Robbie Burns
Robbie Burns's columns :
25/04/2005Making Money from the Markets
11/04/2005Buy Winning Companies not Losing Ones
29/03/2005ISA Shares
13/03/2005Trading Patience
28/02/2005The Bear Necessities
16/02/2005Stock Market Psychology Seminars
01/02/2005Share Imagination
19/01/20057 Deadly Stock Sins
10/01/2005Happy New Year
21/12/2004Stock Picks 2005
13/12/2004Suspended Shares
29/11/2004Share Teasers >>
12/11/2004spread-betting-secrets
03/11/2004Nervous Nineties Stocks
28/10/2004The Naked Trader Thread
25/10/2004UK Retail Stocks
15/10/2004New Stock Research Tools
08/10/2004Look at the Whole Picture
29/09/2004Vanco and Bullen Energy
13/09/2004Market Psychology
31/08/2004New Stock Issues
20/08/2004Trading Volume Codes
12/08/2004Dire Markets
04/08/2004Company Research Tools
27/07/2004House Prices and Covered Warrants
20/07/2004Rocky Stock Markets
13/07/2004Company Research
05/07/2004Recovery Plays

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Robbie Burns – The Naked Trader

Robbie has been trading full-time since 2001. His book "The Naked Trader" (which also has useful information on how to use advfn) has become one of the biggest-selling finance books, reaching the top 150 books on Amazon - order it here. Trades made for Robbie's website have amassed profits of more than £300,000. You can read about his buys and sells daily at www.nakedtrader.co.uk.


Share Teasers

29/11/2004

There are certain shares that can only be described as "teasers".

They're a bit like some girls I used to know…they give you a bit of a come on… but then don't deliver the goods. I'm sure you know what I mean!

There they are, all lovely looking with their shiny profits and increasing dividends. Some even come with low pe's.

Then there's the gorgeous looking share price. Going up nicely and just about to soar higher.

That's when you pounce and buy.

Then suddenly just when you think you're building up a nice relationship, it all goes cold.

The shares will carry on teasing you, suddenly going up a few points. Hope swells back and things look great again.

But then they disappoint time and time again and the share price sinks back.

So how on earth do you avoid a teaser?

Well, you can't. You've just got to spot that you're being teased, sell, and then cut all ties to ensure it all doesn't happen again.

It's happened to me a few times. I've been teased endlessly. But I've learned my lesson now and it's not going to happen again.

An example of the biggest tease of all time for me is a company called Hill and Smith.

It always promised me a future together, but it was all just sweet talk.

It showed me lovely profits and a small market cap. It had a seductively low pe ratio, a nice little dividend and promise of more profits to come.

So I bought a couple of years ago at 100p - it even went to 110p but fell back, and time and again it rose a few pence only to come back every time. We had a falling out and I sold.

But I couldn't resist its allure and bought back in again twice more, but both times my hopes were dashed as every time it promised a lovely rise it fell back refusing to go above 112p.

I should have just taken it off my monitor! But I can't help but keeping an eye on it.

I nearly bought again the other week. It actually went above 110p and I was so tempted. Then it went to 120p and I thought I had missed out. But oh no, not Hill and Smith! It clicked back to below 120p.

What with commission and costs, my long-term relationship has left me with nothing but burnt hopes and small losses.

What can we learn from these types of shares? We just all have to realise that some shares are going to remain unloved by the market and private investors and will continue to trade at undervalued prices.

There's nothing we can do about it except move on.

How do you spot a teaser? Well, it's not easy. You'll know quite quickly though - you'll begin to get irritated and want to end it but you can't.

You've just got to get out and move on.

The only time to get back in to a teaser is if it really breaks out of its small range. Let it rise up quite a few points before buying in.

Let it prove itself and that the market is taking real interest.

That's when it stops becoming a teaser and becomes a winner. Suddenly everyone wants to know and it'll soar at last.

For example Havelock Europa used to be a teaser for me. I kept buying in the low 90s but it refused to budge much. So I gave up and waited. It suddenly burst through 100p and I bought at 105p or thereabouts and it's now at 130p.

So I guess what I'm saying is, if a share is sitting there doing nothing get out and use your money elsewhere and be patient. Get back in when the teasing is over. Don't worry about missing out on a few points.

It looks like it's going to be a cracking end to the year… but beware of the Santa Claus rally - I don't think January is going to look so hot and I expect to be taking profits in the last couple of days of the year.

It's been quite easy to make money recently - two of mine especially have raced up - Carrs Milling and Dart Group have done me proud.

Recent buy Isotron, which I think looks to have tremendous prospects is going well. Mind you, it's done nothing for two days.

It better not be a teaser!


You can read Robbie’s daily market comments together with his latest buys and sells at his website www.nakedtrader.co.uk

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