Document says
"If Serko receives applications in excess of $5.0 million, it will scale back all applications on a proportionate basis in accordance with the number of Serko Shares held by the Applicant...The board of Serko believes this is the most equitable manner in which to deal with applications in excess of the funds required under the SPP".
That seems to mean that in a likely big scale back the shares allotted will depend on the number already held by the applicant, not the number applied for (and money sent in). A bit like a rights issue. So big refunds could be coming in due course to some applicants who apply for the maximum. So expect a bit of a delay in buying back shares sold to raise the application money.
I don't think they will take the money out of your account until they have done he scaling. That's the impression I got anyway.
It is strange, you would think they would do a rights issue with a shortfall book build. The release made it sound like regardless of your holding you are entitled to up to 15k
1/ You pay your money (it disappears from your account) when you apply and you get a refund if there is scaling.
2/ If you hold any shares you are entitled to apply for $15k worth.
What I do not understand is what
"it will scale back all applications on a proportionate basis in accordance with the of Serko Shares held by the Applicant"
precisely means.
The more you already have the more you get scaled maybe?
or maybe not?
My understanding is that if 2 applicants, say one holding say 1000 shares, and one holding 10,000 shares, both apply for the maximum $15k, and there is a scale back, the 10,000 holder will get more based on some formula that will have to cover all applicants.
What is also unclear is what effect the amount applied for has. Obviously if you thought there would be a big scaleback, you might not apply for the whole $15k worth and keep use of the money. The OD could have been a lot clearer but perhaps Serko does not really know just how it is going to do it yet.
I found a recent example of a scale back based on the applicant's holding. It is ASX listed Audinate (AD8) which is fairly hot tech share and the A$4M SPP in 2019 was 9 times over subscribed. The whole CR was very like Serko's with a nominal SPP for existing shareholders compared to what the instos got. The scale back was massive and a lot of applicants got almost all their application money back a week or so after the offer closed. AD8 did not say in the OD just how it would do the scale back.
AD8 advised:
"The SPP allowed eligible existing shareholders....the opportunity to subscribe for up to A$15,000 worth of ordinary shares in Audinate (Shares) at the discounted price of A$7.00 per new Share. As stated in the SPP Offer Booklet, Audinate capped the raise under the SPP at A$4 million and reserved the right to scale back applications under the SPP if it was oversubscribed.
A Scale back policy has been applied such that applicants who held more than 100 Shares on the Record Date will receive an allotment of new Shares under the SPP equal to approximately 4.75% of the aggregate number of Shares they held on the Record Date, up to a maximum value of $15,000 worth of new Shares (based on a Share price of A$7.00 per new Share)".
Let us hope (and even pray) that we do a bit better than that!
Indicative opening on ASX equates to NZ 4.82...
Thought I better sign up for my $15k worth ... not sure how many I will get but they might be the last ones I can afford!
I am guessing the spp stuff is on its way via snail mail :)
I filled in the online form - job done. Don't want to miss out on an easy $3k (at todays SP) if they grant me the full allotment.
I am told it is always right to buy at $4.04 - even if it is my first foray into the $4 bracket!
Tried to do it on line but I dont have an entitlement number yet so it wouldnt let me :crying:
Just adding to Janner's response.
Your entitlement # should have been emailed to you.
Link can be contacted at this site https://investorcentre.linkmarketser...nz/Login/Login (always good to check their holding figures are consistent with your records.)
SKO's site for handling the SPP; https://www.serkoshareoffer.com/country-validation/
FWIW - I received my emailed entitlement # and CSN last week, I completed the online SPP as above and found it v easy. This week I received emailed notification that my $'s had been received.
GLH.
Thanks for your help guys, I will get onto Link this morning
Among other lesser important news, we hit another ATH of $4.90.
Congratulations to you too Silu. I was reflecting today that the way ATM is going, SKO will soon overtake it in my portfolio! Crikey who would have thought..... I guess it is called diversification.
And yes, very happy to have increased my holding before the recent news..... a rare success;).
I have a very strong belief in SKO, they have a great team, great product, great international footprint and are making some great decisions. Once the cash raise is over I expect the SP will reach new highs.
I think it was Balance that first drew my attention to SKO so big thanks due there. GLH's!
I am guessing the uptake was fairly popular given where the sp has headed.
I've decided to clear the table and sell some loss making companies that always seem to raise money at huge discounts to go full tilt at the Serko offer. Somehow I can't see the SP dropping to the raise price as they often do. Too many holders with big parcels are holding on tight. So investors who want to be part of the Serko story have to go to the market.
Booking.com crushed earnings today. Expedia etc not as impressive.
Not a lot of strength on either side of the table so could go either way depending on where the lurkers are.
