Another good post at 13:22 mate. Clued up. This time last year I looked at the market and loaded up willingly and with a confident smile. Right now there is a much more cautious view, but mainly pointed towards small caps and AIM, because institutions and bigger players have derisked from the riskier, small MC growth stocks the large caps / blue chips, particularly dividend paying ones. That is why the FTSE is still rising, while AIM suffers. The miners have taken the brunt of the pain and the AIM market is currently loaded with DISILUSIONED investors, surrounded by gamblers / traders hoping to get a quick fix. The morale I suppose is...why didn't we follow the trend? Well we are in this environment because the risk / reward far outweighs returns from the blue chips. Like the scorpion that stings it's victim, we do it because we can't help ourselves. It's what we do.. We are looking for life changing opportunities and new, exciting plays/ stories that can multi bag over time, very quickly in many cases, if the sentiment is there and the right players get involved. Generally a get rich quick stock will have rampers on board, which means that when the train is accelerating towards its final station, there is a train wreck waiting ahead. AIM is littered with those stories and you have to navigate very carefully, with a knowledge that goes beyond fundamentals and stock picking, if you are to succeed. If you DYOR and pick the stocks with good fundamentals and get in at an early / low entry, you can make a very good return on your investment, and yes, life changing. You look at many of the endangered species, like SER, to name just one ( don't want to upset investors in the long list of other failures) and you will see that at intervals on the chart, they have made investors considerable returns, but now they have fallen by the way side, sentiment has turned against them and they have only a very small chance of survival. Blame the bod for lousy accounting and endless delays on their promises, blame the countless fund raising that destroyed share holder value, blame shorters and market manipulation, blame disillusioned investors, but these are the hairpin triggered mines that litter the AIM market and it is up you to find the ones that are better equipped to withstand even more pain when the market pull back arrives. This is why I am invested in MAGP. Fundamentals, management, very low risk, proven playground, enormous growth potential, funded, very early stage opportunity, you name it, magnolia petroleum seem to have the boxes ticked and the equipment to survive even the worst case scenario. With MAGP, there is room for traders and investors alike, the growth story and development will continue.
When AIM has been manipulated down to the floor, watch the bigger players , the market movers, the big fish that still pump the FTSE 100......reclaim their positions.
Completely agree with the makret pullback stuff and in my opinion the "pullback" could actually be a mage fall! the annoying part is AIM sentiment is trashy and will get completely trashed if and when the main market loses its bling. For now i remain rather bullsih about FTSE(not because i think we are doing well as an economy) but purely because the markets have that "UP UP UP" attitude at the minute and 7000 is ready to be breached soon imo, I'm also going to be moving a lot more money into cash as time moves on. I would be a lot more comfortable if FTSE 100 was still sub 6000 because we don't have much reason to be higher than that other than QE bubbling it with trader sentiment that equity markets are the place to be which they are trying to push into investors further by hurting the gold market with their paper trading! problem is that all will be revealed eventually and then hello FTSE 100 at 4XXX and god knows where AIM will be!
Only spanner in the works and always at the back of my mind when buying ( limited to small positions ATM) is if we see a stock market pull back. Nobody knows WHEN it will happen, but we know it WILL happen. With that in mind, cash is still king. I'm keeping plenty of powder dry and only drip feeding money into the market ATM.
Hey mate, I have been know to ramp a couple of shares in my time. The rule of thumb though is to make sure the fundamentals are in place, because otherwise you are doing it in a malicious way. DYOR and give that stock as much PR as you can if you believe in the potential. It is your investment and it pays to keep watering the bb to help it grow. What you say about active management, unfortunately these days, is the key to profits. A good post mate.
GOLD....I agree about caution and maybe there is a little bit more downside to come, but the cyclical downturn is about to end in my opinion and many of the gold stocks have been beaten up that badly, that I don't think they can be resuscitated. There are some real dogs out there, with billions of shares in In issue that have suffered the most. God help any of them if they still require capital through fund raising. The high quality plays on the other hand ( MML ) look amazingly cheap now and their chart suggests that the pain is about to end.
If you want to diversify though, you should really take a very close look at PRS and crunch the numbers. Look at their portfolio. With a market cap @ 2M, they are too cheap and if you look at the approaching news you will see that it will significantly increase their value. DYOR.
yep in the bio sector personally the 2 big winners are SCLP and IMM, both present relatively low risk opps and aslong as you do your research and feel comfortable with your position and also have a strong investment strategy i.e selling/topslicing on spikes and top up on weakness you won't have any complaints. The best way too research any company in my experience is to go through the balance sheet first regardless of which sector it is and make sure everything is sound then use google to your full ability and only then read the BB's for info as sometimes even the best posters while holding a share can unknowingly have thier rose tinted glasses on. BTW was i one of the "odd" rampers you were referring to! its OK i grew up getting bullied. they used to call me the three legged monster at school.
AS Pharmaceuticals go, IMM are top of my list in terms of upside potential. Like you say, there are a few knowledgable people over on the bb that will say the same, plus the odd ramper, but at 36p, they are very attractive and have great potential waiting to be unlocked. Lupus could be the prescription to deliver a blockbuster shareprice.
Datafeed and UK data supplied by NETbuilder and Interactive Data.
While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk!
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.