article in the australian 30th august, page-24

Con80.

Mid to late July there was a lot of whipsawing above $4.00, on increased volume, the SP didn't want to clear $4.10 convincingly. So that was one decision.

The second decision was the overall markets were showing signs of turning south.

The third decision was two stocks in my portfolio represented almost 55% (AGO and MTE). Ideally I would prefer 10% weighting (max 15%). I am still overweight on MTE.

I am now holding about 35% of my previous position. Bear in mind about half that was bought during the GFC lows.

Fundamentally I love this stock, but I prefer to be cautious, because I was 100% committed in the market during the GFC, lost 70% to 75% on paper, obviously I recovered strongly (had no leverage and will not use leverage).

I just wanted to have a cash position to call upon if another rout occurs in the market.

AGO does have a history of closing its gaps and does tend to navigate itself within a trading channel.

I am prepared to buy back shares that will bring me back to about 50% to 55% of my previous position. Technically we are in a bear market so the trend is to the downside.

Buy the dips and sell the rallies is what the market forces will use during this period.