I've been away a few days. Actually, to be honest, I needed a break from watching ALF daily, and worrying about the falls. I spent the last of my savings on buys at 1.31 and $1.34, and are now pennyless. Each time I purchased more, it seemed to drop and drop, from my first buy at $1.48!
@jam321, I think you are right. I understood ALF somewhat before investing, but not fully and comprehensively to understand how it moves and invests long/short. I am in mid 30s, and new to LICs, after nearly being wiped out in the GFC from investing in various stocks, and nearly losing a house deposit (luckilydidn't sell out, and waited for somewhat rebound). Some stocks have never recovered from GFC, UGL comes to mind, my old darling!
Anyway, I decided LICs would be better for me than trying to select stocks with limited time. I brought ALF WAM CTN and CDM, recently sold WAM. My issue has been buying more and more ALF with each fall, and they now make up 60pc of my portfolio, and I've lost alot on them! After my last buy at $1.31, with my last pennys, I decided to turn off, give up and come back in 12 months, not invest anymore, as they will only fall more, but to my surprise, 1.30 has been the bottom for now, NTA.
I can't see the need for investing oversees to be honest. It adds risk, much bigger players, currency issues and more research teams. Look at some of the classic shorts of the past 6 months. FMG LNG, any stock with oil or commodity exposure, easy money one would think. Roger Montgomery was predicting this 12 months ago, with iron ore and oil.
Thanks everyone for making the conversation interesting, informative and thought provoking. I also think a few larger holders have sold down on dividend and performance fears, and we will hold around NTA until performance improves, which I think it will.
I'd like to see a company announcement like WAM, who have increased dividend, done a SPP, and are clearly preparing for some bargains and market corrections over next 12 months.
ALF Price at posting:
$1.37 Sentiment: Buy Disclosure: Held
