Park Lawn Corporation (PLC.TO)

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Using book value, it’s about 5% of my portfolio. Now it’s about 3%. I believe the investment thesis is still solid. Is it good time to add more to get 5%, or even double down to reach 6%? Could you please provide your thoughts? Thank you!

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Asked on January 12, 2024 10:47 am
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Hi there. Ultimately we can't really tell people how to formulate their portfolios. So for that reason, I can't really give you any sort of guidance as to whether or not you should double your position. It all depends on your overall portfolio, risk tolerance, goals, etc.

What I will say is that when I buy a stock, I often assign a targeted allocation and stick to it. For example, I won't double down on a position and go from 3% to 6% just based on the fact it's down in price. I think in that instance you end up chasing gains.

In regards to Park Lawn, I have been adding aggressively over the last few months and will continue to add aggressively throughout 2024. I believe the stock is cheap, even during its recent surge from the $15 range to $19.

3% is my target allocation to Park Lawn. However, I never seem to get there so I do seem to be always adding to the company. I think long term shareholders will be rewarded adding at these levels.

As always, we have a ton of content on Park Lawn, including our Bull List report here:

https://www.stocktrades.ca/premiumfiles/Stocktrades-Premium-Park-Lawn-PLC.pdf

And even our analysis from a few months ago, which is still very relevant:

https://www.stocktrades.ca/analysis-of-park-lawn-corporation/

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Posted by Dan Kent
Answered on January 12, 2024 12:04 pm