Full Disclosure I hope those who have read my posts this past year appreciate I am sincere. No reason to spew BS.
This CIBC analyst report knocked me back on my heels last week. All of my own digging had me coming to similar conclusions to what ProfC and gottahunch were saying...though I thought 120M to be optimistic.
I have 30K APHA shares free and clear. It is not my only stock not my only investment (real estate and even some GICs).
I bought 20K shares on margin last Nov (average price was 14). Sold those at 8 during the short attack. The math was not pretty. Loss of 120K on that alone.
Long story short...despite my reluctance to ever buy on margin again, gottahunch’s ‘what am I missing’ post gave me the confidence and I went ahead yesterday and put a buy order in for 10K shares at 6.80. Of course it filled on its way down when Trump tweeted (I just wish this guy would stop the gunslinger negotiating tactics). Yikes.
Needless to say I listened intently to yesterday’s conference call.
I have enough carry forward of realized losses from last year, so sadly, capital gain is not an issue.
I do not wish to carry this margin for too long. I set a 14 dollar sell order (logic is this is what It was averaging in April). However, if I sell for 18.80 I would actually strike that 120K realized loss from Dec. That would be insane.
To those longs on gottahunch’s list, what do you think? Pay the carrying charge on 68K dollars and hold for longer or take the quick gain on this win.
Sincere question.