RE: Sp24 Nov 2021 19:49
This is my worst performing share. Annoyingly, as the company name starts with the letter A, every time I open my screen, it’s in my face, reminding me of my folly.
I bought in when the SP dropped to circa 350. I liked the incentives being offered to employees if targets were met by 2025, thinking that would encourage good productivity, and entice quality staff to a company that had performed exceptionally well throughout the pandemic. The idea of expanding across Europe, and keeping the momentum going appealed to me. I thought the SP drop was a temporary setback, and they would be pushing on from there.
Now, with the share price hovering around £1, I am questioning quite what to do. Can the staff believe there is any chance of this share reaching £10 by 2025, to get their bonus? How did the workforce feel about this position? Does the management team that was capable of performing well during the pandemic when others were unable to do so, have the capabilities to turn this mess around now, with a different new set of circumstances to contend with? My initial motivation for buying in was capital growth on this particular share, and unless I am mistaken, there is no dividend to compensate me whilst it fails to perform.
Do I sit tight, hold and wait for this to recover; or do I throw the towel in, cut my losses, and buy into a share with a decent dividend yield? Crystallising losses is something that really hurts and I don’t like to do.
I’m undecided. I am sure there are lots of you in a similar position to me, sharing the pain. Is there a predator around the corner thinking of buying in this business, thus pushing the SP back up again – I really don’t know the answer. Any thoughts would be most welcome.