#Sell Down Decision - Elpaso96.
A link to his reports on the company can be found here - https://strawman.com/reports/ALC/elpaso96?inc=9380
On the back of your recent post on down-sizing your position due to valuation concerns, I would like to add my 2 cents in additon.
Previously to your post, I had the a similar frame of mind so thank you for validating the thoughts I had on the company. My valuation model now implies that a CAGR of over 20% is needed over the next 3 years to 2024. I 100% agree that the risk/reward is a completely different narrative now the share price has reached 0.37 cents and the market cap ~400m.
The business & management are doing all the right things. Kate has led the team pretty valiantly to where they are now, hopefully soon to pass the inflexion point of profitability. In saying that, a good business does not imply a good investment. I think the risk that continued growth in now priced into the stock is prevelant in today's market price.
In saying that, I'm reluctant to take any off the table at this stage (due to tax reasons). I will keep on eye on my positon and likely downsize should the share price move in an upwards trend given no underlying reason.
Again, thanks for your input Elpaso!
DISC - I hold & have held ALC shares for ~18 months.