Please understand that we are not investment advisors; of course, we do not know your personal situation and your tolerance for risk/reward cases like AVIC.
However, from our own 40 years experience as a small-cap investor, we offer the following homespun philosophy: when faced with a decision, especially at tax-selling season, whether to take a loss or increase your position, ask yourself whether the ruling reason for your initial purchase is still valid or has been invalidated by subsequent developments.
If the fundamentals have deteriorated, do not hesitate to liquidate your position. On the other hand, if the story is the same (or better), stand fast and consider adding to your position at depressed levels. Bottom line: earnings drive price performance, but each company grows its earnings at a diffferent rate, sometimes disappointingly slowly.
In terms of real substance, AVIC has made impressive progress in recent months towards fulfilling its promise as a unique infrastructure play in the world's fastest growing major economy. You are free to draw your own conclusions. |
