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I bought some more Promethean World as the price is now getting really silly. This means the company is either doomed or will rally big time at some point.
I’m not certain it’s not doomed or I would have bought more but, I think the chances are on the recovery side of the dial.
Meanwhile I didn’t buy any Lamprell on the same logic. This is definitely a fishy one. I wouldn’t be surprised if this went bust or some nasty dilution occurred. How can a company that makes huge pieces of engineering kit be apparently so clueless?
If you give their intelligence the benefit of the doubt then you have to feel very nervous that the fool at the table of this particular game is you.
I also bought a clip of First Group who “un-won” the railway line deal on the basis of classic government incompetency, fessed up to only at the barrel of a judicial review. According to Branson the deal was a loss maker anyway, so the shares should have gone up, or at least stayed where they were. In any event the drop was a heavy one back to 2008 credit crunch levels, so that gives me cause to buy some.
I hope you see a pattern here. Buy cheap stocks with an obvious understandable problem or at least a containable difficulty, once these shares are at a huge discount to a “normal business,” buy then ride out the storm. Some will sink, but most will rise a long way.
This is basically contrarian investing plus value investing; in a way a double dose of contrarian investing. The herd follows neither tack and that is why you can bank strong consistent profits using it. The best thing is the herd will never like this tack so it will always be unpopular and profitable.
