PEB - Pacific Edge Ltd

[Leftfield]

It's not always easy being patient - it requires a cast iron stomach at times and I guess it depends on your investment philosophy..... I'm not really bothered whether PEB reaches $1.00 today though it's nice watching the upwards movement. I'm a firm believer in this company and even though it's now reached 20% of my portfolio - I'll still be holding when it hits 40%.

Indeed. Even tho' my investment philosophy is long term, I'm still not quite as patient as you.

PEB is a classic example, I first purchased about 2012 (like you) but once PEB started dropping after it's first flirtation above $1.00 I gradually sold out. I'm a bit tougher on any share going south (or sideways). Fortunately most of my PEB proceeds went into ATM which grew to 70% of my portfolio in the intervening years.

Got back into PEB this year after the Covid scare and it's currently 15% of my portfolio, showing over a 90% gain on my av hold SP.

SSSooo not as patient as you, but pleased to see us both doing well and much better positioned than in 2012.

This site is a great education tool and I appreciate those who share their learnings.

Onwards and upwards.

[calledone]

Indeed. Even tho' my investment philosophy is long term, I'm still not quite as patient as you.

PEB is a classic example, I first purchased about 2012 (like you) but once PEB started dropping after it's first flirtation above $1.00 I gradually sold out. I'm a bit tougher on any share going south (or sideways). Fortunately most of my PEB proceeds went into ATM which grew to 70% of my portfolio in the intervening years.

Got back into PEB this year after the Covid scare and it's currently 15% of my portfolio, showing over a 90% gain on my av hold SP.

SSSooo not as patient as you, but pleased to see us both doing well and much better positioned than in 1912.

This site is a great education tool and I appreciate those who share their learnings.

Onwards and upwards.

What’s with 1912?!!! That flew over my head lol!

[Leftfield]

What’s with 1912?!!! That flew over my head lol!

OOoops..... showing my age!! Now corrected. Thanks.

[MauroNZ]

Plenty of believers in the Jarden forecast it seems - and the Bloomberg story has helped as well.

I think there's a great deal of good news bubbling along in the background to support what's happening with the SP - but as Miner said the other day FOMO is also driving the action.

SP is 99cents as I write. If NZX issues a speeding ticket the standard response will be received and we will be none the wiser until the next update from the company.

Meantime, and while the gains are all on paper, I'm enjoying the ride and the reward for my patience, hanging on through all the constant harping negativity on here a few years back. The 8th anniversary of my first purchase at 53 cents is December 28th. Since then I've bought many more at prices ranging from 10 -72 cents and hold x,x00,000 at an average of 59 cents. Sure, I could have moved in and out of PEB and maybe made bigger gains - but that comes with hindsight - and made me a trader. I prefer not to pay tax if I don't have to.

Hi Pierre, would you please mind commenting your criteria to buy at that time? in 2012 this company was very far from my radar and I could probably learn something from your experience.

[calledone]

I've been following PEB for almost a year now and I've not seen the trading pattern we saw since 3rd Dec this year. I'm amazed at how a single analyst upgrade and a positive bloomberg report lifted this stock (at least on the surface those seems to be the catalyst). I suspect a lot of overseas and new investors have also jumped on board this time.

[Balance]

I've been following PEB for almost a year now and I've not seen the trading pattern we saw since 3rd Dec this year. I'm amazed at how a single analyst upgrade and a positive bloomberg report lifted this stock (at least on the surface those seems to be the catalyst). I suspect a lot of overseas and new investors have also jumped on board this time.

Simplistically, companies want to be included in the benchmark NZX50 as :

1. Funds & institutions tracking the index have to invest in the companies - creating demand & liquidity

2. Brokers and analysts start covering the stocks. In fact, funds & institutions award brokers points & business for providing coverage.

The coverage in turn attracts new investors when the story is a good one.

[calledone]

Simplistically, companies want to be included in the benchmark NZX50 as :

1. Funds & institutions tracking the index have to invest in the companies - creating demand & liquidity

2. Brokers and analysts start covering the stocks. In fact, funds & institutions award brokers points & business for providing coverage.

The coverage in turn attracts new investors when the story is a good one.

Thanks for the insight Balance.

[pierre]

Hi Pierre, would you please mind commenting your criteria to buy at that time? in 2012 this company was very far from my radar and I could probably learn something from your experience.

I bought about 50% of my current holding in 2012/2013, bought more in a CR late 2019 at 10 cents (a real act of faith) and topped up again with a substantial purchase in July this year at 56 cents - my average cost is 59 cents.

My interest in PEB started from comments on ST by a few enthusiasts. I would never have known about the company otherwise and certainly it wasn't on the radar of any broker at that time. I thought the product(s) they were developing (based on research out of Otago university) was a great service to humanity and not only did the company deserve support but also it had potential to be either a substantial money maker or a target for an attractive takeover bid at some future point (and still is!). (I was also a supporter of BLT - also spun out of Otago U. It's been a similar ride to PEB - but that's another story.) It was definitely a speculative investment and I've always reserved about 5-10% of my investment funds for that purpose. So far I haven't lost any - on paper anyway.

The PEB price soared at one point up to about $1.70 following comments from the chairman. The wise traders sold out at that time but that's not my investment philosophy so I hung on. The chair's comments subsequently proved to be unfounded and resulted in a great amount of vitriol from one poster who relentlessly rubbished both the chairman and the company on ST. That wasn't a confidence booster and sorely tested my resolve to remain onboard.

From then on it was a gut-wrenching roller coaster ride as the SP rocked and rolled over the years and the company regularly raised more cash as anticipated developments in the US were delayed. It wasn't fun watching the SP plummet dramatically early this year - but all is right with the world once again as the price now closes in on $1.00.

I'm not saying my approach to investing is any better than anyone else's - but overall it has served me well and made me a great deal of money.

I guess I'd sum it up by saying it's about having faith to buy into a business in the first place - and if the faith remains - to have the patience to hang on through the ups and downs till the company finally succeeds. Just like life really.

[Minerbarejet]

Pretty much the same for me with a lesser amount.
I think there was a lesson to be learned from that spike to 1.70 and that was Mr Market can be pretty irrational at times. That was precipitated not only by an overenthusiastic statement or two by the company but the fact they had just signed up 2 or 3 insurance providers. The situation was ludicrous as they were running a cap raise at the time and people were scrambling to get enough to participate as they were heavily reduced by comparison. Consequently I remain alert when things suddenly jump up without good reason and there needs to be a consolidation about now. You have to consider that there is no profit as yet and when that might be is completely unfathomable.

GTTT
Cheers
Miner

[BigBob]

Pretty much the same for me with a lesser amount.
I think there was a lesson to be learned from that spike to 1.70 and that was Mr Market can be pretty irrational at times. That was precipitated not only by an overenthusiastic statement or two by the company but the fact they had just signed up 2 or 3 insurance providers. The situation was ludicrous as they were running a cap raise at the time and people were scrambling to get enough to participate as they were heavily reduced by comparison. Consequently I remain alert when things suddenly jump up without good reason and there needs to be a consolidation about now. You have to consider that there is no profit as yet and when that might be is completely unfathomable.

GTTT
Cheers
Miner

I am also more or less the same with slightly lower average buy... and I did pick up a small parcel at 8.5c earlier this year... 🙂

I also do recall the spike from back when, and have definitely learned my lesson from that. In addition to the sign up of the insurance companies, they had also received approval for the US lab, which from memory was when I first bought in.