Bargain hunting?

[pennystock]

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.

Good advice Ken...
MBL was $65 on October 2006 and was riding an uptrend quiet clearly. Now it is around $65 on a sliding southern chart, wait for the dust to settle, ok so we miss a few dollars hear and there not finding the bottom but hey charts almost never lie.

 

[Ken]

The market is expected to rise on monday by 200 points.

Dont be fooled straight into think MBL will be straight back to $97.


It will take time to gain that sort of ground. Trading wise $70 on the way up is better than on the way down....

So good luck.

 

[wintermute]

Well there are two ways to look at it IMO. If you are certain about the current value of a stock (not easy) and are sure it is undervalued, then who cares if it goes a bit lower, if you would be happy to buy at the current level, provided of course it goes back up (which if your analysis was correct it should).

so say stock X is in your oppinion worth $10.00 and it drops to $7.00 the chart shows it is heading south big time (mainly because the market has gone into conniptions).. you see it drop to $6.50 but the chart is still horrible, but then it starts going up again. Do you buy at $7.00 which you would have before... maybe it is a dead cat bounce?? better hold off, hmmm it has hit $7.50, maybe it will pullback again. $8.00 hmmm probably a sign it is back on track, better buy now....

Now what was a more sensible choice, buy at $7.00 initially because you KNOW the stock well, or rely on a chart that has been completely obliterated by blind panic?

No one can ever know exactly what is going to happen next, I use charts for setting buy or sell targets, but IMO in this environment you are better off using a weekly or monthly chart to try and work out where long term support is and pitch your bid there (rather than looking for signs of a turnaround), and wait for the panic to allow your bids to be filled

That's my contrarian approach

The bottom line is, that whilst stocks will get sold down during a panic, those that are fairly valued before the sell down, with strong fundamentals, should rise back to the top. looking at just the index gives a false impression, not all stocks are affected equally during and after a correction

Tony.

 

[insider]

I can't find real bargains... To me it looks like people are anticipating a sell off at the end of the day

 

[nioka]

I believe I have bought some bargains in the last two days. AGM @ 50c, TAS @ 15c and ADI @ 52c. They may slip a little, it is hard and risky to get the very bottom but at these prices I believe I have value. This correction will certainly shake out a lot of uranium, nickel and iron ore hopefulls but the companies with a future will rebound quickly. That is my opinion anyway.

ADI up13% AGM up12% and best of all TAS up 40%. Buy Fridays sell Mondays or Tuesdays turns out good once again.

 

[moXJO]

Well I’m out for a tidy profit from the shares I bought on the lows last week and am now roughly 95% cash. Between that ,some written options ,and some well placed aud/usd shorts that I closed out and cashed in. I think I might go on holiday until this mess sorts itself out and a clearer picture emerges of just how bad it is.

I would have liked to buy and hold but don’t want to get caught in a market that will slowly drift down lower. A bit hard to tell what’s going to happen with all this volatility so bugger if I want to trade it atm.

 

[nioka]

I can't find real bargains... To me it looks like people are anticipating a sell off at the end of the day

The bargains were on Friday. but there are probably bargains today. The market hasn't risen all that much.