Taking my medicine on Applicances Online – closed at 188 today for a 17% loss (1% of total capital). (I doubled the size of the short in September at what turned out to be a mediocre price).

Trading statement today shows an increase in revenue growth rate at a higher EBITDA Margin.

I personally dont think such performance can be continued but whilst it is the current price can be – to some extent justified.

In addition I have noticed that AO was strong during the market dislocation in January and February.

 

I am very aware that stocks like this can be driven by sentiment and I do not want to be on the wrong side of this.

Somewhat frustrating as I think the stock is a dog, but I dont want to loose too much in proving this.

Its not all bad news – looking across the portfolio – SMIN is up, TRB up almost 80% in a couple of months, FFY is up, SIHL – I seem to have added quite low, TJI is up a bit too, DUPD worked out.  In fact the portfolio as a whole has never been so valuable – up 3% for the year so far vs -2% for the FTSE, including the complete write off of RHM (8% of portfolio) – due to delisting, even though it has a positive NAV – so I should eventually get something back.

Still I am not going to get rich growing 3% per quarter so I hope the next two quarters offer more opportunity than the last…

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