as I mentioned yesterday, Iaccelerated my top up yesterday, getting stock at an average of $4.65. My overall average has cone back down to about $6 but that disregards the stock I sold above $9.
However, I’m not gloating or bragging, as I lost a lot of value in July as I added below $7.50 and it fell.
However, because of $ cost averaging maths, another day like today will get most of my July losses back, I don’t need it to get back up to $9, $7.50 will now do fine. I can see $7.50 happening again in my lifetime.
Its clear that some instos were dumping in July. Until the stock gets back up towards $8.50, it will not worry large instos if they are not holders as its MC is back below $500m, and after allowing for director holdings, its free trading weight is below $300m. So it will stay out of the major indices for a while. They only worry what the index constituents are doing and the risk of it going into an index without them holding any, and running on it.
Only the microcap funds and HNW portfolios (and some HC traders) will be buyers and I suspect they were todays buyers. At this MC again it can easily become a doubler over 3 years. Thats what attracts me. The game can change but right now the fear of an overhang is paramount. Only business performance will turn this around, but it could also attract a gamechanging investment fund from overseas - its already happened once so why not again? That and more clarity about the stock coming out of escrow would help.
I spend my life buying things that the majority won’t touch, so I’m comfortable being wrong recently. That seems to be markets, very humbling at times.
KGN Price at posting:
$4.98 Sentiment: Buy Disclosure: Held
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