Reminder6 Oct 2020 13:10
For anyone easily influenced by the Barwick/ODonnell boiler room team....
Have a read of this wonderful post again from a 6% holder
Afternoon all. I saw that my 6% holding got called out, so I just wanted to chime in and explain a bit about my reasons to buy and hold FFWD at this level.
Firstly the reason for holding just under 3% across two accounts are twofold. Im not mad keen on triggering a TR1 – I’ve done this previously on another share, and it brought a huge amount of unwanted attention; people digging into my background, contacting my employer, trying to find out more about me, assuming I was in some way manipulating things! Im just a regular investor, so the concerns are always completely redundant – but my wife and I could do without the hassle.
I also wanted to avoid a 3% TR1, in case any dilution occurred in future (which I don’t expect to happen at all, by the way), as that would mean id have to post a paper reduction until I could top back up. Those technically forced TR1s usually instil panic in those who don’t associate the dilution as the reason for a lower percentage held.
As for my reasons to hold at this level, it’s simple. I’ve been relatively successful by holding stock in high potential companies before they hit the big time. The only time I’ve lost money is by trading in and out of AIM minnows, trying the odd punt on oil shares etc- when what I really know best are start-ups, technology stocks, and Nasdaq. I work in this space professionally, and invest in what I know. FFWD’s strategy falls neatly into these categories – and for me, it’s the only way to meaningfully invest into the cannabis and wellness spaces, which im really drawn to.
As such, my personal strategy was to build a big stake in a company whose board I trust, and simply hold. The board have a clear strategy of interconnecting businesses, which often maximises corporate valuations, and naturally streamlines the complex processes of going public. I have watched this strategy unfold for a long time, and have been building a stake over many years, since 2016 at least. A lot of my holding is from the 13p range, but doubled down when it hit the silly 4p/6p ranges. I didn’t sell at 30p back in the day, and I fully expect the stock to massively exceed that amount on its next run. Even though I think that re-rerate is very close, this is a 5 – 10 year hold for me, with 10x potential from here, so safe to say these are in sticky hands.
I’m comfortable with a relatively high average too, as I know that there are a bunch of value creating events lined up that will change the scope of what we have invested in. If these happen this week or next quarter – I’m not fussed, as when something drops, the limited free float left will be sought after, and impossible to scale back into in any meaningful way.
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