To: bruwin who wrote (63441 ) 3/14/2020 5:27:27 AM From: Nya_Quy 1 RecommendationRecommended By
Read Replies (1) | Respond to This is what often puzzles me .... why keep one's money in a losing company in order to wait for "better times" ? That is "Dead Money". It is not about waiting for better times, it is about waiting for the market to realize the company's equity is worth multiple times its current price. The thesis is that this will happen by the company executing its plans for accelerated debt reduction using their strong FCF generation as well as substantial share repurchases. Again, this company is not losing money and I am ready to wait a couple of years for the shares to go 4-5+x as a results of above mentioned actions by management. If it happens earlier, the better of course.I'd say, at the very least, put it into a USA Bond. At least one is getting SOMETHING from one's investment. Given that live in the Netherlands, I do not think US treasuries are a good idea: currency risk. Dutch treasuries have a negative yield as of now... Savings rate is at 0.01% or so, although I think there should be a strict distinction between money that has to be saved and never used for investing and money that is meant to be deployed at some time. Fortunately, in my current living circumstances I hardly need any savings.If something like TLRD does eventually do a turnaround and its Financials reflect that, then one can then put one's cash into an appreciating asset. If you wait for the uncertainty to disappear, the bulk of potential gains are probably gone also. In other words, to get the large upside you have to be early, pay as little as possible, and hope for the best.I like that old, well worn saying .... "Don't get married to your stocks." Just because I am sleeping with TLRD while people thinks she is too ugly, does not mean that I am married to her. It means I am in at the right spot to propose to her whenever she become less ugly, god forbid, beautiful.-- Nya --
