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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (74961)	1/28/2024 7:18:41 AM
From: Harshu Vyas	Read Replies (1) \| Respond to of 78507

I think this is also fair. Makes me reconsider whether such high concentration in such a beaten down company is the right approach. I know some investors suggest that diversification is incredibly important but I've never seen such a cheap stock with such potential upside (if the stars align). And there's so much time to "get out" - at least a year from here, assuming those cash balances are correct. Plus, with management working 16hr days (from multiple close sources), I feel there has to be some karmic law about working hard and finding success. A young person's naivety? Possibly. Other problem is that my thesis remains unbroken so I'm being slightly stubborn. The moment my thesis is broken I'm pretty sure I'll downsize my position quickly. Too many times last year, I sold for no reason to pursue another stock that "looked" healthier, cheaper or some other illogical reason. But I disagree that I should be "worried." Maybe anticipating the worst and that much of the financials are fake. Tbh, I've spent too much thought about where the problems could lie. Maybe P&E as well as inventory has been overstated. But am I buying because of the balance sheet? No. As for the income statement, what about revenues? There's certainly some cushion that allows for manipulation in the footnotes. But the company isn't even profitable! I'm not buying under the impression that historical earnings have been stellar! And I'm sure the keener analyst may look further, but I think it's a useless exercise. So long as there's a functioning business and the cash balances are true, I'm happy to continue the path with management. That's the skeleton of this investment. Or speculation. Maybe both. Further, cash burn is the most important indicator of this investment pulling through and management have already provided those figures. (Without the rest of everything else, there's an element of doubt but it's useful information in the meantime.) I also disagree that the point in invalid for the rest of the thread. For me, yes, it's irrelevant but for others that may be considering buying a small-calp, leveraged company with near-term maturities and constraining covenants? I feel it's only right to voice my opinion - and if done respectfully, that's a sign of a healthy community. Best, Harsh