On Thursday last week the stock market fell 3 per cent and the Punter's portfolio still ended 5pc up on the week.
This was due entirely to three stocks. Musgrave Minerals (ASX code MGV) continued to power ahead on the basis of exceptionally good results on its WA gold prospects.
Wide Open Agriculture (WOA) was up another 34pc, after expanding into the plant-based protein market and a successful $3-million share placement.
Beston Global Foods (BFC) doubled in price overnight on the news that it had sold its dairy farms for $40.4m cash and a guaranteed milk supply for 10 years.
But the market's sudden sharp fall has rattled the Punter, who feels enthusiasm during world wide recession is irrational.
He is still showing a loss on BFC, but has sold anyway, partly because the farm sale will go to the Foreign Investment Review Board for approval.
The buyer, Aurora Dairies, is part-owned by the Canadian Public Service Pensions Investment Board. Approval should be a formality but could take six months.
MGV shares are still rising at the time of writing, and the gold price is up, so they stay.
The profit on WOA is too tempting. The Punter sold his last WOA for 3.4 times what he paid for them.
Also out are CleanTeQ (CLQ), Australian Dairy Nutritionals (AHF), Keytone Dairy (KTD), Terragen (TGH), Trigg Mining (TMG) and Australian Agricultural Co (AAC). All remain on his watchlist, with the aim of buying back in if prices fall.
Last week's market drop may be a knee-jerk reaction to the Organisation for Economic Co-operation and Development outlook forecast, and the Punter could look silly in a month's time.
But shares in major Australian companies are still selling on average for 17 times their annual earnings, which is above long-term average price earnings ratio of 15.
- 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.
