MM call to ‘Cut Losers’ like MFG, KGN, APX

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Question asked 08/10/2022

MM call to ‘Cut Losers’ like MFG, KGN, APX

Thanks for your mention today of 3 'losers', MFG, KGN, APX, which are down varying amounts from about 40% to 70% from the prices at which MM once suggested them as possible 'Buys'. Are you suggesting that subscribers who purchased these stocks at the significantly higher prices that applied during a quite different economic (psychological) climate, should now 'Cut' these stocks at their current greatly reduced prices, or is some other action plan - say, waiting for some upward price movement as the economic situation stabilises -- more preferable?

Answer

Hi Gil,

The question came through late Friday so just crept in. We try to wrap Q&A for the week by midday and any questions after that will flow into the next week.

Three tough stocks. We have grave concerns for Appen (APX), Magellan (MFG) I believe is about to release a strategy update, cost reduction targets and the like, however we liquidated our position a while ago and bought Pendal (PDL), which is also depressed but has lower risk upside in our view, while Kogan (KGN) actually looks interesting here, and we are more positive from this $3 area.

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