The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
GG - I highly recommend against borrowing to buy shares. There is a fine line between investing and gambling and it sounds like you have crossed it.
Consider this - if the SP dropped 50% from here or went to zero, then what? Absolutely crazy to use an overdraft/ debt to average down IMO.
A lower average might ‘feel’ better in the short term, but if the SP turns against you…
Gains in the stock market are made in months and years, avoid short term gambles IMO, often they end in losses.
So, we have the institutions on board, are funded for the next 2 years and if the dollar keeps its downtrend V prices might be on the rebound now.
What does everyone think are realistic price targets for the future if V goes on a run and given the recent dilution…I’m hoping 15-20p might be possible, but could it go higher even with the additional shares?
I know plenty would be happy for us to get to 6p, but honestly that’s the minimum I’d expect.
HMHG - I guess all those II's in at 3p we're wrong then weren't they...
To be honest I favour the odds of the SP going higher than lower in the mid term and anyone that doesn't is going against the smart money here.
Each to his own, rest assured you'll always be a bear when it comes to this stock.
You see, the problem with this one is there’s a lot of retail investors entering the trade here at or just under placing price. And they all likely have the same idea ‘I’ll buy here and wait until it x2 or 3 bags and get out.’
It’s a crowded trade. IMO A retail trap, and a good one indeed.
You dont make make money following the herd, so I’ll happily bet against it here by not entering a trade at this point and taking a punt we see lower. Worth a punt at capitulation lower, assuming He1 can continue as a going concern into next year.
@ Faramog and V1per: Dont beat yourselves up, you could not have foreseen how things would turn out. It's a lesson for us all to not invest based on narratives and 'jam tomorrow'. At least we dont have that bs with Craig - it's all straight talking and no fluff or pie in the sky stuff with him, so at least we are on the right path now.
Worth considering that the presentation today was scheduled for the same day as the December Fed interest rate decision, with the BOE one tomorrow. I’d imagine there’s an element of wanting to wait until these two rate meetings conclude before wading in again here, but just my two pence.
I'd imagine they would only sell if they had to or if they were pessimistic for the prospects of the business. The premium placing take-up tell's me that II's are bullish on the future prospects for Bushveld.