iii post29 Jun 2016 20:47
Re: The Argyle Re: Over Reaction
The ArgyleInteractive Investor client
Yes I can see there may be a need to raise cash with a rights issue in the near future but I was in this share back in 2009 when the price dropped to similar levels, I bought a good chunk then and there was a rights issue, I doubled my holding for a similar investment and sold a few years later at a multiple of 5.
I have known this company for a long time and I understand how it works. It is going through the mill right now but the fundamentals of the business have not changed, it is better than its competitors, who are also suffering, so it will do will when there is a recovery. The difficulties of the last couple of years are now in the past, the over stock situation is being rectified, which will produce more cash and work on improving the profitability will improve the quality of the business. It may drop a little more but not by much, if at all, and when it does start to move up it moves quickly. I know many people who work for the company and they have all bought shares today, as have I, I am confident but this is all IMHO.