Club Mulgoa

Friday, December 23, 2011

Stocks that fell with good announcements

When I topped up ABU at 5.7c, I thought it just cannot go lower. Yes, it can! Why investors sell when there is a good announcement is always puzzling. If I have to predict which stock will do well next year, it has to be ABU. You just have to wait patiently as an investor with a deep pocket appear on its register.

Already the 3 year performance is over 50%pa. Why my readers are uninterested in this stock also puzzles me. I follow its announcements closely.

Another stock with consistent great announcements is IMA. I once reproached the chairman at a mining investment seminar as to why the share price often falls AFTER a good announcement. History is repeating itself.

When you have a good announcement, and the share price goes up but disproportionately low, then I consider it to be a "fall". Here you have CDU.

With RRS, you can understand why despite good oil discoveries, it has been bad. The prime tenements are in Georgia where the first drilling revealed nothing, and in Puntland (in Somalia north) where there is virtually no government.

KMC maintained output of gold and gave some good announcements, but few want it. By my calculation, the PE is 1 but I could be erroneous in my assumptions. At least with LSA, the share price has gone up. It is in the same shoe as KMC.

GUF finds more coal but its share price kept slipping. Gina has now appeared as a shareholder so it should be at its bottom. And coal stocks are subject to takeover speculation. So why did GUF, CLR, CEO fall?

Lots of stocks have been falling, especially gold stocks. Too many to list. I was chasing PRU on Friday but missed because it started to rise. This is a producer with more discoveries added.

My stock for 2012 based on Friday price is ABU. I see it as my equivalent of GIR. It takes multiple lashings on my colleagues' ears before some bought it. Now, that I have gone into a blog, even with multiple visual lashings, only one soul has bought. What has happened to brainy people? Of course, most don't read my postings anymore. I no longer pull my hair as this is my financial diary rather than a selling website. I have made many dud investments too but I only post those that have consistent good announcements or have good prospects.

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