In this particular case I must agree with the egg...... to take such a large percentage stake in the first place, one should have been VERY sure of the company and its future certainty of earnings and the "stickiness" of its customers. For a company with such a limited number of buyers and sellers was another red flag. Not responding early enough to the bad news and getting out earlier was another. To have ridden the stock down to the level it has was another. We dont know how much of ARQ, CDM still has on the books... but Karls actions with our money have been a bit cavalier in the sense of taking such a large position in a second ranking company without a large moat. He can do what he likes with his money, but IMHO should have spread the risk over a larger number of shares. After all, what did he think the catalyst was going to be for ARQ to justify such a large proportion of the fund and make such great returns for CDM ? You invest in an LIC with a good reputation, because you want steady returns, income and to spread the risk. Not what we got !!!
CDM Price at posting:
76.0¢ Sentiment: Hold Disclosure: Held
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