Club Mulgoa

Sunday, April 01, 2012

Portfolio "loss"

I was asked by the accountant I sleep with, why her portfolio has suddenly crashed. Took me a while to respond. The market hasn't been kind to my mining stocks and I have rarely topped up my blue chip or industrial stocks. I might be a contrarian, a brave-and-dumb investor with no accounting background and invested a lot BEFORE the GFC, but I can't be that bad.

Well, the reason for the more than average plunge was because EXT is no longer traded. CommSec automatically remove it from my portfolio. I bought it for a song at 9.4c. Because the company became a uranium sensation with more and more uranium uncovered in Namibia, the company made consolidation of 10 shares into 1. Hence, I paid the equivalent of 94c in 2006. I am now waiting for my check from a Chinese company which has taken over EXT for $8.65 a share. A small parcel was bought as an entitlement in 2009 at $7.75 a share.

I never recommended this stock because even I couldn't buy more of it in the earlier years because it kept rising out of my comfort zone.

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