I know you don't believe in timing the market, but this one...

First 95 Last

Share
Profile

Follow
andy777

259 Posts.

54

09/01/19

21:16

Post #: 37073695
Share

Originally posted by madamswer: ↑

I think that one of the most valuable thing we private investors can do is to re-visit our investment theses that were formulated at the time we bought into businesses (not just where we got it right, but of even more value, where we got it wrong).

In CYB's case, the essence of the investment case was that, at Price-to-Book of 0.5x, the stock was price like ROE would remain at the then- paltry 5% level to perpetuity. Despite management's clearly articulated strategy to drive down Cost-to-Income, and hence, ROE.

With ROE now approaching 10% (which probably close to CYB's level of sustainability), and with the share price having responded, resulting in P-to-B approaching 1.0, it looks to me like most of the investment out-performance that was envisaged, has been delivered.

Accordingly, I have been selling my CYB holdings in recent days.

Of course, no investment thesis goes exactly to plan: in CYB's case there were some major seminal events that happened over the past 2 years, namely Brexit and the acquisition of Virgin Money.

Personally, this investment has reminded me yet again of the value of focusing on the underlying performance of the business itself, and not being fazed by un-forecastable, extraneous, macroeconomic events over which management has no control.
.

Expand

I know you don't believe in timing the market, but this one worked pretty well. Just rereading the CYB thread as the valuation appears more favourable now and it is of some interest to me.

CYB Price at posting: $3.38 Sentiment: None Disclosure: Not Held
1 Upvote

0 Great analysis

Reply

Top Stories

History-making uranium sample grades and an imminent drill run. Infini Resources is poised to transform in 2025

AXP

Tambourah chases gold veins and mineralisation extension with drilling

ACW

This biotech stock raised $11M in a risk-off environment. Its Alzheimer's drug could change the game

MIN

MinRes's Ellison knows he screwed up – for that reason, hunt for new Chair to be sped up

WC8

Pan Asia rebranding to 'clear confusion' after bagging $35M for Chile projects

There are more pages in this discussion • 2 more messages in this thread...

First 95 Last

Add CYB (ASX) to my watchlist

I know you don't believe in timing the market, but this one...

Top Stories

History-making uranium sample grades and an imminent drill run. Infini Resources is poised to transform in 2025

Tambourah chases gold veins and mineralisation extension with drilling

This biotech stock raised $11M in a risk-off environment. Its Alzheimer's drug could change the game

MinRes's Ellison knows he screwed up – for that reason, hunt for new Chair to be sped up

Pan Asia rebranding to 'clear confusion' after bagging $35M for Chile projects

Featured News