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Bargains Galore

Discussion in 'ASX Stock Chat' started by MovingAverage, Mar 18, 2020.

  1. MovingAverage

    MovingAverage Smoke me a kipper

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    Just curious, many blue chips have been hit extremely hard this past week or two. Many of these companies are hitting prices not seen in the past 15 years or so. As tempting as it is to buy some of these companies I'm not brave enough, yet. Is anyone here buying any shares at the moment or is everyone on the sidelines?
     
  2. wayneL

    wayneL Rotaredom

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    I would be very worried about but actual forward earnings are. Things may look cheap on historical earnings but I have a strong feeling things are changing in that. regard.

    Evaluation is nothing less than a crap shoot at the moment in my opinion
     
  3. Dona Ferentes

    Dona Ferentes

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    Not buying.

    (A lot of companies aren't that much cheaper than a year ago. Fifteen includes the GFC)
     
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  4. MovingAverage

    MovingAverage Smoke me a kipper

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    Indeed...anyone trying to estimate forward earnings better have a very reliable crystal ball.
     
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  5. frugal.rock

    frugal.rock

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    I bought some coch COH today...
    Held for 50 minutes...
    In at 165 out at 175... close to the high for the sell, but the buy was very ordinary timing....
    For an intraday trade, ATM the market is like the ocean, don't trust it and don't turn your back to it... like I did with Afterpay today. Bought some at $15.50..., got busy with the day job, and whadya know?
    Slammed like a puffer fish on the jetty! Still dropped another 15% !
    Another long term keeper now.
    F.Rock
    PS, I should be on the sidelines...
     
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  6. MovingAverage

    MovingAverage Smoke me a kipper

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    I hear you. Have to admit that all this crap has me re-evaluating my whole approach to trading--do I move away from longer term hold strategies to shorter term strategies. One thing is for sure about the current chaos, it is an opportunity to reevaluate trading approaches
     
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  7. frugal.rock

    frugal.rock

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    Here's a thought, why doesn't ASIC implement trading halts or suspend trading for 20 minutes on individual stocks crashing more than say 25% in a day, just for the time being.
    Or something similar.

    Would shut the traps of the scaremongers.

    Bargains galore? No, it's the new normal, except with 10x the volatility and volume...
    Take AEI for example, biggest volume ever today, I believe.

    F.Rock
     
  8. MovingAverage

    MovingAverage Smoke me a kipper

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    That's an interesting thought and I have to admit I don't like the idea. If I want to sell at a heavy discounted price and there is a buyer then I'd like to make the trade. I'd be very frustrated if ASX stepped in to stop the trade. I get they don't want massive market moves, but sometimes they need to step aside and let sellers/buyers do their thing.
     
  9. MrChow

    MrChow

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    Look at the banks first half of 2021.

    There's a possibility Coronavirus pops up again from October (flu season) in the U.S and Europe. If there's multiple waves that elongates the timeline I don't think now would be bargains.

    So then with Coronavirus leading to another wave of quarantines that's when the bankruptcies are likely to kick in. The aftermath in 2009 of financial collapses took a few months to wash through and find a bottom so that'd take us to about 12 months from away or mid 2021.

    At that stage all the banks would need to raise capital to offset their bad debt losses and you could pick the one or two with least solvency issues at crisis prices. EG - WBC under $10.
     
    Last edited: Mar 18, 2020
  10. frugal.rock

    frugal.rock

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    Just looking at things.
    Kiwi's might be having a party of sorts...a parity party.
    Aussie dollar virtually at parity with the Kiwi dollar...

    I think we should all go to NZ and take their jobs.... work for 8.99 months then come home and collect the tax paid... does it work in reverse?
    I don't really mean that, just had a bad experience at the hands of Kiwis who do that, you see, I am white pakea (white pig) according to the mouldy people's.... but I guess there's not a lot of incentive anymore if the dollar is at parity, unless we still pay higher wages here?

