Ann: Response to ASX query , page-8

This is the gospel according to Howard Marks:

The goal of an active investor is to beat the average return. If Average return is all you want, just buy index fund.

To beat average return, you cannot do what average people will do. If you do what they do, you will get what they get.

But being contrarian for the purpose of being contrarian is not sufficient, you have to be RIGHT when they are WRONG.

Now in this stock, what worries me is that I do not know who "they" are.

There are 2 possibilities:
1. The sellers know something more than what is publicly available knowledge. Probably they hire people to watch Funtastic sales in local supermarkets

2. The sellers are merely panicking and selling because they lack the patience or financial fortitude to hold a stock for 1 year without return.

I will know the answer for this when the financial report is out.

But at the moment, I don't see the logic in selling this company at 6x earning; unless I KNOW that their sales are bad.

i.e. I think the market is wrong, and that is not an easy position to take, because the market is usually right.