suf.to - news out, Messina plant commissioned, ahead of schedule and under budget
Wow, LF, 74.6% of your collection in one share? .... i would never do this ... Southernera is a fine company with outstanding fundamentals and quality of management, yes, but ... that's a big BUT - things can go horribly wrong with any project at any time, this is just a fact of life and applies to all ... and with suf, there is major political risk, we have no way of knowing what politicians there will decree, or when .... that's why it's so cheap in relation to its upcoming cash flow, it will never in our lifetimes get its political risk discount shaved back to that of a comparable producer in the Americas, and even here there is political risk .... but never mind which stock, under no conditions would i ever get that heavy in one item, period
It is a rare case when i let one share approach 25% of pf, usually only short-term and with my finger poised over the sell button .... there have been times when one went way over that, once with jdx.to in the winter of '99-'00 for instance, but that was a function of having relatively little in stocks as a whole .... for years i've used share accounts as savings accounts, always putting in and withdrawing, don't keep much beyond thirty days needs in chequing, ever .... many would call this nuts, but i've had luck with it overall, some spine-tingling crunches and had to take a few losses though
If you have a major portion of net worth in the market, i'd suggest you diversify ... for me right now stocks form maybe 30-35% of n.w., and real estate 105-110%, something like that ... totals above 100% due to the magic of credit .... hard to pin down as you never know precisely what real estate is worth until you sell it
One time i had around 110% of net worth in six canadian chartered banks, took the proceeds from sales of land and then margined it, quite confident banks were undervalued .... second piece of land was ready to buy banks the morning of 6 Dec '96 when Greenspan's irrational exuberance speech tanked everything, saved me near ten per cent average on entry, i got filled well below the bids i'd put in the afternoon before, ten days later they'd all put on fifteen per cent -ggg- ..... can't depend on luck though
Being diversified outside of mining, i don't see the need for that right now .... btw, where's your exposure to gold? ... platinum is up twelve bucks right now though, better than gold, you'll love that -g- .... i would never presume to advise anybody, and cannot imagine selling suf right now, convinced that it is about to break upwards on its next leg, but i'd just never be three quarters in one issue, is what i'm saying ... later, cheers
[edit] - it is true that when one runs up you sometimes get very heavy in it ... i think on acb terms, 'adjusted cost base', much more than on valuations at the current bid .... because suf recovered from my mid-august entry, it's over 25% for me too, maybe quite a bit more, haven't figured it out |
