Buy oppertunity

[WES]

I am a long term investor not a trader. I have been regarding these "dips" as good buying oppertunity to increase my portfolio (AGL,BIL,SOL,IMP,MTN,CFR,BVT,ASA,SBK ect ect)In this day an age, with geared instruments, I think that the professional and amateur traders are causing major volatility in the markets in their qeust for fast profits. any comments ? Have I got it wrong ? I mean a company like AGL does not depreciate within days or weeks ?..

[Wizard]

Correct....then you just wait a bit longer so you can buy them at the BARGAIN PRICE!

[Franksays]

My thoughts exactly. I agree that a the outlook for a company like BIL does not just change from day to day. The price does and so too does the premium of buying the company. I had been struggling to find companies offering value prior to all of the volatility. Its looking much more attractive now. Some nice deals are starting to appear on my radar.

[#4]

See Simon Brown's blog on Tickertalk dated 15 August 2010 "What Price Cheap? Finding Value". I think this is the link http://www.tickertalk.co.za/blog.php?user=SimonPB&blogentry_id=2102

[partridge]

As another( mainly ) long term investor I think that firstly the FORWARD PE's are at much more reasonable levels in companrison with 2008 when it was looney tunes stuff and as a result there are sound balance sheets in businesses with understandable models and with good income streams to be bought. Secondly because of all the fear around there are bargains- eg AGL BIL etc. We are not a cheap market( yet). There are some much lower PEs and even more attractive PE's emerging too in Europe - where the currency issue should not totally cloud the company's value - the Germans exporters come to mind - eg DB dropped significantly - DB would sell cars if you priced them in pre revolutionary tsarist roubles. Access into these and others is relatively easy.

[warhippo]

Correct. The facts as we know it is that we won't know the bottom. There are excellent stock at good prices (bargain prices?? - nobody really knows) I am now buying good div. stocks, preferable with a leaning towards a rand hedge "edge" to it and then don't "log in" too often to my account = my take only

[geordie1]

someone said the time to buy is when there is blood on the streets-timing the bottom is an ego game interesting but not that significant to investing in decent companies at reasonable prices-the market is now attractive to buy-if you want to wait it out and see if it becomes a market for bargains-not there yet-then exercise some more patience-who knows?

[#8]

Yip, you have to weigh up the risk of missed opportunities vs further downside. My biggest concern is always the time value of money. I want to know that my stock will move in the end. So buying value, you also have to buy quality. There is no point sitting with a bunch of small caps trading at rock bottom prices, if they are jsut going to stay there for the next couple of years. So if you want to be capitalizing on this drop - stick to the top40, and maybe some midcaps - IMO

[BoburUncle]

But who knows when the rock bottom is hit?

[Blik]

Skaap - is there a good correlation between liquidity and Market Cap? Some of my small caps have decent liquidity and some like Compuclear have almost none. Some of my mid caps have quite poor liquidity, but I am prepared to hold these for the DY I get on them.