Marco Polo Marine: A price I would not sell at.

This is an email exchange with a reader on Marco Polo Marine:

From Y:

AK, 

marco polo drop to 33 cent, you think good value to average down somemore?

actually i have quite a lot, 65 lot already. paper losses 13%. :(

My reply:

Hi Y,

I first got into Marco Polo Marine at 31.5c and 32c. I kept buying even at 42c as I believed that the stock was undervalued even at that price.

Later on, I blogged about how I reduced my long position given the developments in the company. I lost some money in the process. However, it was the right thing to do.

At 33c a share now, it is not a price that I would sell at. It is a price I would think of getting some at. This is simply because it is at such a huge discount to NAV.

However, given the weakness of its tugs and barges business and also the lack of certainty with regards to its pending rig business, I want to make sure that my exposure to its stock is at a level that will not cause me to lose sleep.

Best wishes,
AK

Related posts:
1. Managing exposure in AK's investment portfolio.
2. Portfolio review: Unexpectedly eventful.
3. Reason for price weakness.

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