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Speccies in current environment

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AnDy62

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Howdy,
I'm fairly young and comparatively new to shares. Obviously, many specs have been spanked in the current environment, Ben Polkinghorne (Paterson) said 'If you are still holding any speculative stocks, cut your losses and move the money into better quality stocks with greater earnings capacity.'

Do people agree with this? Some of my specs, I like fundamentally, but they are just heading further and further south, is it worth cutting my losses or holding on, whilst they whistle down...?

Any thoughts, apart from stop-loss comments, appreciated...
 
Have killed off 2 specs mostly because there's no way the market is going to drive them up with current sentiment. Am keeping other mining specs with near term production and/or large resources because they could go cash positive soon or be gobbled up due to low market cap. Anhow I'd say look at the small producers, one I'm sitting on is Consolidated Rutile, their earnings outlook was only moderate but it is relatively assured which = safety. So i'd say that in the short term until metal trends change then the Pattersons outlook is right for mining specs.
 
AnDy62 said:
Howdy,
I'm fairly young and comparatively new to shares. Obviously, many specs have been spanked in the current environment, Ben Polkinghorne (Paterson) said 'If you are still holding any speculative stocks, cut your losses and move the money into better quality stocks with greater earnings capacity.'

Do people agree with this? Some of my specs, I like fundamentally, but they are just heading further and further south, is it worth cutting my losses or holding on, whilst they whistle down...?

Any thoughts, apart from stop-loss comments, appreciated...
Click to expand...

No question it will be much much tougher for most specs...a rising tide lifts all boats and vice versa. There will always be quality stocks that defy the markets and that applies for specs, but make sure you know your specs well and aren't blindsided, market will slaughter bad news. 80% of my pf is specs and they're travelling reasonably all things considered, but it's pretty tricky.
 
I think when you're just starting out specs are alluring because of the low cost of entry and %promised% return

Specs appeal... Say that fast 5 times!

Check out:
http://www.investopedia.com/articles/03/050803.asp

Note the bit on the liquidity issues and the ramping issues.

I think liquidity is the key - why not paper trade until you get enough capital and use the time to refine your a strategy and learn about hedging, TA, FA etc
 

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