MHM Purchase & Going Camping

Sorry I have not updated my blog much this week, but I am going camping this weekend and have been rushing to finish all my work in time. As a result the weekly report (week ending 2 dec) and monthly report (for November) may have to wait until next week.

Anyway, I posted on twitter yesterday that I bought some more MHM shares and wanted to write an article about it as well. I know that I have missed a lot of the run up (from the mid 50's) but it was always my intention to buy more and I decided to bite the bullet yesterday. I ended up doubling my holding in the company at an average price of $1.01, which was pretty close to the low for the day.

We have less than eight trading days to go until we get to hear about their US expansion via the press conference and I feel it is better to be on the train (and pay a little more) than miss it altogether. I also wanted to comment on the reasons why I missed such a large part of the run up. What happened was I became "fearful" which I know is a really stupid reason, especially considering the amount of research I put into my stocks, but when the share price is getting hammered it is really hard not to question if you have made the right decision. As a result I decided to wait until the first plant was confirmed and information received on how it was financed. I anticipated that if this announcement came in the low 60's or 70's I would still be able to jump on at around 80-90 cents and average down my buy price to approximately $1.

Unfortunately nothing is ever that straight forward and we only received details of individual contracts. I probably should have used this as a queue to jump in, but I hesitated. I will strike this down as a lesson learnt on my long term investment journey and try to be better prepared for these situations in the future. We could well see some weakness in the share price over the next weeks/months, but I remain positive on the company's long term potential and do believe that the announcement next week will be positive from a fundamental point of view. Hopefully it is strong enough to push the share price higher and into profit on this position.

Time to get back to work, camping awaits me tomorrow afternoon. I am not looking forward to being cut off from my computer and hope there is reception so I can at least use my iphone.