Mark & Starry's stock exchange thread

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Sarah - how's it going?

-- Mark C (boyincorduroy@yahoo.com), December 05, 2001

Answers

I've still only got my control group, not had time to research properly who to get into. I was thinking telecoms, banks, refined petroleum and courier services (deutsche post) ect as my sectors to get into, but they've not been researched at all. What do you think? Also I had problems with the AVFN website last night. I'll try the iii website which I also signed up for.

-- Sarah (starry@amazingness.com), December 05, 2001.

Well, it's always a good idea to research areas you understand, if not know all that much about. But be careful - some areas may look like good areas to invest, but if the sector is very fashionable at present, the likelihood is prices will be high. Alternatively, you could look in highly valued sectors for the companies which aren't doing so well, and if you look at the details of these companies and they seem very promising to you, they could make a good targte. Such a strategy is called value investing, i.e. finding hidden value that for some reason the market hasn't recognised (yet)

Igf the market rises, then momentum investing (putting you money in the areas/stocks that are rising the quickest) can often give a good return, but you need to watch out, as the market can quickly "correct" itself and lower the values of such companies once the momentum runs out.

At the moment, though, it might be wise thinkign of a comapny which, for whaetevr reason, you rate very highly or believe has a fantastic future. There is a vast amount of research to be done, but watching prices go up is the best bit, so get stock=picking!

-- Mark C (boyincorduroy@yahoo.com), December 05, 2001.


FTSE had a good day today, Sarah - your control group showing a nice profit? CW. is now up 12p since I bought - a healthy (and real!) 17 profit! Bonus! EXL also rallied - could be on the way up, get on board...

-- Mark C (boyincorduroy@yahoo.com), December 05, 2001.

My tip: PHARMACEUTICALS! but avoid bio-tech companies.

-- sleepy seaplane (freedunit@hotmail.com), December 05, 2001.

lesson 3: never listen to tips from aeronautical vehicles, especially if they're not even propoerly awake.

Pharmaceuticals are always good, though - but they tend to be quite highly rated. The smaller companies can give amazing returns, but I wouldn't touch them with a bargepole - far too risky, though occasionally fun for a flutter (Huntingdon Life Sciences, anyone?).

Mark's tips for today - Boots (BOOT) and Bookham (BHM).

-- Mark C (boyincorduroy@yahoo.com), December 06, 2001.



Sarah - new answers! Bit of a down day on the market today - US unemployment news hammered the FTSE a bit, though it may lead to a reduction in the US Fed rate. Any further thoughts? Don't tell me you're bored already?

-- Mark C (boyincorduroy@yahoo.com), December 07, 2001.

Today's tips - still BHM and EXL (which I hold, mwahahahaha), though keep an eye on both and watch for a tunr. For both it might be as early as first up tomorrow.

Looking forward to an update!

-- Mark C (boyincorduroy@yahoo.com), December 10, 2001.


Sarah - are you still there? No-one wants to share my hobby!

-- Mark C (boyincorduroy@yahoo.com), December 11, 2001.

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