Sliced &, Well Sliced again.
Deep diver alert!!!!!
Funny isn't it how I decided to forgo some of my conservatism when I started using the Stockval software to give me an idea of the valuation of the company I was starting an AIM program on.
The fund managers that run Stockval have a philosophy that diversification is only there for people who don't know what they are doing.
I think after todays episode with Credit Corp (CCP.AX) they will be keeping very quiet about this.
I purchased some CCP just after a profit downgrade, one week it was trading over $10 the next it was $5, I picked some up at $5.50.
Now, in hindsight, had I not been using Stockval and still relying on Tech analysis I wouldn't have touched it with a bargepole. Especially as the old saying in the market goes that when one downgrade is issued the next one can't be far away.
The stock began to fall and I purchases small quantity more at $4.00.
Well the second profit warning came out today and the stock got sliced to 91c by the end of the day, stunned to say the least.
The market is in a savage mood, shoot first and ask questions later.
I think I may start shifting some of my holdings into ETF's now that they have become more widely available over here.
So much for fundamental analysis, it is only as good as the amount of truth in the figures that the company managers release.
Regards
Neil
