Value investors live a hard life these days. If it was ridiculous 5 years ago it is even more so now...Post #: 50439077, Post #: 68621784
I've had a few in the portfolio leave under similar circumstances since. BIN, VRL, CCL, SAR, OZL, NCM, CGC and now JLG. The markets fair value mechanism is well and truly broken the last few years. Those that can afford whole businesses are taking them private. I can't say I blame them. I'll do the same if I had that kind of money. At least these acquirers hold onto businesses for a long time compared to the usual market participants. I admire these acquirers for their of conviction and envy their access to $.
I believe the problem is the current market mentality. Too many market participants are focused on the short term that they don't let their investment grow properly. Many don't give their investments the leeway of a bad quarterly let alone a bad FY. Those with longer horizons used to consistently win this race but that is not so anymore. Not when I'm forced to pick the fruit well before they are ripe. Those with compound accretion in mind have better chances but (like I do) watch in horror as good LT investment options dwindle and everyone is herded into a handful of stocks like lambs to the slaughter. Which makes it even easier to get everyone to rush for the exit on a hint of a bad quarterly and/or FY. Wash rinse repeat, as we all march like zombies towards the death of the free market while holding on to an ever devaluing currency. While good assets and value accretive businesses marked private and unobtainable.
(20min delay)