This is an email exchange with a reader on Marco Polo Marine:
From Y:
AK,
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
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