I'm now showing a loss but it's no real surprise. Some of my other holds are testiment to exactly the same sort of market behaviour.
With the buyback (which I don't really support) happening soon AND revelation of the new projects happening soon the SP can be expected recover a tad by Christmas. I'm not a Patterson's fan but my near term price target for AZZ is currently the same as theirs (upon disclosure of the new projects).
Looking at my portfolio disclosure (below) the market would say "highly speculative" for the lot of them including AZZ. While one hold (BCC) is indeed speculative I can't see much risk at all in the rest of them. Everything (except BCC) is, in my uniformed, view supported by heaps of (debt free) cash and/or signed royalty agreements. All have real resources or valuable IP. To say any more would be ramping BUT there are indeed many undervalued but solid resource plays with more cash than market cap (or close thereto).
The ASX HATES technology, it HATES new ideas, it HATES small caps and it ASSUMES O&G plays will, on average lose money. I don't see it that way but I don't begrudge the market either.
Economist Nassim Taleb suggested several months ago that there was no point investing in the middle of the market ATM because there is insufficient potential reward to cover current market risk. By contrast most average punters and funds managers actually prefer the dead pan middle (along with residential real estate investments) for reasons I can't actually comprehend. I'd better stop prattling.
cheers
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