I have given up on SBSW and capitulated at 3.13 a share, for a 31% loss. Sibanye will release its quarterly earnings on Sept 12th (Thursday), which it has already announced will be poor (NR).
Reasons to sell:
- Stock is trending lower day by day with no support. Today it was down 7%
- Poor financial performance
- Negative sentiment abounds on X
- My purchasing decision was influenced by Calvin Froedge’s bullish interview on Brandon Beylo’s ValueHive about the stock. Brandon has since sold since the stock broke below technical support. My opinion of Calvin has also dropped recently as he’s had some significant losses (Braskem, Vertex Energy, SBSW) and also a bit of a mental breakdown earlier in the year. Ultimately, I can’t blame him for this pick though. I need to buy the stock for my own reasons.
Reasons to hold:
- Original (weak) thesis
- Cyclical nature of the industry means that SBSW will trade higher at some point (if the company survives).
- Ex-dividend date is Sept 21, but dividend I think is cut
Ultimately, this is a bit of a ‘catch a falling knife’ story that I didn’t execute well on. I’m selling to preserve capital, and admittedly, am affected by the negative sentiment. I will monitor the stock and pay more attention to technical support levels in the future.
MB
Disclaimer: This content is for informational purposes only and should not be construed as financial advice. The views expressed are those of the author, who is not liable for any losses or damages arising from any actions taken based on the information provided in this blog. Investing and trading involve risk; you are solely responsible for your decisions.