Rolfes: Sell on Rumour, Buy on Fact

Following my recently published top ten investment cases (see here) and my previous articles talking about Rolfes (see latest here), the recent trading update and accounting restatements require commentary.

I sent out a short note on Rolfes to my investors in the AlphaWealth Prime Small & Mid Cap Fund. You can download the note in full here.

I hope you follow my reasoning in the note, but the conclusion is relatively simple: do nothing. Even after restatements, Rolfes is still too cheap to sell. Don’t forget, the restatements are accounting details, not operational ones. Operationally, Rolfes still appears fine. But, without specific details on the restatements and errors and impairments, I am not going to buy more at these levels.

I will wait for the results next Friday. Specifically, I am waiting for the details therein regarding what the restatements and errors and impairments are and how they happened.

With these facts, I will then decide what to do.

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