STRESS, STRESS, STRESS... Life is much easier for the investor - just look at the thing - if the balance sheet is strong and you like the "story" - all you need to do is ask yourself "Is this asset way undervalued?' If the answer is a definitive "YES,", then start buying. Accumulate until your appetite is sated and, in the meantime, get on with your day. The investor even has access to more "plays" since liquidity is no longer a major factor. In fact, he has access to deeper value shares and greater growth prospects (often combined) than the trader.
Just trying to get the timing right. This is not a long term hold for me. This thing has been in decline since Feb 2012. I just think it's good value right now at at PE of 6.6. So I expect to make between 5-10% on the short term an get out. With that margin the risk reward ratio is so small, that if you don't get the timing right, you can just as well just not trade this at all.
Which brings me to the essence of the above comment. Why bother?. Trade the most obvious movers or better still: Use your money in the most productive way possible to buy the best value asset you can. I understand that if one only has a few rand - it becomes an all or nothing scenario. Still - in that case rather trade the marker leaders...
I got hit nice and hard on this one. Took out some eft's a few weeks ago, and got hit by a horror story of note on Friday morning. Licking the wounds, and wondering what to do with it .... that SENS is just FULL of bad news, though the increase in provisions means the money is still in the books there somewhere ... not losses *yet*. Market response feels like an over-reaction.
My take on this is that the market was expecting this for a while now. The share has been in decline for a year, so this reaction was way overdone in my books. Worth a punt at these levels, but if that 2230 level break, we could see this free falling some more with support levels few and far in between.