Thanks Beagle, always appreciate your thoughts & advice.
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Thanks Beagle, always appreciate your thoughts & advice.
Lol you've got to feel for Matthew Ward selling all those shares for half the value of today's SP. Probably for the best he's the former CFO.
40c to 88c lol the madness of the market sometimes or is it the money printing
I got a few at 60 cents, not enough with the benefit of hindsight. Those buying at 40 cents when the virus looked like it might have a massive effect on this sector should give themselves a good pat on the back, well done.
I have a very strong preference for MET where it is now compared to OCA in the 80's. Adjusted for the much lower virus risk environment currently presiding, given we're right out the other side of the bell curve, I think MET at $3.77 are doing a very good job of mimicking the extreme value OCA presented at 40 cents.
Sure MET aren't at a 60% discount to NTA, (like OCA were at 40 cents), but they're at a 46% discount and taking into account the much lower current risk environment I think that's an extraordinary opportunity.
OCA in the mid 80's on the other hand is probably only trading at 5-10% discount to virus adjusted NTA.
Yeah, 40c was ridiculous. I think 80c-1$ is more than close to "fair value" from an IV perspective, until we get more consolidated forecasts and numbers.
Will be interesting to see how MET behaves. I think from a general perspective this sector is one heavily favoured by institutes and will probably prevail as our economies "long-standers", with demand not going out of the door anytime soon. I do somewhat favour ARV - however from a price action perspective its not really trading at a discount but fundamentally and balance sheet wise looking somewhat solid.
I'd rather sit on cash than pay full price for shares like ARV. Massive value or I'm happy to keep my powder dry.
Just thinking aloud here as in two minds about this one atm. It's been a good run and I'm wondering if it's time to bank the profits and build up the powder store for the other bargains that are around the corner, or maybe redirect those funds to a certain other bargain stock in the sector? Or should I just park these OCA ones in the bottom drawer for the long term? I'm thinking I should exercise some patience and do the latter. And if that proves to be a bad move and it drifts lower during the recession, well I guess I'll add some more. I guess in an effort not to be classified as a trader by the IRD, I should also just sit on them. What are others thoughts?
Not sure if it's been captured earlier in the thread, but in today's 1pm C19 update, there was talk of helping out the care providers towards the extra costs incurred with lockdown measures, which is good to hear.
Well I've been pondering the exact same thing today and decided to sell half of what I bought at average of 43 cents. I feel like there will be better buying opportunities elsewhere. If I was thinking about buying in OCA now, I probably wouldn't at these prices, so that reasoning helped me make up my mind. I also picked up some MET at $3.25 and may move the profits into more MET. (From a TA perspective on OCA it also looked to me like the upswing had lost steam, another reason to sell half).
$1 today perhaps?
Yes, cyclical and Longhaul, the classic dilemma. When to take a quick profit, when to stay the course. At times like this, I listen to Kenny Rogers singing "The Gambler". I'm not a good poker player but a bit better an investor and I'm staying!
:)
In the same boat TBH, have 3x as much MET in dollar terms. Just about finished selling down everything else because the values are just too crazy. If OCA hits the high price I've put on the sell order, then that's great, otherwise I'll just sit on them. Can't say I'm too happy with my lack of diversification ATM, but what can you do.
Don’t you think OCA has a better and quicker prospect of doubling their price from here than MET?
Sometimes the best thing is to be patient and do nothing. I wouldn't want to be broadly diversified in this market, there simply aren't enough shares trading at a bargain price below or in line with the underlying fundamental performance of the economy. I've been investing for nearly 40 years and apart from the odd pocket of fair value like this and deep value like MET and high growth opportunities at realistic prices like PAZ I have never seen the overall market so divorced from the underlying fundamental economic reality. That screams at me to stay out and let economic reality bite which won't happen overnight, but it will happen eventually.
PAZ?
As for the divorced fundamentals, couldn't agree more just look at what is happening to AIR right now! A great link table view of bear markets and their relative # of trading days is compelling, take into account market sentiment around what is an inevitable extension of being required to work and stay home I predict the bear market low to be right on the cusp of entering Q3 (End of June). The market will readjust, the driving factor of the weeks bounce must eventually be pulled down by the anchor that is the balance sheet most of those semi-functional businesses like AIR will be showing poor results.
# of trading days from Entering Bear Market to Bear Market Low Average 83 days, Bear Market low to Exit Bear Market average 63 days!
Thanks for the link Ecks. More on PAZ here https://www.sharetrader.co.nz/showth...PAZ-Pharma-Zen