Forum Topics Coronavirus
MarkB
5 years ago

Hi Andrew,

Thanks for the reassuring 'Stick to the Plan' blog.

At what level would you look to get back into PME ?

High quality business, for all the reasons you outline -> but valuation always been the challenge.

Keep up the great work, through this extraordinary time.

Cheers
Mark 

0
Strawman
5 years ago

Hi Mark -- PME definitely starting to get interesting again. My general view is that the business will be very successful over the coming decade, but a lot of the value is represented by cash flows that are several years down the track and beyond. They'll also likely see a slowdown in sales and implementations during the pandemic. So shares probably good value on a 5-10 year view, but like everything, could easily get a lower yet. Worth remembering that shares are on a forward PE of ~70. My plan is to buy a little here and there over the coming months, but would prefer a $12 handle before i was tempted to take a large position.

0
AlphaAngle
5 years ago

In a recession everything gets shot but quality gets shot last. No rush.

0
Strawman
5 years ago

Some more recent thoughts on where we are at, and how I intend to react. Would very much welcome any other perspectives.

https://strawman.com/blog/stick-to-the-plan/

0
Strawman
5 years ago

No doubt that timing things well will always yield the best results, I just can't do it -- so for me this is the next best thing.

0
Strawman
5 years ago

Rsk is not about the chance of short-term loss. Risk is the prospect of a permanent loss of capital. In a bear market almost all shares fall, but it’s the ones that never recover you need to be worried about.

Here are three stocks that have fortress like balance sheets: click HERE

Of course, share prices could well fall a lot further -- I'll let members post their own Strawman Valuations -- but the underlying businesses are very well placed to weather the storm.

0
Strawman
5 years ago

Wow, what a start to the week!  Stay strong everyone.

0