Up or Down ??, page-4067

nice post Epearce1.
My commentary would be that fundamentals HAVE changed, and those fundamentals HAVE changed to the negative.

But here is the thing, whilst the fundamentals have changed to the negative, the share prices have also been dropping like a stone.

So here is the greater long term thing: fundamentals do move around, right now they are negative, but this won't always be the case.

So this also creates opportunities.

If one can buy when fundamentals are negative, but share price is really crashing on fear, then one day when fundamentals turn positive, those that bought at depressed share prices should see a very decent return on their investment (even if they didn't buy at the exact bottom).

For myself I use absolute intrinsic values to determine my investment strategy. I am factoring in a negative change in fundamentals already, most importantly I am feeling quite relaxed because SWM has significantly reduced their debt over the last several years.

I also know Mr Big Insider thinking, he will start trying to acquire, but this will be doing this when share prices are depressed as it will suit his strategic plan.


Lol like others out there it would have been great if I offloaded a bit more before this price decline, but then at the same time I think to myself, If I offloaded more I would be whacked for highest CGT (I am on top taxthreshold) given I hadn't held for 12 months. I offloaded 10% several months ago as a bit of portfolio rebalancing, but could I have really sold all my position to buy back cheaper??? When I sell I would have paid 50% of my gains in tax. In hindsight, with the benefit of harry hindsight, yes I still would have been better off since SWM is now approaching my initial buy in price.

But investing doesn't work so simply.