My thoughts are that a poorly managed stock could be a takeover...

My thoughts are that a poorly managed stock could be a takeover or merger target if someone thought that they could manage it better. Additionally, BOQ is not a big four and so it lacks scale. A merger could add the scale that it needs and, you would think, it would be more likely to transition to better management than to transition to poorer management.

My strategy from here is to collect dividends and to wait but not with high conviction.

I sleep soundly even with this dog in my portfolio. I worked out how much BOQ would need to fall to negate the performance of the rest of my portfolio this financial year. It would need to be an epic fall from here. An epic fall literally means a fall that you could write a Greek poem about.

My takeout then is that it is somewhat inevitable that you would buy into a dog from time to time, but diversification wins out every time. Mind you, a portfolio of dogs would not be diversification, per se, but a risk spread over several dogs would be better than the whole placed on one dog.

A merger into something that can achieve 'scale' would be nice. A take over from better management would be welcome. An improvement in the macro could happen sooner or later but looking less likely in the short term.

IMHO DYOR