Club Mulgoa

Tuesday, August 02, 2011

SFR

Charter a plane and fly a bunch of fund managers and reporters to your mine to highlight how good your company is. And voila!

But if you are a plodder and only reveal your goodness by announcements via the ASX, then you can be f*(&ked. Today, in the midst of red, SFR jumped because the blindfold has been removed. But as a contrarian, I hope more of those people in THAT plane stay blindfolded for the other stocks that I plan to buy!

I am onto 140% profit with SFR (excluding earlier trading profit) which is not actually brilliant considering I was on SFR email list long before I became a shareholder. And because I didn't have enough dough, I had to sell some of my original SFR shares at a higher price ($3.64 but bought at $1.86, 7 months prior) to buy the SPP (at $3.20) in March 2010. Of course, I would have been smarter, retrospectively, if I didn't sell any. But there is only that much money one has and borrowing to invest is generally not my scene. My margin loan is trivial and easily serviceable. Never be greedy and borrow to the hilt to invest. It is more stupid than dangerous.

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