Interesting @Dominator Thank you.

I have noticed that PNV seems to be recovering quicker from these SP plunges. Company is obviously in a much better position. And will only likely improve.

I think you are right. I should trade a portion of PNV (and some of my other holdings) and benefit from these large SP swings.

Do others here have this approach? Hold say 75% long and trade 25% on the swings?

@Parko5 I'm moving more and more down the path of trading a percentage of a position to take advantage of the swings in the market given those numbers. I've come to a conclusion that you don't have to be all in or all out but can trim and/or add to a position over time. I like to build a position over time as well.

I add a "momentum" overlay similar to the QAV concept of 3-point trend lines if you have listened to their podcasts. If in an uptrend wait till the share price turns to the downside then trim and for a downtrend wait till there is an upswing again before buying.

Many of my mistakes have occurred when I thought the market is wrong, so I jumped in on a falling knife/contrarian position. This is a system that makes me wait for the market to give me the signal to buy/sell. In saying the above I guess it's down to your personal circumstances in a way as well, what's your opportunity cost of holding cash at times? I can put the cash on the mortgage so it's a 6ish% after tax return with no risk in terms of opportunity cost.

Hi @Parko5 as I've written here before about $PNV, I have traded it a few times. but only when it flies up way beyond my valuation. My bias is to hold it for the long term and not pay any attention to SP volatility which isn't driven by fundamental business performance.

In 2019/2020 I was accumulating $PNV between $1.32 and $2.45, and I started offloading in late 2020/early 2021 between $2.84 and $4.01. At that time, this was significantly above my range of valuations. By mid-2021 I was all out, and didn't re-enter again until later in 2021. My current RL position has been built with purchases anywhere between $0.86 and $2.41.

I did lighten about 25% in late 2022 at $2.04, as part of becoming a little more risk averse with my portfolio overall, but then I bought those same share back in late 2023 at $1.13. That selldown was nothing to do with $PNV as a business, but buying back in at $1.13 definitely was!

Today, I would be prepared to sell $PNV but only around $3.50,...maybe I'd lighten a little before that.

That's because my current range on valuation is about $1.80 to $3.50. I know that's a really wide range, but I think it reflects the uncertainties regarding how long it sustains the growth trajectory, whether and when the platform builds out further, and the competition over time.

I don't want to risk some short term profit taking with the risk that the next day DW comes out with a record month, a storng trading update, a big deal in India, or a FY profit that beats expectations and that the SP jumps out of reach.

$PNV has been a great trading stock because it has sustained high revenue growth, while also spending a long time around the profitability inflection point. So, from a financial perspective, it is a low quality stock and we should expect it to be volatile.

Everyone has to decide their own approach, and this is mine. But it does mean I have a RL postion of about 8% for which I have only invested about 3% of my capital.

I know it creates buying opportunities etc. but philosophically I don’t like these manipulators making money from these markets.

it has been happening since markets were invented. I remember reading about Jesse Livermore around. The turn of the century in 1900s. And all his tricks to test he market or push it in a certain direction.

but with the technology we have, and laws we have today, we could stop this. And make sure that capital is going where it is intended.

btw. I’m not against shorting. Only manipulation.

What an interesting video.

I always thought Cramer was kinda a knob…now I know he’s a psycho.