Hi
@Sojourner
Yes, the share price response to the result is making me look a bit silly. However, I genuinely felt the results were better than I had expected. Apart from the strong Star Vegas EBITDA (although admittedly the higher than expected win contributed) it was also pleasing to note the improvement in the Aristo win rate. I had been a little concerned about this until the result. In situations where the win rate is always low, other reasons for the low win rate may need to be investigated. Though I imagine the company would be watching closely for any corruption, particularly since the directors have so much of their personal wealth in the venture.
As for the share price............ the market will do what the market will do. I am not suggesting that a falling share price will never convey information shareholders should worry about, instead I am suggesting each case must be analysed on its own merits. After looking through the cash flow and change in debt I feel very pleased with the progress the company is making. I think individual investors need to judge each of their holdings on the information contained in releases and try to determine if the holding is undervalued. If it is undervalued and your position is small enough, top up (which I have done). If not just hold and don't look at the SP (though keep watching for announcements that may change your investment thesis).
I first came across this company when I saw it in the PAF portfolio. PM capital is run by Paul Moore (an excellent investor and well worth listening to) and he always says "don't let the market force you to do something you don't want to do". I take this to mean that if you are happy with your investment thesis don't let falling prices turn you into a forced seller. I am a happy holder of DNA and I am prepared to wait a few years (or more) if the results justify that faith. In all situations I try to balance risk against reward and at current prices I feel DNA is a good bet (pun intended). This situation may or may not work out so stick to sensible portfolio limits, spread your portfolio over other stocks you feel are underpriced and stay in the market for a few decades - I think you should then do well!
I should disclose that this is one of my smaller holdings in a 22 stock portfolio, so I probably should consider this when I suggest holders remain relaxed. If I had a 20% portfolio holding in DNA I may not be quite so sanguine. Also at 34 years of age it is easy for me to say "decades", I realise if you are nearing retirement you may not have this luxury.
That is my 2 cents worth.
Andrew
(20min delay)