The Punter has been expecting for some time that the stock market may be about to undergo what is euphemistically called "a correction", or, if you prefer, a tooth-grinding, wealth-slashing slide.
It hasn't really happened. Yet. The Punter is beginning to feel that perhaps he has been a little too cautious in keeping a third of his portfolio in cash.
On the other hand, most of the Punter's money earns nothing even when it is invested in the market. His caution is not costing him anything. With the exception of Australian Vintage (ASX code AVG) the companies he invests in are more likely to ask for more money than hand any back as dividends.
The latest begging bowl is being held out by Australian Dairy Farms (AHF), which wants shareholders to kick in at least $2500 in return for more shares at 13c each.
The offer is only open for a relatively short time, closing on October 10. The Punter suspects that the company will have no trouble reaching its $6 million target. The money is not to a fill a hole in the existing business -- the dairy farms are doing well. It is all about funding the push already under way to transform the company from a bottled milk operation into an integrated dairy producer and manufacturer of premium dairy produce.
The Punter will probably take up the offer, but will follow his usual policy of waiting until the last minute. No point in buying shares from the company at 13c if you can buy them more cheaply on the market.
Meanwhile, the Punter has added two of South Australia's best known, top quality food brands, Paris Creek and Maggie Beer, to his watchlist, in the form of the Long Table group (LON). The CEO is Laura McBain, former CEO of Bellamy's. He has a number of reservations about Long Table, and will watch the relaunch of the Paris Creek brand this month with particular interest.
- The Punter has no financial qualifications and no links to the financial services industry. He owns shares in a number of companies featured in this column.
