BAW - BARLOWORLD

[PILOT_ROB]

Hi Guys - broke my rules on this one and greedily bought it for the dividend. Flew through my stoploss, and now bleeding red !!!! Fundamnetals and results all looked great - actually excellent - but it just keeps getting sold downnnnnn. Any views would be greatly appreciated.

[john_1]

Err.Keep your rules...it sounds like your reason for buying and the reason for the rules are not in sink.. Dividends by nature will lead to a capital reduction.

[#3]

Market always looks forward. my guess is that sentiment right now is that BAW is reliant on infrastructure spending in SA to generate business. Trevor is forecasting a budget deficit (I think) so it is unlikely that government is going to increase their spending. Mines are cutting down on capex, so the big question is, where is BAW's business going to come from in the near term. i have the same problem with ACL. PPC, in my own opinion only, is better positioned to capitalize first on any growth.

[akashmaha]

Rule 2 is do not forget Rule 1.

[platsak]

When people starts thinking of buying cars again and the banks starts considering financing them again instead of taking back 6000 od cars a month and when construction contracts arent cancelled every second day. This one burnt me as well a while back. I placed it on the the watchlist. It my opinion that we wont see fireworks before sometime next year.

[PILOT_ROB]

Thnx John - understand this and happily took the dividend. It just concerns me that the share is getting hammered !!!

[john_1]

Stand back from it..Evaluate it as if you have never seen it before in your life.. if it looks like a buy..then hold..if it screams sell, do so and write the loss off to the taxman.

[PILOT_ROB]

Thnx - trade the price I guess - problem is I'm tempted to buy more & then rule # 3 is probably broken.

[john_1]

is buying a falling share the best you can do with yor cash?

[#10]

cat is cutting back 20'000 jobs soon, and that could have an effect on bar

[dookie]

Hell... don't know about the fundamentals. But I can't see anything on the chart which would indicate a rampant rally! It seems more a case of fizzle, fizzle, fizzle... die. There does seem to be a hint of a falling wedge on the weekly chart from 2008 - 2009 and if it breaks out of that there should be a bit of a rally. But so far.. no breakout.