Surely you don't believe the market always gets it right? If so, how can anyone add value by stock picking?
The trick is to know when the market is diverging from reality. Anyone who claims to get it right all the time is certainly singing off the Bernie Madoff song sheet, but some people are able to get it more right than wrong.
Those who trust their own judgement more than the market's can enjoy price weakness, even if they bought a parcel at higher prices. You buy in because you see upside. If that hasn't changed, then lower prices just increase the upside.
The real art is risk management and knowing when to capitulate. Being wrong sometimes is inevitable, but assuming you are wrong every time the market swings against you is a recipe for disaster. At this stage, FML holders are beginning to see benefits of work done. Of course a mis-step could undo all the good work, but that is true for all stocks, all the time.
I was particularly impressed by the lack of leakage around the CRE takeover. This kind of integrity (from all parties involved) gives me a lot of confidence in trusting my analysis more than short term market movements.
FML Price at posting:
6.7¢ Sentiment: ST Buy Disclosure: Held
