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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 !

 

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