I have always been a fan of BSR, but lately I got sucked into the trap of listening to media hype around stocks. I had ditched my BSR's last year - and this year decided that construction was worth having another stab at. So I jumped on board with Stef Stocks - a little bit against my better judgement. I have always been a fan of small cap construction - I have repeatedly posted on why I believe this, but I just felt that BSR was more geographically and industry sector diversified. End result? I am 10% poorer on my SSK holdings, and BSR is in a bit of a new rally. Stick to your own beliefs! It feels really bad watching a stock that you know you should be in rally rather than the one you finally settled for
Voda, that strategy is called cost averaging, and is not a great idea, IMO. Traders are vehemently opposed to cost averaging, and investors should treat it with caution as well. Cost averaging is punted by the unit trust companies, and institutional investors because they maintain that you cannot reliably time the market. It is fine to cost average say an index, or a unit trust fund, where your risks are spread, but cost averaging on a single stock is re-inforcing failure (IMO). And Sun Tzu would be wrapping you on the knuckles for not having read his best seller, the art of war. Personally, my strategy is to hold onto SSK, unless it breaks the 1000 range, in which case I will dump it. I am still bullish on construction, but I would rather get back into BSR if I was to increase my construction exposure. Otherwise I will have all my construction eggs in a single basket, which is looking like it has holes in it at the moment.
Hi Skaaptjop, I heard that SSK would have been negotiating to build some of the stadiums necessary for the Qatar football world cup in 2022. However, I think it is just a rumour as I can find nothing official in the engineering or financial news. However again, someone has to do the building for this huge project, right? Hope it will be our pick...
In general do you guys see any signs of a turnaround in construction or is it the expectations looking forward? The latter is so difficult for me to judge in tough international economic times like these. The international construction companies are probably in same boat as we are and might be strong competition when it comes to bidding?
SSK, in my opinion is an awesome stock (No Pun intended) In terms of price/value I believe that it is one of the best in the Construction Sector. I believe that even with the current announcement of less 19 - 20% HEPS, the value should be at least 1320 so anything under that is a steal. The problem is that the construction industry is usually one of the last sectors to turn around after an economic downturn. My feel is that if you've got a long term view on investing, then buying stefstocks at the current price will be a bargain buy. Remember, you only lose money if you sell?