    Got sidetracked there...
    Bluescope Steel. BSL.
    With our dollar going to rack and ruin for reasons unknown to myself, I can see that Bluescope may be a slow winner out of the sitch.
    AUD to USD around 0.58...
    AUD to CNY around 4.1... was 4.7 s couple of weeks ago.
    Good quality Aussie steel, cheap as chips?
    How can we take advantage of the dollar being down? Cheap exports for others, expensive imports for us.

    Ditch the world, make Australia great again. Stop the world pillaging, plundering and exploiting OUR resources.... create industry that has been sold out/ lost here, create jobs.

    Doesn't the grubberment realise, once you sell an asset, you don't have control over it.
    It's not yours anymore?
    Like Metcash, have built new warehousing on new premises with state of the art equipment, but have now decided to sell and lease back due to current sitch.
    Sounds like John Howard policy....

    We need a little Chinese commie common sense and have more state owned enterprise.

    Pierce off Jack Gibson...
    Bring back the biff whilst we create at it...

    F.Rock
     
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  11. hja

    hja

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    This must be the thread for taking a haircut.
    Or should I say ouch to full epilation/laser treatment?
    Hairy and proud!
     
  12. SirRumpole

    SirRumpole

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    With all the panic buying going on, the supermarkets must be making a killing and putting up prices as well.

    WOW anyone ?
     
  13. rederob

    rederob

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    The bargains out there will be those equities that have been heavily marked down in the panic, but are barely affected by the downturn as their company's activities are in areas such as food supply, technology, medical equipment manufacture or supply contracts to government/military. Happy for other to add sectors I have missed.
    As a gold bug, there are many good producers which posted reasonable profits in FY 2019 on an average gold price of around $1250/oz. These same producers thus far in FY 2020 have been selling into a market that is, on average (ie after falling back as low as $1451), presently well over $250/oz higher. You can check out the likes of NCM, EVN, and RMS etc which I believe will report significantly better outcomes than last year.
    Aside from the above, I would avoid the equity markets from an investor perspective as I believe the all ords (XAU) has a lot more downside before any semblance of recovery.
     
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  14. moXJO

    moXJO menace to society

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    Does gold and oil have a correlation on the charts?
     
  15. rederob

    rederob

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    Woolies was a screaming buy on it's Black Friday lows but has since bounced nicely and I reckon represents better value than money in the bank.
    However, from a longer term perspective the average consumer's buying power will be hit hard and that is likely to be reflected in WOW's bottom line. Additionally, while all the supermarkets are presently going gangbusters, those customers stockpiling the staples at present will not be returning until they have run them down, so the net effect is relatively flat.
    So while I reckon WOW is a good buy if you really want to spend money now, I don't believe it represents a particularly good value proposition from the perspective of a "normal" market.
     
  16. moXJO

    moXJO menace to society

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    It actually doesn't mean pig. Nor is it disassembled from Maori words of "white" or "pig". If you want to delve right into it, it's probably closer to Pakepakeha, Patupaiarehe or
    Pakepakeha.
    I've heard this go round a lot though.
     
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  17. UMike

    UMike Captain Klutz

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    This is a non insurance claimable crisis so how is QBE affected. If it is as I believe Then at 50% would be a barging.
    I sold a lot 6 odd weeks ago but only bought back 25% (in volume) of what I sold. Not game to buy too much more
     
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  18. qldfrog

    qldfrog

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    They do already, I documented this monday on another thread:
    I tried to sell SOM on Monday well before its trading halt, there was a buyer at a price but the lower I could sell mine was 15c above that price.I sold 1 share at 2.3 from memory, and paid @10 brokerage
    Now in trading halt...
    Bell Direct reasons for refusing my sell request was : it would break ASX rules..whatever they are
     
  19. MovingAverage

    MovingAverage Smoke me a kipper

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    I had that issue with BD when I was I was trying to offload ZIM a few weeks ago. They don’t want you shifting the market
     
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  20. So_Cynical

    So_Cynical The Contrarian Averager

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    I bought CSL during the GFC for about 24 dollars per share, has a long way to fall to get back to that price, WOW was like 3 bucks i think and CBA about 20 something, Mac Bank 18 bucks.

    However many are back to GFC levels and under, question is what's the first recovery driver? Oil, Gold, Property, some of the REITS got hammered today.
     
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