I've been a holder and accumulator of TRY for some time, for a long time during 2012 I was 100% in TRY, but last week decided to sell out completely. I have been in and out of TRY over the last few years and love their story and potential.
I took a 15% loss on this last "in" period. Why did I sell at a loss?
In my view the stories coming out of Argentina aren't improving with supermarket price controls and advertising bans recently being announced. So on top of the default risk on the sovereign debt there is rampant inflation and a government taking short term steps that will only route the economy. This doesn't significantly impact Troy, as has been pointed out on this thread, however it does increase the risk assesment. As government's make increasingly bizare decisions the risk of them doing something that would destroy significant value for Troy goes up. In short the sovereign risks were more than I could risk.
When I add the sovereign risk to the gold bears winning on holding the price of Gold down and the recent lacklustre quarterly report from TRY I reckoned there was potential for TRY to go back to the 2.50 - 2.75 area and I couldn't hold through that kind of loss.
I sold because I am in risk minimisation mode. Everyone has different risk threshholds, mine was triggered.
One man's story, but I hope it helps.
TRY Price at posting:
$3.12 Sentiment: None Disclosure: Not Held
