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Bottom Drawer stocks

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RichKid

RichKid

PlanYourTrade > TradeYourPlan
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This thread is inspired by WayneL's bottom drawers! Wayne mentioned PHY as a bottom drawer stock.

Made me think of other 'safe' or defensive (in my view) stocks that are trending steadily but surely- and some with dividends too.

Here are the one I like: DCA Group, Pacific Hydro (once it rejoins the trend from current highs), ABC Learning (again maybe a moderate fall to be more comfortable), GRD, Hardman Resources, Cellnet Group, Broadcast Services Australia. Only problem is it's easy to find uptrending stocks in a bull market so I'll have to be careful about which ones to go with in the LOOONG term.

Might do some charts of em later. It's a shame I'm too greedy to actually put money on em, I thought I could make zillions more on junior resources stocks but have been unsuccessful. Might have to start a long term defensive portfolio of a few stocks to reduce risk.
 
I would say Bluescope (BSL) would also most definately fit into the criterea. However, it has suffered a slight fall recently. I reckon it will pull up soon though
 
By my chart, I would say BSL is currently dropping from its recent short-term trend back towards a longer-term shallower trend line.

Unless it starts into a new major down-trend, I don't think it will go much lower than it is now.

Of course this is only my opinion and should not be regarded as any sort of advice.

Cheers,
GP
 
Wesfarmers (WES) is one I've been stashing away over a few years too.

A friend of my outlaws inherited 11million dollars worth from there next door neighbor last year..(was reported in the newspapers here) when about $28...lets hope they didn't cash them in cause they'd be up extra 2 odd million now.

Say...! Did I tell you all about my new best friends.....:)

I have a few others taht are looking a bit exy now, but will mention if they ever look like being at reasonable value.
 
wayneL said:
Wesfarmers (WES) is one I've been stashing away over a few years too.

A friend of my outlaws inherited 11million dollars worth from there next door neighbor last year..(was reported in the newspapers here) when about $28...lets hope they didn't cash them in cause they'd be up extra 2 odd million now.

Say...! Did I tell you all about my new best friends.....:)

I have a few others taht are looking a bit exy now, but will mention if they ever look like being at reasonable value.
Click to expand...
Can we be your new new best friends ;)

"exy" = expensive??
 
Ghotib, maybe it's the 's' that was missing- if you're like Wayne and you spend lots of hours looking at stocks then they do start to look attractive in certain ways- especially if they have lovely colours like Wayne's charts.....he he he he (or maybe after he's had a beer)

(sorry couldn't help that bit of immatureness- it was Wayne's 'outlaws' jibe that got my funnybones tickling)
 
the other bottom draw stock is when you know you should have sold but watch it sink on down then choose to ignore it to save yourself from the emotional pain of the bad trade untill you can one day at least get your money back. Thats what my bottom drawer stocks look like......

BQT is a curent such stock for me but things should be different by the end of the week
 
I would've have said that a bottam drawer stock is one trading on low PEs because it is out of favour with the market. I'm holding MGX as a "bottom drawer" stock because it is trading on low forward PEs, has fair upside on its profit forecast of 5cps (I believe it will fall a little short of this figure) and its iron ore management fees earned will be indexed to any rise in the iron ore price. There are also two iron ore mines that are not opeating that may be producing within two years. I'd put this stock firmly in the speccie pile so its certainly not for everybody.

Holding BSL LT, not concerned about recent softness as fundamentals still appear strong to me
 
I am slowly building up my holding in ARROW PHARMACEUTICALS AWP.
A great management team and trading in a field, generic medicines, that can only grow.
Currently number two in its market, the number one company, Alphapharm, was started by the same management team and sold off to a German company and has slowly been losing market share.
Check out the graph for yourself.

Good trading,
DRUGGIST
 
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