Buy when there's blood in the streets

[wbooo]

Has everyone lost their senses, this is undoubtedly one of the best times to buy, in the last month several companies have reported excellent results with more excellent results expected for next year, if you don't buy these stocks now when will you buy them?, Oh yes silly me , thats right when the price has risen to an all time high and your paying atleast 20% above fair value.

Great companies have been down valued by upto 20% since the djia started its decline, most of these companies have niothing to do with the housing market, have very conservative debt levels and excellent cashflow, so who cares about the subprime mortgages, or the credit bubble, these companies have survived atleast one recession in their lifetimes and lived to tell the tale.

People 'DONT PANICK' as long as your holdings are in solid companies you'll be o.k, just by value not hype.

 

[prawn_86]

Re: Buy when theres blood on the streets

I agree.

And the question has to be asked:

'who is buying at these levels?'

If ordinary 'normal' investors are getting panicked and selling, someone is happily snapping them up. My suggestion would be funds and top20 holders of the co's. I think we may see a lot of substantial holding changes statements over the next couple months

 

[DionM]

Well I've been topping up and buying new shares. Though that's backfired - everything I bought yesterday and the day before has fallen more ... I thought we were nearing the bottom and support lines on some of those stocks ... obviously not!

 

[wbooo]

Forget support lines Dion,

What you need to do, is look back over the year at other general market drop times where your stocks were effected, ie news about china running our of steam or raising rates and see how much your stocks dropped at that time, look at the maximum drop, eg, cochlear falls by appx 10% to 15% at worse.

Once you have figured out your worse case scenario price, that should be your buying price, eg your stock is currently 5.50, in March it fell from 4.50 to 4, so now expect it to fall to 5, and buy at or below 5, if you are feeling more pessimistic.

 

[dubiousinfo]

Has everyone lost their senses, this is undoubtedly one of the best times to buy, in the last month several companies have reported excellent results with more excellent results expected for next year, if you don't buy these stocks now when will you buy them?, Oh yes silly me , thats right when the price has risen to an all time high and your paying atleast 20% above fair value.

Great companies have been down valued by upto 20% since the djia started its decline, most of these companies have niothing to do with the housing market, have very conservative debt levels and excellent cashflow, so who cares about the subprime mortgages, or the credit bubble, these companies have survived atleast one recession in their lifetimes and lived to tell the tale.

People 'DONT PANICK' as long as your holdings are in solid companies you'll be o.k, just by value not hype.

Thats what I did in 87. I was sitting on losses but convinced the market would go back up so decided to buy more. Picked up some great bargains, blue chips were so cheap and the spec stuff, had never seen it so cheap.
The only problem was that they were even cheaper a week later, then cheaper still 2 weeks later.

I will be looking to go back into a number of companies. But not yet. Happy to be holding some shorts for the moment.

 

[zt3000]

Has everyone lost their senses ......

People 'DONT PANICK' as long as your holdings are in solid companies you'll be o.k, just by value not hype.

Dude its human nature ... the problem is hedge funds are being forced to sell even if they holding good stock. Which as you can see triggers everyone elses selling button.

The thing is you might think its stupid to sell, the company is now undervalued ... but when market sentiment is working against you, you may as well pack your bags and become a sheep too ...

at the end of the day we all trade differently as have different levels of risk aversion .. good luck either way to all! we need it

 

[Flying Fish]

Crazy buying now. More big falls to come I reckon.

 

[doctorj]

As a small, sad aside, I'm surprised we've not yet any stories about actual blood on the streets.

 

[lusk]

Has everyone lost their senses, this is undoubtedly one of the best times to buy, in the last month several companies have reported excellent results with more excellent results expected for next year, if you don't buy these stocks now when will you buy them?, Oh yes silly me , thats right when the price has risen to an all time high and your paying atleast 20% above fair value.

Great companies have been down valued by upto 20% since the djia started its decline, most of these companies have niothing to do with the housing market, have very conservative debt levels and excellent cashflow, so who cares about the subprime mortgages, or the credit bubble, these companies have survived atleast one recession in their lifetimes and lived to tell the tale.

People 'DONT PANICK' as long as your holdings are in solid companies you'll be o.k, just by value not hype.

Sorry but no thanks, would you get on a train thats going the wrong way? You can still make money however in this downtrend instead of buying the underlying share.

 

[wbooo]

The ASX has now officially fallen by a greater percentage then the djia.

Even if there are more falls to come, and I too beleive there are, since no one likes to hold stocks in a falling market going into a weekend, the selling is still overdone, when I say buy when theres blood on the street I am not advocating that anyone buts right now, I am just saying that a lot of great stocks have fallen below fair value and if you have the stomach for it you can make good profits over the next few weeks/months.

I consider myself to be an investor not a trader, and I consider myself to be risk averse, even though what I am saying may sound risky, it is only risky if you are looking for quick profits and have a lot of gearing.

 

[DionM]

Personally ... I hate the fall in SP more for the fact that I missed an even better price to buy in at, rather than because the fall in SP has reduced the value of my holdings ... does that make sense?

 

[Morgan]

What really rubs salt into the would is knowing that we will only know in hindsight at some time in the future, what stocks are currently presenting the buying opportunities of a lifetime......

 

[Gundini]

There is plenty of blood on the streets and it will be for all to see in the coming days...

As a poster mentioned in another thread yesterday, if you are happy to buy MBL @ $66, why would you buy it on the way down?

Buy it for $66 on the way up!

This is very good advice...

MBL by the way currently $61.97.

 

[sleeper88]

the super funds aren't fairing much better..and for all those people who topped up their supers before june 30th would also be feeling the pain

 

[nioka]

Once you have figured out your worse case scenario price, that should be your buying price, eg your stock is currently 5.50, in March it fell from 4.50 to 4, so now expect it to fall to 5, and buy at or below 5, if you are feeling more pessimistic.

AGM and AOE fell below my worst case senario and I bought. Their worst case has now become obselete and a new one has emerged. I refuse to join the lemmings so I think I will have to go fishing or do the garden. A bad days fishing would be better than this and when the world wearies and life doesn't satisfy there is always the garden.

 

[DionM]

I wonder how those on margin lending are faring Surely there would have been a few calls recently ...

 

[Julia]

A bad days fishing would be better than this and when the world wearies and life doesn't satisfy there is always the garden.

Or a walk on the beach with the dog, or being with friends who know nothing about the stock market.

 

[Magdoran]

As a small, sad aside, I'm surprised we've not yet any stories about actual blood on the streets.

Yes, good point doctorj,


Let’s hope this isn’t like 1987.

You can always recover, remember that no matter how bad it seems. There are survivors from 1987’s losses that recovered, and are living good lives – there is always a way…


Mag

 

[krisbarry]

As a small, sad aside, I'm surprised we've not yet any stories about actual blood on the streets.

Those stories will be on their way...just imagine all those people who borrowed $1 million to pump into super, now its worth about $870,000k, not to mention higher interest rates and a housing crisis...ouch!

 

[Junior]

There is plenty of blood on the streets and it will be for all to see in the coming days...

As a poster mentioned in another thread yesterday, if you are happy to buy MBL @ $66, why would you buy it on the way down?

Buy it for $66 on the way up!

This is very good advice...

MBL by the way currently $61.97.

That is, if you can know when it is on it's way back up.