G'day Accumul8. You said in Post #: 66162505 above: "Hard to believe the market feels the company hasan EV of 13M at the moment. Just under 5M cash at bank." I agree mate and I'll elaborate a bit although I feel you know what I'm about to say.
Ignore the noise (if you can) as it really is ano pportunity As my recent Post #: 66146313indicated, small numbers of people can disconnect a tightly held stock from its underlying value quite easily. When that happens, and the stock has agood chance of recovering in the foreseeable future that typically becomes ano pportunity. In essence, here we are... I know no-one takes much comfort about the'great opportunity' point when an undervalued stock continues to go south from an already depressed level but the opportunity point is so often true. I livein the knowledge that if you get it right and it can change your life. Very fortunately, I've found good success more than once, by applying the essence ofwhat follows. It's not just a hobby - it pays my bills.
Here's how I got lucky a while ago with another one that had been hammered Here's a quick story from pre GFC. Maybe one dayI'll elaborate over a drink, if we meet after an AGM or something. I was asked if I wanted to run an unloved, under-performing resources company that was seen to be trading at well under its potential and even its current value …. I declined as I thought the company needed a different skill set, (which it later hired). I said however that I would invest in it, and I waded in, in stages,buying a lot, in cap. raises and on market over a period as upside looked increasingly achievable.
Ultimately, the share price multiplied 10s of times over, from the low point. The huge rerating (which I had always hoped forbut you can never be sure about) meant I was lucky enough to pay off our house,buy a great car, have plenty left over to just live well, and also help several family members very significantly. I invested the remainder.
Easy to relate to, part of a basic checklist to ease the frustration Hope the above doesn't seem like boasting because I definitely didn't do it perfectly. I didn't pick the top of the market to sell out, nor did I even buy meaningful quantities at the very bottom– although I jagged a few. But I did buy a lot (without stressing myself financially) when they were trading way too cheaply, I thought, and I continue dto buy as the story improved and risk decreased while MC continued to lag materially. Luckily, despite what I left on the table (dooh) it became a life-changing illustration of the point about buying: * what became a well-run stock (as we already have here with Kingfisher) … * which was significantly undervalued (as we surely must be in any at least half-reasonable market) … * in a good sector (as we certainly have here)… * and with very good potential (again, as we certainly have here IMO) .. * which was not being properly priced in by the market at that stage (as is our current position, IMO, based on what Kingfisher has released over the last 12 months).
Against that background, I don't like the current depressed share price (even though it's above my average buy price andI'm not a seller in the foreseeable future). Importantly the near term share price does not drive my decision making. Instead, I try and continue to stay focussed on checking that there's still significant upside potential. FWIW,I don't have any doubt about that, so I'll hold for the foreseeable future to let the story continue to mature. This is one of my favourite opportunities.
