Bargain hunting?

[mime]

Does anyone think the that market has been over sold? I feel that this kind of drop over the credit squeeze in the US is over the top. The bottom line is that Aus companies are still making major profits the squeeze can't affect the profits that badly. So bounce back?

Lets think about it.

 

[the barry]

Re: Bargin hunting?

Does anyone think the that market has been over sold? I feel that this kind of drop over the credit squeeze in the US is over the top. The bottom line is that Aus companies are still making major profits the squeeze can't affect the profits that badly. So bounce back?

Lets think about it.

Have to agree, the question is when to pull the trigger to do so? Whilst potentially oversold at the moment, nothing to say it won't end up more oversold.

 

[Uncle Festivus]

Re: Bargin hunting?

Gold companies oversold, Aus gold price up. Bargains yet?

 

[dj_420]

Re: Bargin hunting?

take a look at GBG for a bargain! almost 30% drop in one day WTF????

 

[Ken]

Re: Bargin hunting?

Why not wait for a trend to develop? At the moment the trend is down.

We as individual investors cant influence the trend.

Depends on your strategy I guess.

If you are a long term investor I dont think buying when the market is in free fall is the smartest thing to do.

A lot of investors are spooked.

Protect your capital untill the dust settles.

 

[Wysiwyg]

Re: Bargin hunting?

Does anyone think the that market has been over sold? I feel that this kind of drop over the credit squeeze in the US is over the top. The bottom line is that Aus companies are still making major profits the squeeze can't affect the profits that badly. So bounce back?

Lets think about it.

I almost started a thread then on swan dives but this one will do.Can be lucrative catching these type.Here is a good swan dive mime.GOP.

Anyone have other examples recently?

 

[mime]

Re: Bargin hunting?

Why not wait for a trend to develop? At the moment the trend is down.

We as individual investors cant influence the trend.

Depends on your strategy I guess.

If you are a long term investor I dont think buying when the market is in free fall is the smartest thing to do.

A lot of investors are spooked.

Protect your capital untill the dust settles.

What the trend been in the last 6 months?

 

[Ken]

Re: Bargin hunting?

Well the trend is obviously south at the moment. We had hit all time highs for an extended period.

You'd prefer to be watching than holding at the moment wouldnt you?

 

[Nick Radge]

Re: Bargin hunting?

Those that pick bottoms get dirty fingers.

Chinese proverb

 

[mime]

Re: Bargin hunting?

Well the trend is obviously south at the moment. We had hit all time highs for an extended period.

You'd prefer to be watching than holding at the moment wouldnt you?

You will probably find that the all ords was it similar levels to what is was in Jan if not a little higher.

 

[-merry]

Re: Bargin hunting?

Can anyone see how the sub prime mortgage problem in the US is affecting the resource sector in Australia? I cannot see a link between the two. Especially with the smaller companies that are still in the exploration phase, they are generally free from leverage. I dont see how the fundamentals of the stocks have changed. Weren't these shares valued on the basis of what they ahve got in the ground and where they were going to go? (i.e. China mainly) Is the selling of resource stocks a result of panic in the market or investors selling off stocks because they took up loans to invest in shares and can no longer afford to repay the interest?

 

[Ken]

Re: Bargin hunting?

The market is constantly moving, at the moment its moving south.

Who are we to disregard that?

Last week MBL was a bargain at $77 now its $66.

There is buying stocks at value, and there is throwing money away.

MBL could be $58 next week. Who knows?

You would rather buy MBL at $66 going up than MBL at $66 going down in my opinion.

 

[INORE]

Re: Bargin hunting?

I beleive that once we are out of this freefall which could be some time yet, there's method of picking the most likely to bounce back 'bargains'. It would have to take into account any company activities that could have also effected the SP.

I have some stocks on my lists which are producers that have fallen 30% and some that have fallen 60%....Would it make sense that taking into account all the economic factors etc. to pik the stock which has dropped the most??? I hope so because that's what i plan on doing....the next and most critical would be to obviously time it all.....some reports are now touting XAO to next support of 5400...

1226 [Dow Jones] TECHNICAL ANALYSIS: S&P/ASX 200 looks headed to 5600 while it remains below 6165 in the next few months, says Dow Jones technical analyst Dave Rogers. Last month, index broke steep weekly uptrend line from September 2006 and triggered broadening top pattern, amid deepening concern over subprime lending crisis. Subsequent bearish key reversal pattern on monthly charts and likely sustained break of 200-day moving average near 5967 calls for a few months of weakness. There is some Fibonacci support at 5800, but index probably needs to test major support levels. Bear flag pattern targets 5600. There's also major support near 5640 from February 2007 peak and monthly uptrend line from May 2005. Given that index fell 16% in the LTCM crisis, a fall to the next major support level at 5400 can't be ruled out. Index last 5858.8. (DWR)

hmmmm no bargains around for a while me thinks....but has anyone got any more thoughts on how to get the best bargains when the time comes?

 

[chops_a_must]

Re: Bargin hunting?

I beleive that once we are out of this freefall which could be some time yet, there's method of picking the most likely to bounce back 'bargains'. It would have to take into account any company activities that could have also effected the SP.

I have some stocks on my lists which are producers that have fallen 30% and some that have fallen 60%....Would it make sense that taking into account all the economic factors etc. to pik the stock which has dropped the most??? I hope so because that's what i plan on doing....the next and most critical would be to obviously time it all.....some reports are now touting XAO to next support of 5400...

No. You want to get into the shares that fall the least. That shows the underlying strength.

 

[INORE]

Re: Bargin hunting?

Can anyone see how the sub prime mortgage problem in the US is affecting the resource sector in Australia? I cannot see a link between the two. Especially with the smaller companies that are still in the exploration phase, they are generally free from leverage. I dont see how the fundamentals of the stocks have changed. Weren't these shares valued on the basis of what they ahve got in the ground and where they were going to go? (i.e. China mainly) Is the selling of resource stocks a result of panic in the market or investors selling off stocks because they took up loans to invest in shares and can no longer afford to repay the interest?

china needs our goods/materials to make their goods which in turn they sell to the US (if the US can afford it cos they're now homeless)

 

[Ken]

Re: Bargin hunting?

I reckon look for stocks that are going to be in managed funds.

BHP
WOW
CBA
WBC
ANZ
RIO
MBL
QBE

Anything top 20...

Thats what moves the index. So if the index hits all time highs again it will be these stocks that are doing well.

Why not look at a managed fund itself?

 

[Nick Radge]

Re: Bargin hunting?

china needs our goods/materials to make their goods...

Too true. But what is wrong with this statement?

 

[chops_a_must]

Re: Bargin hunting?

Too true. But what is wrong with this statement?

We need them to make our goods for us.

They aren't "their" goods.

 

[billhill]

Re: Bargin hunting?

We need them to make our goods for us.

They aren't "their" goods.

agree. China still does not have a significant consumer ecconomy. Until then we all rely on the US to consume good. US consumption is still the world ecconomic engine.

 

[-merry]

Re: Bargin hunting?

china needs our goods/materials to make their goods which in turn they sell to the US (if the US can afford it cos they're now homeless)

Although the US plays a big role in China's export industry, it's not the only country that imports goods from China and not all materials going into China is used to make products. What about the infrastructure and development? Also, a lot of the materials exported to China are used to produce commodities and staple goods. And then what about gas and oil stocks? How will the demand for oil and gas decrease so much as to see the kind of movements in share prices that we're seeing? Is everyone starting to think that the US is heading to a recession?