Originally Posted by
Motley Crew
Absolutely correct. This is a long term growth stock, not a short term trading stock. Anyone buying it for the latter will inevitably get their fingers burnt. While the SP will likely continue to drift off until the value proposition returns, this is still one of the best companies on the NZX for future returns. Take a look at the SP chart over the last 2 years - 2018 hit $14, fell 36% to $9. Then 100% gain to $18 in 2019 before 32% fall to $12.25. Then 76% gain to $21.50 before current retreat. Each of these retreats presents a great buying opportunity to top up and ride the next wave up. If you are a long term holder (as I am - average buy in $5.30) these dips are just great. So many commentators on this forum getting their knickers in a twist over some short term (and I mean 12 months - see the SP charts) weakness. Hold and add to your holding if you believe in this company and don't try to time your exit and re-entry points - you will inevitably be too late to jump back in when the better news comes out. If you like technical analysis wait for the shorter end trends to stabilise and begin to firm - that may yet be some time away. The bottom line is these lower SP levels are eventual buying opportunities. Where else in this market can you find relatively easy potential 30% upside in a blue chip company ? Greedy traders might look for those returns over a shorter time horizon, but how many are actually successful ? With a 187% return over 3 years at today's SP, I will biding my time until the signals look good, and will be topping up my holding. Nothing better than making the same money twice on the same price rise as previously, with a greater share holding. instead of agonising over what is now past history, start looking forward to the opportunities ahead, and recognise them when they present themselves....