Hold trajectory is pretty consistent though.
Like you, I have decided diversification is overrated! Hopefully, they continue to deliver what they say they will and we can all retire happily-ever-after.
I don't remember the exact quote but from one of my favourite shows Billions but Chuck Rhoades Sr said "If you're sitting on a monster you're riding it hard". I admit he lost a lot of his (and juniors) money in the Ice Juice IPO but sometimes you just have to take risks to reap the rewards.
Thanks for posting. Found this article comparing Booking.com to Expedia v informative.
Re Diversification being over rated, I like the saying attributed to Buffet (?) and paraphrased.. "if you have all your eggs in a few baskets, you need to watch those baskets carefully." (or words to that effect.)
SKO currently 25% of my portfolio.
Here's the media link for those interested to read more...
Booking Holdings +4% off strong room nights growth
https://seekingalpha.com/news/351664...-nights-growth
Booking/Agoda is my main source for finding and booking accommodation, although I also use AirBnB as well as Accor & Archipelago (Indonesia).
I could be the reason for the uplift this year as have made 55 booking!
Meanwhile happy with the SP appreciation of recent weeks and hoping for a reasonable pull back over the next few months (to buy some more SKO)
Applied for SPP online, done and dusted. Very easy and straightforward.
Well, the fifteen grand's gone out, now let the waiting commence for the ten grand to come back in.
G*d I loathe and despise SPPs!
Hopefully all that likely returned cash from the SPP fuels an increased buying frenzy to push us over the $5 barrier.
Pretty happy with my current position but won't be crying if none of my $15k is returned.
Latest from their twitter feed re article posted in NBR..
#Shoeshine: Kiwi travel booking platform company @SerkoOnline is disrupting the global industry. “Are we at the beginning of another Amazon, another Expedia or whatever?”
More importantly a disruptor that's already on the radars of the big behemoths in the corporate travel industry. With a clear focus on how to grow revenues and the ability to pivot to a cash generating model Serko stands as a beacon of hope that we have a Kiwi contender for true global domination (at least that's what I tell myself because Serko will be in the 30-40% share of my overall portfolio depending on scale back).
Mine too :-). Hoping for no refund as well, but suspect that's a lofty aspiration...
15th done and dusted, I would love to be on the shoulder of the person who decides on scaling or increasing the allocation of s hers amount! TWT !
What are we expecting, 25% of what we applied for ?
Wow they received $18m in applications for $5m sought.
I wonder what the average holding is?
that's a huge refund... SP will be pushed up?
Being above average I might get half my allocation then :t_up:
Hopefully some of that missed out money ends up on the open market - as opposed to a flood of easy money shares (although I suspect most of those who got any significant number are accumulators).
Pity interest rates are so low, the "borrowed" money would be a good earner for the company otherwise!
Another way to estimate what one may get would be to divide the $5m by the # of shares (11.27m) held by the 1,870 shareholders (assuming all applied) = 44 cents worth per share.
So if you have 20,000 shares, you will get $8,800 worth of shares.
If you have 1,000 shares, you get $440 worth.
Anyway, all will be revealed soon enough.
PS. Was lovely in the old days when one was able to buy $100 worth of shares in a company to obtain $5,000 worth of shares in a SPP! Then, they changed the rules. ;)
Well where there is a large institutional component in a CR the instos insist on a fairly paltry retail SPP component (if SPP unavoidable) as they do not want to be diluted. SKO might have preferred just to do an allocation to instos as it is quick way to raise big lumps of cash and SPPs cost a lot to do especially involving both ASX and NZX but SKO probably suspected that retail holders would scream hence the paltry SPP.
Maybe next time they will do a rights issue and then everyone get treated fairly.
Interim results for period ended 30th Sep due out tomorrow followed by conf call at 11.30am. Hopefully they'll provide more colour around future direction in relation to Booking and any other snippets of interest.
Producing more gold than some gold mines :cool:
Surprised not to see an announcement re SPP allocation, tht it was supposed to be today.
I obviously owned less than you guys pre- cap raise...I only got about 15%!
I cannot see my shares in the Link reg, have they been shifted?
Happy days. I got 2,466 or about $10k worth.
So pretty close Balance.
Very impressive turnaround on the refund sb9 I agree.
It is as they say it is, $4.04/share, as out of $15K only $3.52 was credited back to my account :t_up:
Looks like most punters were happy with their allocations. Not too many rushing in today to invest their refunds in a further top up.
I've just received an email(twice) advising the quantity received and that my application was scaled. Other than saying applications were scaled in accordance with the number of shares held at the Record Date there is no more detail on the actual formula. I held 20,000 shares and received 2400.