Just thought I would add to your great post with a story of my own.
I first began investing in 2004 when global markets were smashing all time highs and making money was almost as easy as shooting fish in a barrel. Happy days were upon us!!!
Between 2007 and 2010, I accumulated a large position in a junior mining company that ticked all the boxes and had huge potential for explosive growth. My research was comprehensive and I was in direct communication with the company at regular intervals. Despite enduring the effects of a 10:1 consolidation, a massive equity raising and the GFC, my convictions remained strong.
Unfortunately, the mining downturn resulted in huge delays that turned weeks into months and months into years. During this time the value of my shareholding suffered considerably until finally, after 7 years of patiently waiting for things to improve, I was forced to sell out in 2014.
I went from being more than $100k in profit to realising a loss of $97k ($200k swing). Needless to say, it was hard explaining that one to the wife!!! Thankfully, I was able to recover some of my losses through tax, but nothing dents the ego more than losing such large sum of money!
After being so focused on my investments for such a long period of time only to end up in negative territory, I had to take a year off to try and overcome the anger, frustration and anxiety I was feeling as a result.
Nowadays, whenever anyone utters the words "patience will be rewarded", I reflect on those 7 long years of waiting in vain with a heavy heart and remind myself that no amount of fundamentally sound research can provide any guarantees in the share market.
Fast forward to today and whilst I've only been buying KPO since October last year, it's still early days so we need to give our Management team the opportunity to develop the revised business strategy in what should be favourable ongoing market conditions.
At this point in time, I'm down about 40% on my investment in KPO which is a real concern but clearly the result of post CR profit taking from Hartleys. Call me a fool but I am confident that things will improve soon. If we consider the potential downside risks with KPO, I think there is a compelling reason to remain invested here.
- It is reasonably safe to say that the Hainan plant will be completed at some stage.
- Upon completion of the Hainan plant, it is unlikely that Sinopec will not consider additional contracts.
- As far as we know, the company will not require additional funding therefore the threat of dilution is minimal.
- Unlike fossil fuels, renewable energy has a bright future.
- Kalina is a proven technology with operating plants across the world.
For these reasons (and others), I am willing to accept the possibility of history repeating itself and I will continue accumulating KPO shares over the next 12 months.
Cheers all and thanks for reading my post
KPO Price at posting:
6.8¢ Sentiment: Hold Disclosure: Held
(20min delay)