Recovery Plays

traderx

Active member
146 2
Thank you to all our members who contributed to the thread on PWs. These 30 PWs have taken place since August with an increase towards end of year. I have collated the results, which are shown below. It is no suprise that two thirds of the companies involved are tech OR telecoms stocks. I should make it clear that WGG did not, as far as I understand warn on profits, the fall in share price was due to an accounting issue.
WARNING
The rule is that when a company warns on profits it can sometimes take a long period before investors return. Sometimes the share price never recovers. That is not always the case, hence this thread. Part of my strategy will be to monitor these recovery stocks, which might respond to any upturn in market conditions. LOLs!

The downside is that if things get worse in America more PWs are expected because my research suggests that many firms do business with the US. Also, it is possible that some companies will warn on earnings again. RESULT: = MORE PAIN.

Taking the positive view, if we are serious traders then we cannot afford to ignore these potential recovery plays. Some could yeild substantial short term gains on good news or improved market conditions. Here they are:

AAT
ACC
BVC
CHTR
CLA
CSV
DUC
ETE
EXI
FRH
FUR
HRR
ISL
ISYS
KSS
LCI
MNGS
PHTM
PLM
PON
QSG
RR# or RR.
RTN
SEM
SOH
SSL
TRK
TSP
VDY
WGG


No financial advice intended

Tx
 

Max Damage

Member
83 0
New to the board and not had chance to read all but could I add a couple of recovery plays

Eidos - EID

Sci - SEG(no profit warning but results delayed till 18 Jan. However we had a very +ve trading statement late DEC. Am a holder)

Vislink - Directors buying, price very stable and in the right place at the right time with digital TV
 

CHARTY

Active member
119 1
IMHO dangerous thread, dangerous choices, dangerous strategy.
I have done TA on few of these on the last thread I posted.
Should we not wait for confirmation of a turnaround?

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The above does not represent financial advice.
 

traderx

Active member
146 2
Charty

Make of it what you will, the idea is NOT to buy these stocks but to use this thread as a reference point. It is easy to forget just how many companies have warned on earnings. That was the primary reason for the research. The lesser reason is that some stocks will eventually begin to recover, albeit slowly after everybody has forgotten about the PW. If we keep them in this thread it might be useful research. All members have sufficient experience not to get caught out buying stocks which are subject of PWs until some new information or evidence emerges. With so many stocks surely nobody will really consider buying without some further research and a good reason for doing so. CAN I PLEASE HAVE VIEWS FROM OTHER MEMBERS. If the consensus of opinion goes with charty then I delete it PM tomorrow. End of research, end of story.

Tx
 

Riz

Experienced member
1,266 5
Hi Tx,

I find this thread quite useful and thank you for the amount of time and energy you spent on it...I am sure most of us follow some of them after the PW..it is quite handy having them listed here for future references and contributions as to any signs of recovery...you're right I also think that members are experienced enough not to jump on any of them without further research and signs of recovery..

hope you're having a nice week end..

rizgar

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[This message has been edited by rizgar (edited 08-01-2001).]
 

CHARTY

Active member
119 1
Trader, what is PW?
Fine with keeping the list as a reminder.
Still, I would suggest opening a new thread for any of these stocks we deem is worth buying.
This way we can discuss more in details the pros and cons of going long that specific stock.
How does this sound?

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The above does not represent financial advice.
 

traderx

Active member
146 2
I have reconsidered this thread in the light of Charty's first response. Charty is an experienced member and her views must be respected. If one member is uncomfortable with this thread then it has to go. My decision is therefore taken. I will delete it at 6pm tomorrow (8/1/00). If the list is useful to anybody this will give time for you to print it off.

Thank you to Rizgar for your response and support and to Charty for your updated response. Problem is, I actually do think Charty has a valid point and the thread must go for all sorts of reasons.

Please see my new thread to explain my plan to evaluate these shares.

Max Damage please accept my apologies as I will have to delete your first post. WELCOME to Shark Invested. Can I suggest you start a new thread on EID and SEG. If you can do a TA fine, if not ask for one and somebody will usually help. The situation today is highly unusual for SI, but I hope you like the style of the site. We do not fall out, prefer to show understanding and respect for other members. That is the strength of the membership. By the way Max Damage, class name, 'the business'. Look forward to hearing from you soon.

Tx
 

Riz

Experienced member
1,266 5
Hi Tx,

I really can't see any reason why you should delete this useful thread..listing companies that have issued profit warnings does not encourage members to buy them, on the contrary it does warn them about the problems in their past...some of those you've listed are already under discussion in various threads any way, such as isys, pon, ete, trk, etc...I also don't think Charty read the previous posts regarding the purpose of this listing before saying "dangerous thread, dangerous choices, dangerous strategy" and jumped to conclusion thinking that everyone is going to start hunting these stocks and felt she needed to warn us..but as it was put when you started this discussion, that was not the purpose...the purpose was well put in your first reply to Charty...

Still your thread your choice...

[This message has been edited by rizgar (edited 08-01-2001).]
 
TradeX, I think that this ia a bit of an extreme reaction. All that is happening is that you a provided a filterd list of companies with profits warnings, nothing else! On this basis, all filtered/data mining exercises are dangerous. Any further analysis on these companies is down to individuals.
 

Uncle

Established member
671 2
What is going on here.........this sounds like somebody being called OUT in a playground so decides to take his bat and ball home so nobody can play.

It is of interest to some so why spoil playtime.

As for analysis on companies with profit warnings, then for each to their own how they interpret. Being purely technical in my decision making - matter not what is said about a company be it good or bad news, my decisions are based on what does the Market think where its price should be.

John

John

[This message has been edited by Uncle (edited 08-01-2001).]
 

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