Tom Scollon

If you bought Surfstitch in 2014 you might be feeling a little stitched up right now. 

This is not a pretty picture:

Click to Enlarge

I have seen it all before.  A good pitch up to listing.  Champagne corks popping on listing. And then ‘the life of Riley’.  Now words, words, words.

I don’t actually know much about SRF but to me it was on the nose a few months ago. Some writing was on the wall back in February – I touched on SRF in my article March 1:

Click to Enlarge

I rather sense early investors liked the story – Sun Sea and surf and cool people.  A potent mix of furry feelings.  It reminds me of the prefect summer at your favourite beach resort.  The family is having a perfect holiday and you buy the dream beach house.  Only to try to sell it when you are stuck for cash a few winters later.

So what do you do with SRF?  Don’t worry I’ve been there done that.  Many times.  And I always remind myself what doesn’t kill me makes me stronger.  My thinking is clear.  Unemotional.  Take a hit. 

The toughest bit about taking a hit is thinking about it before hand.  Agonizing.  Do yourself a favour.  Cut the agony and sell.  You will be amazed how even euphoric the post sell feeling will be.

As I say, I don’t know these guys.  But I do not trust whoever is involved.  They may be good guys.  But I only want to back winners.  They may double triple the buy in price eventually.  But I don’t want to hang about.

I first got involved with the sharemarket a long, long time ago.  I was a busy Managing Director buying and selling business. Turning them into gold.  I thought I could walk on water.  A rather toffy broker rang me one day on what was one of the first mobile bricks.  He had a deal for me.  It was a mining boom.  The penny dreadfuls he sold me turned to dust.  I vowed then I would find a better way.
I studied everything I could get my hands onto about technical analysis.  I lost more money.  All part of a steep learning curve.  I was not scared to give anything a try.  Eventually I had learnt much and thereafter stayed out of trouble.

The biggest lesson I learnt was: be quick to cut your losses.


Enjoy the ride

Tom Scollon