@Shapeshifter ... me too. I added a further 20% today in RL.
Interesting to notice the weakness in the commercial channel read in the BP note posted by @edgescape, and I am not comforted by their reliance on EV charging and data centres, and the upgrade tweak due to WACC to nudge the the PT ... $6.00 to $6.20! It makes me wonder what the motivation for the research note is (Pump...?),... as otherwise the content appears inconsequential.
I have been puzzled by the 20% fall since FY results and the 14% fall in the last week or so.
Non-Exec Andrew Moffatt sold down a sizeable proportion of his holding in mid-October, for "a rebalancing of his various portolios" ... whatever that means. However, CEO Michael Sainsbury and co-founder Mohamed Youseff have been pocketing 100% of their performance rights as shares, adding to their positions, which are significant in the case of Youseff.
And of course, there are all the IPO shareholders sitting on sizeable gains, some of whom will be wondering when to exit and look for juicier returns elsewhere.
In any event, I imagine we'll get some kind of update on Tuesday next week.
As you say, the valuation is undemanding and the thesis rests on the long term electrification of everything. I really like how the acquisitions fit together and I do see the current SP weakness as offering opportunity. CMI looks like it was a good deal, but, again this will become clearer over time.
Just hoping the sell-down hasn't been informed by shareholders who know something we don't. Tuesday will provide some answers, one way or the other, hopefully.
Held: RL and SM
