Well didn’t Crawshaw take a battering today. Down 43.54% and 8% yesterday.  This is by far the largest one day fall I have been on the end of and while not great I am ok with it. It took, along with a 2.13% fall from BOO (probably spooked by disappointing update from NXT which seems daft to me) my portfolio down by 0.8% which is tolerable and nothing like the falls in the days following Brexit where half my all time gains were wiped out. All now recovered and then some.

This was always a bit of a punt and a stock that I should never have probably been in. No delete that should never have bought. But we are where we are.

After the fall yesterday I placed a limit order to top up my holding to 2% out of market hours. (something I learned from another book I read – Guy Spiers Education of a Value Investor I think but I can’t be sure. Place your orders in the cool of the night when you are less likely to be influenced noise and market gyrations.)

I then had to make a descison: exit the position or top up. Doing nothing was not an option I believe. See the book The Art of Execution for more on this. In the end I decide the market had over reacted and I placed a second order to take my holding up to 3.38% of portfolio ex cash or 2.93% of portfolio including cash.

Anyway I bought Crawshaw originally as a punt but also with the intention of sticking with it for the long term and I am sure that Noel Collett having been CEO for barely 18 months is not going to want to throw in the towel at this stage. I will be watching very carefully to see how things go. As an aside I am still holding around 12% in cash.

On the subject of cash I will cover that tomorrow if I have time.


One thought on “CRAW”

  1. Thanks for writing this up and summarising your thoughts and logic for top-up decisions. Having recently read “The Art of Execution”, I think some of the disciplines covered are important, helpful, but not easy.

    A recent positive experience of applying this discipline was the decision to add to my IRV holding at lower prices after the warning on losses relating to waste contracts. I decided the problems were specific and contained and therefore SP reaction overdone. The subsequent results announcements which confirmed no expansion of provisions lit a fuse under the share price and it recovered a great deal. If the next results from IRV confirm no further provisions, I think this could recover further. That said, not every decision is so easy. After hitting a stop loss on CMS, I reviewed the investment case and while the business seems to be out of favour with investors, the fundamentals looked to offer significant upside, so I added to the holding. Time will tell if this was the right decision.

    As John Rosier comment, it is important and balanced to share winners and losers alike, so we can learn from experiences. Thanks for doing just this with this stock.


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