Blood supply shortage in the US, page-59

"risky trade given you could have made same argument to a greater or lesser degree all throughout CSL's listed history and to date it was always the wrong trade. ie . you were always better off remaining in CSL than trading down to a supposedly cheaper share."

@W534220

Your argument is a bit flawed in that it fails to consider that never before in CSL's history was the stock trading at its current record valuation multiples at the same time that a global pandemic caused other high-quality companies to raise capital to shore up their balance sheets at attractive discounts to their current share prices (share prices which are at multi-year lows to begin with).

For example, I am selling my CSL shares to participate in the following capital raisings:

AIA @ $4.52
REH @ $7.60
FLT @ $7.20
SCP @ 2.20 (I wasn't a shareholder, so I didn't don't to participate in the Share Purchase Plan (SPP) which is offered at $2.16, but I am buying shares on-market today for an average price of around $2.20).

I strongly expect that allocating my capital to those opportunities will enhance my financial position more than keeping my capital in CSL shares.


And I have taken minimum positions in each of the major banks, as well as a few other financial sector and other large cap stocks which I think are candidates for capital raisings which will include SPPs, and possibly invitations to subscribe in excess of SPP offerings.

Along the lines of the following thinking:

https://hotcopper.com.au/posts/43903447/single