Primarily Invests in UK small/midcaps. Life long learning.Investing for 16+ years, Mistakes teach you more than successes, have fun along the way and respect .
Advert:
Looking for someone to join the spaces to discuss stocks in a morning. Due to its overall popularity time to grow.
Applicant to be fairly unhinged, to be socially awkward, moody at times, a challenge to mange
Please send DM to apply and see where it can go
Thanks
@MrShitbagger Suffering from same phobia brah ! Building Free Runners and not touching them as you mentioned is a good idea that Iโm going to try. Cheers brah.
Why stock options trading is brain dead ๐
Options trading is brain dead because it pulls you away from the only thing that actually creates real wealth which is owning great businesses and letting compounding do the heavy lifting. Once you switch into options you stop thinking like an owner and start thinking like a gambler who is trying to guess where a stock will land on a specific day, and there is no faster way to sabotage long term results than to believe your edge comes from timing.
Options force your attention onto movement because they train you to care about volatility instead of value. They make you feel smart in the moment while teaching you nothing useful about the business. You end up reacting to noise that has no connection to the long term reality you claim to care about.
The real damage is psychological. Options collapse your time horizon. They make every tick feel important. They create urgency where none exists. They turn normal fluctuations into emotional events. The more you stare at the short term the more you lose the ability to hold through it, and the moment you cannot hold you remove the single most important ingredient in investing which is time.
And then there is the part almost nobody understands until it is too late. Nearly all option gains are taxed as ordinary income which means the number you see on the screen is not the number you keep. You pay far more in taxes than you expect. When you finally add up the after tax return it is usually a fraction of the story you convinced yourself was true.
Options give you adrenaline instead of clarity because they reward speed instead of patience. They create the illusion of control while pushing you away from everything that actually produces wealth. It feels like a shortcut but it quietly takes you further from the destination.
The investor who wants real results spends less time predicting prices and more time owning great companies long enough for compounding to work. Everything else is noise pretending to be strategy.
๐น
Opened a large position in #CTA CT Automotive @33.4
1) Has good order book for FY25
2) Margin improvement in right track
3) Further cost savings to start in HY24
4) Tooling unit which has 30% PBT margin has doubled.
Negatives :
1) Trump Tariffs
2) Automotive industry slow down
New position #LDG.L (Entry 13.4p). Ex-holding. APH doing well and a tender offer at 19p with return of ยฃ21 million. Sold previously on the rise due to tip from ST. Huge discount to NAV but Dbay investors are the driving force.Still looks a good buy. Will exit around 18p.
#NCC.L
SOTP valuation interesting here. Kelso holdings were pushing for the split of the Escode business. With 20% drop today, this is in a great spot for a potential take over.
I hold.
3/3
#NCC.L Harsh reaction. Communication couldโve been better.
1) FoxCrypto sale ยฃ66m. Should wipe out the debt and the finance expense. Contributed ยฃ4M EBITDA. 16.5x
2) Escode did ยฃ30.8M EBIT last year. Majority recurring revenue. Applying the same 16.5x rating gives ยฃ508M
1/3
#NCC.L Escode deserves a better rating than 16.5x because they are market leader and has 57% of Fortune 500 companies, 40% of Fortune 2000 companies as clients.
3) If Cyber division can get back to 13-15 EBITDA then it is probably with ยฃ500M+ on its own.
2/3