I don’t think it deserves a rise of 26%, after a brief look at the company, I think a PER of 60 is too high and EPS of .50c is far too low.
Just because it recorded record profits, I don’t think it means anything because the company tends to do low volume. So it just happened to make x number of sales that happened to be a record. What makes you think it will be repeated?
This defn. not the kind of stock I’d move into…
finance.google.com/finance?q=ASX%3ACHF
This is the company I bought recently. Its an LIC thats trading at its cash level in the bank, other investments aside, with no debt.
Why is it that no one pay any attention to value investing?
Major analysts that I’ve seen on TV that were interviewed at the end of '06 all tended to agree that '07 is the year of the growth stocks.
Steel is moving again, I’m a happy boy! 
Crazy resource speculators…
I read a book on Warren Buffet and his stocking buying style and I was intrigued. He basically just researches companies, waits and waits and waits for the perfect buying opportunity and buys big (or he did back before he had “too” much money.) Then he holds on to it forever.
It’s a simple way to do things, but I guess it’s pretty hard (the math, the research, the patience and all) and not for everyone.
From that book learned about a book called “Common Stocks & Uncommon Profits” and I’m reading it now. It’s some good shit. I also picked up “The Intelligent Investor” but I haven’t started that one yet (it’s written by Warren Buffet’s mentor.)
From what I’ve gather so far it’s very hard to beat the S&P500 “trading” stocks and you’ll probably lose a lot of sleep. With a lot of trading comes a lot of trading fees and taxes. I think I like the idea of buying and holding forever.
As long as the companies are good ones and pay a good dividend, why not?
I’d like to never sell my MO, but it’s getting tempting.
You should sell I guess, when you really need the money and when it makes better sense than borrowing from a bank.
Most mutual funds will underperform the S&P500 and this is true almost by definition due to the amount of money in mutual funds as well as they way they are setup. Thus, if you want something easy and to beat most mutual funds, just buy the index and be done with it.
That’s what I did until I figure out all this Warren Buffet shit (S&P500 index fund.)
Anyone know why a stock will sometimes bounce up and down all day, but then end up exactly – not in the general ballpark, but exactly to the penny – where it started? It’s not all that unusual. Here’s an example: yesterday’s performance by my best stock, NETC.
Anyone know why it would end up at exactly the same spot?
Someone has taken an interest in your little stock there MT. Got yourself a full time manipulator it seems.
My best performers on the ASX
Mcphersons 1.45 --> 3.4 (in only 1 year with ~7% dividend yield - not shown)
Multiplex 2.3 --> 5.1 (during 2.5 years with 7% dividend yield - not shown)
Harvey Norman 2.6 --> 4.75 (during ~2 years with ~4% dividend yield - not shown)
Hey!!! How about Liz Claiborne?
I used to have a very fashionable girlfriend who loved their clothes, but the company has also been attractive to investors for the past decade. Until 2 days ago that is. In the past 2 days it has dropped 21.5%, from 44.77 to 35.14.
Of course there’s a reason for the big drop – perhaps the usual reason: a cruddy earnings report and a corresponding ratings downgrade by one analyst. In their report published Tuesday, they announced a 65.5% drop in Q1 earnings, down to $0.16 per share in Q1 '07, compared to $0.45 a share for the prior year. And on Wednesday, UBS dropped them from “buy” to “neutral.” But is LIZ really that bad? With such a huge price drop, I can’t help but wonder if it’s time to buy.
Here’s their 1 yr performance.
And here’s 10 years.
No comments on LIZ?
It’s now at 35.14. If one buys at 35 is it likely to at least bounce back to 40 in the next few weeks for a gain of 14%?
Bounce 14%? Doubtful. 5% is more probable. That’s a hefty dumping of stock right there. How’s the insider buy/sell look?
If they are buying I would too. 20% is bloody…I wouldn’t be averse to risking a little capital in LIZ, but I wouldn’t expect a 15% bounceback shortterm.
[quote]
UBS points out that while Liz’s products are selling, discounting is rampant. (Coincidentally, my wife came home with a very nice Claiborne purse last night, which she got for next to nothing at a discounter. Good for us. Bad for shareholders.) UBS points out that management will have to cut the fat and shake things up.
Well, duh!
From where I sit, those are reasons to consider buying a stock, not selling – at least, now that a lot of the damage to the share price is already done.
Liz has a lot of work to do. Free cash flow has dwindled, even as the top line has grown, much of it because of a fattening SG&A line. Moreover, this space is full of tough competition, from Ann Taylor (NYSE: ANN) to Jones Apparel Group (NYSE: JNY), Coldwater Creek (Nasdaq: CWTR), and Hidden Gems laggard New York & Co. (NYSE: NWY). [/quote]
fool.com/investing/general/2 … -ugly.aspx
Maybe I wouldn’t…the discounting is bad news. I might play it for a quick bounce MT…but I would hope to get out fast.
Personally, I wouldn’t touch it until the fundamentals change. The price drop justifies the slashed earnings. What does the balance sheet say?
Remember, its companies like this that will be the first to fall once discretionary spending slows (which is impending with the inevitable housing crunch).
I’d say a purchase of this stock is as good as gambling.
INAP
owned a bunch of shares as a penny stock. Made it through a 1 for 10 reverse split. Sold half for a a near double. And now…finally…
Upgrades and good news. 
Daddy needs a new life! And this will help. 
Ok, I just had to brag about my baby. I bought ClickSoftware (CKSW) about 3 months ago. It’s a business software company that was trading at just around $3/share, was doing well and people were talking about Oracle or some other giant possibly buying it. I figured since it was such a cheap stock it would be easier for it to make very large gains. Ok, I don’t understand the technical stuff very well, but I sure was right about CKSW.
Check it out. In the past 5 days it has gained 40%.
In the past year it has gained 218%. It’s tempting to get out now while the getting’s good, but I’ll stay a little longer.
[quote=“Mother Theresa”]Ok, I just had to brag about my baby. I bought ClickSoftware (CKSW) about 3 months ago. It’s a business software company that was trading at just around $3/share, was doing well and people were talking about Oracle or some other giant possibly buying it. I figured since it was such a cheap stock it would be easier for it to make very large gains. Ok, I don’t understand the technical stuff very well, but I sure was right about CKSW.
Check it out. In the past 5 days it has gained 40%.
In the past year it has gained 218%. It’s tempting to get out now while the getting’s good, but I’ll stay a little longer.[/quote]
Congratulations on this call. Sounds like you have an annualized return of about 800+%
Do you have a target price to exit?