August,
I really agree with your thinking. In this case,
however, if you look at the fundamentals of
the company, there is value. Not only that,
but in a turn of events that happens only
every so often for a buyer of value, there is
a catalyst to realize that value. This catalyst
is privatization. Downdrafts not spurred
by changing fundamentals should be seen as
opportunities to average down. If the
panasian currency panic hits Latin America,
it will be short-lived, fueled only by speculators.
Technically, if it closes below 120 today, there
will be a lot of technical selling and shorting
going on. Bothersome, but not a problem
to the patient and well-capitalized investor who takes
opportunities to average down in stride with his/her
eyes 2-3 years hence. Margined (undercapitalized )
players should not be long the stock.
Good investing,
MIke |
