Thursday

Stocks We Are Down On

One of the best things to do we feel is to review the losers in ones portfolio - the rationale is if ones analysis were correct in the first place, then buying more at lower prices is a great opportunity. So, we reviewed all stocks in our portfolio which are trading below our entry - the thought is if the fundamentals have not changed, then we ought to buy more at discounted prices:

1. Webster Limited (WBA.AX on Yahoo) - Bought at 67c, Now 43c - Down 37%. We bought Webster in the first week of coming online. Here is our analysis on Webster Limited written on 9 Jan 2009. We will not be loading up on WBA - we reviewed the latest financial report and did not realise they had 27m in borrowings (22m last financial year). Cash flow from operating business remains negative (see latest cash flow report below). They are also divesting their holdings in Salmon producer, Tassal to reduce debt from their loss making business. In hindsight we failed Continue…