APA Group (APA)
Hi MM, Is APA Group (APA) a "buy the dip" or catch a falling knife at current rates? I see you hold it in two of your portfolios. Cheers - Mick.
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Answer
Hi Mick,
An interestingly put question. Generally when we say “buy the dip” its with reference to a stock that’s in a uptrend, unlike APA. However, utility company APA which MM have discussed a number of times over the last 6-months has been trading in the $6.50-7.50 region since October, albeit with a downside bias going back a few years, hence for the sake of phenetics we wouldn’t call it a “falling knife”.
However, moving on from playing with words we continue to believe APA offers excellent value as it tests its multi-year low but caution, we have been too optimistic so far, and accordingly don’t plan to increase our exposure across our portfolios. If we did not own, we would still be a buyer at current levels, though some patience feels required.
