Captital Raising, page-48

Originally posted by Len

I like your optimism, but you have not counted the shorters who will want to send the price down big time. That will start a race to sell entitlements as fast as possible. I will be watching and waiting. Lower the better since I don't hold yet.

Yeah Len, I have optimism but that is balanced by market forces and shorters, so one needs to be careful when taking a position in a stock like HVN which is still hovering around recent highs.

My original entry into HVN was when the stock was closer to $2.00, a punt then as we were coming out of the GFC when cash handouts by Government helped retailers a little, and luckily I was right with good capital gain since.

But right now I am a little conflicted. I like Harvey because of he does not rent premises, and the property portfolio is over $2.5B. But again the retail space is a different beast to several years ago, margins has fallen and the economy is at crossroads. I think Harvey Norman will continue to be profitable but the SP can fall off from recent highs, well below $4.

So I will accumulate, love the dividends and franking credits in Super, but yes the shorters might drive it down further, however, if it gets down to around $3 and the world economy has not collapsed, then my advice is to buy strongly