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SGH

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54.5¢ slater & gordon limited

Bearing Fruits- More Lemon?, page-140

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jimk3758

23,207 Posts.

83

24/09/16

19:50

Post #: 19399307
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Originally posted by Dr.Who ↑

Did you miss the point I was trying to make?

I'll try re-framing my view on this.

Correct, institutional type investors are not likely to go near the stock today and it is likely to remain that way until a clear runway is evident.

Therefore that leaves traders to do their trading range action in the vacuum.

That should have no bearing on a long term holder other than keep providing accumulation opportunities as lows are tested again. Afterall if holding long term then a rational investor must believe in an above average return commensurate with its risk.

The viscious circle will be broken when that long term holder faith is proven by improving results released by the company. At that time institutional investors are likely to reconsider the stock and rerate it to xxx

Therefore the trading vicious circle is keeping the SP lower enabling long term holders to accumulate and the longer that cycle persists the shorter a long term holder will need to wait before getting gratification from their more recent buys.

In any event the long term holder is not selling - otherwise they are trading - therefore it is irrelevant as they hold because know the SP will provide a return down the track. So little point in even looking at the SP daily unless wish to take advantage of traders, holding in a trading range, to accumulate at the lower of that range.

To disagree with that suggests just want to see a sudden SP hike somcan sell in which case the person describing themselves as a long term investor would in reality be a trader.

The paradox of investing/trading! Or more to the point definitions of such. I raegard the two notions as joined at the hip, which is exactly how I view my activity.

Expand

I don't want to debate this ad nauseum except to say I think SP would be around $1 if SGH was not infested with traders. Out of curiosity how do you think SP will go lead up and post AGM?

Last edited by jimk3758: 24/09/16

SGH Price at posting: 38.5¢ Sentiment: Hold Disclosure: Held
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