Gearing up for "rapid and global growth", page-103

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PeterJay

716 Posts.

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27/10/20

18:12

Post #: 48430383
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Originally posted by baldynumbers: ↑

B&B... urgh... caught that one too eh? GFC was a lot of red... but that company cost me five figures too. only recently managed to reclaim a bagger off re-entry into one of their listed trusts.... overall was still a red transaction...

I may suggest that perhaps English isn't PeterJay's first language - as some phrasing doesn't line up 100%... but I think he referring to value investing??? Implying that you should only invest in companies which you view as worthy of being held long term (hence if you aren't LT positive on the stock... dont invest at all). I don't think its a safe strategy for this end of the market - but risk management is an individual thing.

"Strategy 1: Value Investing.

Value investors are bargain shoppers. They seek stocks they believe are undervalued. They look for stocks with prices they believe don’t fully reflect the intrinsic value of the security. Value investing is predicated, in part, on the idea that some degree of irrationality exists in the market. This irrationality, in theory, presents opportunities to get a stock at a discounted price and make money from it.It’s not necessary for value investors to comb through volumes of financial data to find deals.

Thousands of value mutual funds give investors the chance to own a basket of stocks thought to be undervalued. The Russell 1000 Value Index, for example, is a popular benchmark for value investors and several mutual funds mimic this index.As discussed above, investors can change strategies anytime but doing so—especially as a value investor—can be costly. Despite this, many investors give up on the strategy after a few poor-performing years. In 2014, Wall Street Journal reporter Jason Zweig explained, “Over the decade ended December 31, value funds specializing in large stocks returned an average of 6.7% annually. But the typical investor in those funds earned just 5.5% annually.”1

Why did this happen? Because too many investors decided to pull their money out and run. The lesson here is that in order to make value investing work, you must play the long game."

To 9SP: another day of moderately low volume / size selling before the million sold post 4pm... all of the close sales were at 3cents...but the market as a whole was also down 1.7%... so 9SP performed worse today - after initially appearing to hold up well.

Still of the opinion that we have a few quarters ahead of us before any real progress is revealed on the sales channels... until that time - cash burn will be key indicator for me. 9SP need to tightly manage this until the revenue increases... or at least moderate cost increases in line with revenue increases.

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@baldynumbers Thanks for contributing to discussion and input about value investing.

9SP Price at posting: 3.0¢ Sentiment: Buy Disclosure: Held
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0 Great analysis

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