You may be kind of right, but also very wrong. I did invest in the float. I did look at their track record, understood that they were a punt fund that had done very well and also understood most of their investment alpha had been derived from smaller caps and potentially resource stocks. I was also told by said brokers that because of the smaller size of the fund that it would most likely trade at a small premium to n.t.a. So, many lessons, which for somebody with a few decades as a fund manager was sobering. I don't condone any of what they did or the way they did it, but I also don't think that they are not capable of replicating what they had done prefloat.
I have sufficient hope in what they can do, that I am prepared to give them the time to see if they can deliver as expected. Market movements are what they are. Plenty of growth stocks go up the escalator and then back down the lift, set, then repeat. Some keep going, aka CSL. Some don't aka SYR. Some are just plain scary aka MSB. I own them all for different reasons. I own these guys for a different reason. Arrogant, brash, highly incentivised. Thats exactly what you want out of somebody thats trading for you. I want the currency risk, the leverage and all the other bits that go with it because it is too time consuming and difficult to do it myself. I also want the returns!!!
Like a lot of growth stocks, a set back is exactly that, a setback. It doesn't mean that the model or idea doesn't work. Things frequently don't work out the way we expect. This was another one.
The NTA will be back at $2 after that last few days of movement so as long as the US market doesn't melt down tonight we should see that next week. The share price unfortunately not so much, but at least they listened and are doing something about that.
This thread is called what it is for a reason. They have done pretty well over the last 6-9 months. For now I will put their start down to arrogance and teething problems. Pretty bad ones but at least I can kind of laugh about it now.
As I have said before, I want the returns, the bigger the better. It won't be a straight line. I am happy to give them their time, and to pay their fees, but in return I expect them to Show Me The Money. I hope this may form part of my portfolio, and if it does a valuable part, for many years. If not, I will be gone like many others. They can be fired any time you like. Its called selling.
Reality Check. I want what it may bring and am prepared to accept the escalators and lifts and exorbitant fees because I also am greedy. For others it may not fit or is too troublesome or stressful. Remove it. There is a choice. If you have bought a ticket enjoy the ride, or get off.
LSF Price at posting:
$1.54 Sentiment: Buy Disclosure: Held
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