Two weeks ago the Punter wrote: "the Punter can see no solid reason why the stock market should be as strong as it is. Drought, floods, fires and floods have hit agriculture and tourism hard. Now the coronavirus is an added problem".
Silly boy didn't listen to himself. Did he sell everything and sit on a pile of cash? Nope. Greed defeats gut instinct, yet again. The sharp fall in the market has converted him from someone hoping to make a quick buck, to someone largely locked in for the long term.
He already has nearly 30 per cent of his portfolio in cash. This week he is taking his profit on HRL Holdings (ASX code HRL). Conventional wisdom says cut your losses and let your profits run, but when an overpriced market starts to fall, even winners get hammered.
He is dumping Leigh Creek Energy (LCK) at a big loss, because its ambitious plans for gas and/or fertiliser operations in SA rely on Chinese support - China New Energy owns about a third of LCK and has a memorandum of understanding with LCK to develop underground coal gasification in China.
He is selling Chalice Gold Mines (CHN) because the shares have been sliding while the gold price has been rising. The Punter has no idea why, but he is not waiting to find out.
On a happier note, Buderim Group (BUG) has released excellent half-year results. Net profit after tax up 53pc to $980,000, pushing earnings per share up from 88c to $1.14.
The Punter has put in a cheeky bid to boost his holding to 10,000 BUG shares at a cost of $1217.16 (18c a share), 3c below the market.
Retail shareholders have taken up only 13pc of Murray River Organics' (MRG) rights issue. Thank goodness it was fully underwritten. The shares are due to resume trading today (March 5). The Punter has taken up his entitlement but is not expecting to bank a quick profit.
- 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.
