Which WAM stock to buy?, page-33

The value of a share to the buyer depends on the reason for the purchase.

If it is a long-term investment, the buyer, in the case of WMI, would be looking for guarantee of dividends (4.7 years of retained earnings), increases in dividends over time & an increase in the share price over the life of the investment. Pullbacks in the share price gives the investor additional opportunities to add to his or her holding.What usually happens to markets is that the first shares to move up in a bull market are the big-cap shares. These are followed by mid-cap shares & finally micro-cap shares including "penny dreadfuls" as they are termed. What follows is usually a market correction.

Consequently, I am looking for the period when it is the time for micro-cap shares to rise before I would consider selling. Meanwhile, I expect to receive an increasing dividend stream. When the share price premium to the net tangible assets reaches an exaggerated percentage, selling becomes an option.