Lemas.It may be tempting to presume that what you see people...

Lemas.

It may be tempting to presume that what you see people write about is all that there is. Take another example. I have made many interstate friends at the National Folk Festival held every year in Canberra. I am always surprised at the number of people who think that I live in Canberra just because they see me at the festival, eventhough they also are from interstate! It is an easy trap. After diligently doing one's homework on share analysis on a variety of companies there is often not much time left to write meaningful posts.

I am always in a quandary about the value of writing posts because of frustration with junk. Hence to make my position clear I wrote it in poetic form here on this board so as not to offend. (See 19 Oct 2007)

GDY v PLT. With limited investment funds one is nearly always in a dilemma of which to buy first out of a short list of prospective companies. Spreading risk is important. Maintaining a balanced portfolio is of little importance unless you don't know what you are doing. GDY is incredibly easy to understand: to know where the risks are, to determine an actual time line of key share price affecting events, to comprehend the professional competence of the company, the national need for the product, etc. PLT parameters on the other hand are more nebulous. We know the general kind of announcements that will make the SP move but we don't know when this will happen; we don't even strictly know that it will happen because the sleeping giant (China) is very temperamental. The fact that PLT deals through a distributor in Singapore is a protective advantage, but at the same time there is some loss of direct control. One could extend the list. However, it would take only a few good contract announcements and the SP could increase by 50% or more. It is more of a wait and hope activity (with reasonable probability).

Maintaining holdings in both plus others can therefore give a good reward/ risk profile.

Juke