I thought it was time I revisited my semi-regular email correspondent regarding his Sky City Entertainment [SKC.NZ] holding.
I am using this readers experience as an example of what real people are doing and how they are reacting to the current economic and stockmarket turmoil.
It is a good learning experience to see what others are doing and how they react in these kinds of stressful financial situations.
I had first correspondence from him early 2008 regarding his holding and then in July when he asked whether it was wise to hold this company that he bought for $4.30 and was holding now and had ... "lost a fair amount of money."
I answered that the company was solid and should perform well during an economic downturn, or words to that affect.
I didn't advise him to sell or hold (I don't really advise, I just point out what I would do and that every individual has different circumstances and therefore should probably make their own decisions) just what I would do and as most of my regular readers will know I have a reasonable holding myself and still hold at a cost of NZ$1.925 per share.
Well you might be glad to know that my correspondent has kept his shares, which I must say requires big balls in today's market, even though he expresses an element of "fear" when it comes to investing and the stockmarket-as indeed I do myself and most of us out there would also if we were honest.
He also ponders whether he should "take the plunge" and buy additional stocks considering the poor returns coming from other types of assets.
As an addition to that he asks whether I will be using the current season of dividends-around NZ$8000.00 I would expect- to reinvest back into the market.
My answer to that would be a big fat NO.
I am keeping them in anticipation of even lower share prices and will be reassessing the situation as this horrible year slowly moves on.
The last time I purchased stocks was back in July 2008 when I bought two very small holdings of a couple of retailers. My ASB Securities trading account is now firmly closed.
For now.
Recent Share Investor Reading
- Bank Guarantees: Time for New Zealand Banks to return the Favour
- Digging at Pumpkin Patch's lower profit
- Warren Buffett's Letter to Shareholders due this week
- Sky City Entertainment 2009 Interim Profit Review
- New Zealand Financial Oversight bodies fail Blue Chip Investors
Related Amazon Reading
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c Share Investor 2009
