@andy777, Firstly, no one could possibly have anticipated the...

@andy777,

Firstly, no one could possibly have anticipated the sheer speed at which things have moved over the past week. So, while many people might ask themselves how they could have responded differently, there is no point in ruminating on what might have been.

Related to that, it stands to reason that when the market convulses like it just did, some companies get sold off for unrealistic reasons, but some are sold because they are simply not durable businesses. The former group will rise again, but the latter have a high chance of ceasing to exist.

I tend to be a slow-moving creature at the best of times, but even more so when capital markets have a conniption like they are currently doing.

I always like to be as fully invested as is practically possible for my circumstances, so what surplus capital I held at the end of the DH reporting season, I have subsequently allocated to existing holdings I have, mainly where I felt the size of my holdings did not reflect the relative valuation appeal, stocks such as AMC, AUB, KME, KOV, LNK, MQG, M7T, PTM, RHC, SDF, SDI, SXE, TNE, and WES

The only major thing I've done over the past few weeks that's new for me is buying shares for the first time in AIA and FID. These are two companies I've followed and admired over several years, but they've never been cheap enough for me to buy. Until the events of the past few weeks.

So those are the two major new positions for me.


Along with dividends (those that have not been cancelled!), I expect to received distributions from a related trust, in coming weeks. I've not yet firmly decided how to allocate those funds, but there are some truly interesting options that have emerged as a result of the market carnage, on which I plan to do more research in coming days/weeks, including some fine businesses such as REA and XRO. Also, VUK is trading like it is about to blow up, so there might be a deeply discounted rights issue on the cards at some point.

And there are a number of really decent small caps which are illiquid and whose market value has been badly impacted as a result, companies like:

APD
ALC
EAS
ENN
JYC
KOV
LYL
PKS
PTB
SDI
SKF
SXE


Getting back to COL (which is, after all the stock to which this thread belongs), I tend to be a bit of a stock hoarder, so I don't think I will sell my COL shares, but I do suspect that COL, along with other "defensives" such as AMC, WOW, and healthcare and infrastructure companies will be used as funding sources when major institutional investors wake up one morning and collectively decide it is time to start chasing beta again.
(That, or when they need funds to participate in the Great Post Carona-virus Recapitalisation of 2020... which is coming.)

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