I Changed my Mind

The title here is a bit misleading. I didn't so much as change my mind about Fonterra, as recognize that its share price has moved beyond the point where I would be comfortable adding to my current holding. Sure, its share price may come back a bit, in which case I can probably still buy more. All I have done today, is enter $1,000 into the current IkeGPS share placement. This is a low-risk way of adding to my holding in IkeGPS at a 12% discount to the current price.

The reason I am not putting more this share placement, is that IkeGPS only has a market cap of $178m and is still establishing its software platform in the American communications industry. This is the second share placement I have taken part in with IkeGPS, so I am essentially dollar-cost-averaging. It is a company which is projecting to go EBITDA break-even in FY25. With other holdings, I have seen the capital gains from the companies moving into profitability. Ike is also growing its subscription revenue at a 48% rate. This is repeatable revenue and will be beneficial to the bottom-line for years to come.

With the remainder of my investment capital, I may still put it into Fonterra. But I have taken off the buy order I had. I will watch the FSF share price and see what happens. Another alternative is to buy more index ETFs. The USF, TWF, and USG (along with my KiwiSaver) form the backbone of my portfolio. And this backbone has been doing really well, with the likes of Nvidia and Microsoft being large positions in these ETFs. Considering that these holdings have been working well for me, it would make sense to add to them. It would also be an easy way to avoid paying brokerage commissions.