OT. CA: 29 11/16 down 21 7/16. I would just like to be an observer today at the meetings at Capital Research and Management, Mass. Financial Services, or mutual fund MFS Emerging Growth. According to Yahoo, they own CA in the amounts of 28.5M sh., 25.4M sh, and 11.9M sh. respectively. For Capital Research, that's a $600 million dollar loss today. What would be these investors' strategy and tactics now? Sell? Can't dump the stock. Slowly reduce position? Hold - the stock might come back. Buy more - it was good enough at 50 to have millions of shares of it. Would they buy more? With Capital Research, they already have 5% of the outstanding shares. Would it be a Buffett thing for these guys--- be willing to up the ownership from 5 to 10% or more--makes little difference since if the company is undervalued, as an owner be willing to buy the whole company? Or maybe these institutions or funds don't really lose so much because they anticipated the decline and have hedged with options?
If it were me, and I had 5% of the company, I'd hold. But if I were a mutual fund that had a large position in CA relative to other stocks in my portfolio (large until today that is -g-), I don't know what I'd do. Probably try to listen to the guys who advised me to get in or stay in the danged thing when it was up. If they say it's now a mistake or too risky, I'd want to sell.
What would you Value Investors do here?
Paul S. |
