Frustratingly changed my mind on Emergent Capital. original post here.
I’m concerned about debt level / lack of liquidity and the fact the company has 9 months (approx) opex on hand. I wasnt right about my initial belief red falcon had liquidity available – I’d misread the statement.
There is an opportunity with the strategic alternatives process for this to do very well but re-reading this – the possibilities are not all are positive. It has also now been over 3 months – should have been done.
Taking my medicine and getting out at about a 10% total loss. Shareprice move down has also unsettled me – and I shouldnt be – if I was really that confident I wouldnt blink and would buy more.
I’m taking the view that return of capital is more important than return on capital….
I realise I am posting just over a week after going into the thing – but I changed my mind and that’s it. I should add I dont necessarily post when I sell – as its not always in my interest and sometimes it is more to do with portfolio management rather than any other reason.
I may get back in if this falls to a level at which the risk / reward is more compelling. Perhaps $1.65 a share.
No doubt an announcement will come tomorrow that the’ve sold the portfolio and are returning cash !