idpickering wrote:Well my fellow Lemons, now you've had a sleep on this, what are your plans regarding your IMB holdings? Disappointing though the fall in sp yesterday was, I'm not going to panic, and am going to just hang onto my IMB shares. I hold them in my HYP, and I had reached my spend ceiling on them, so am not keen to spend yet more on them. Funnily enough, today a large dollop of cash from dividends received this month gets invested in my ISA, and I toyed with buying more IMB, but have held back from that. It was hard to not just buy more IMB I can tell you!
Ian.
I set a stop loss to sell 50% of our remaining shares if the SP falls below £16.35.
I calculated as follows, that our remaining IMB were purchased at an average price of £27.26 (yeah, I know, but bear in mind, we only started this investing lark back in March 2018), and then I observed that if they fall to £16.35 then that position is now down by 40%. For a share with dubious growth characteristics, frowned upon management, and an ability (I did quickly squint at their c/f and b/s of 2017/2018 and I'm not 100% sure why *) to bleed cash, I think that is reasonable portfolio management.
As cited earlier I would really like to have diversity in our folis, and being ex smoker (from several decades past!) I'm aware however "evil" (to some) nicotine addiction is perceived, there will likely always be a demand for IMB products. How well their medicinal cannabis ventures pan out is another matter? How large is it in their portfolio? Risks - i.e. use of medicinal cannabis is
still unproven in terms of mental health.
So our stop loss configuration is really defensive, we are not HYPers, appreciate the diversification of having IMB, but need to manage our money. (FWIW, we lost out on a couple of aims of late, Burford Capital BUR, we sold out, and Advanced Medical Solutions AMS, we cut 70% back).
Matt
[*] It looked like from 2017 to 2018 they should have actually added a small amount of cash to their Retained profits. Perhaps they've lost absorbed this in a hedging/currency loss. Not quite sure.