Australian (ASX) Stock Market Forum

Buy vs. accumulate recommendation

Re: buy vs accumulate

I think there'll be some different perceptions, to me:

Buy - A technical trade, I buy only one lot of shares anticipating the price to go up and then I sell either if it hits my stop-loss or target.

Accumulate - I buy the stock on fundamental analysis (like BHP) whether it keeps falling or rising and I don't bail out, no stop-loss.
 
Re: buy vs accumulate

Hi Livid

Hope this helps you. Its from Huntleys

Recommendations: We use a fi ve-point recommendation
scale. There are two positive recommendations. In both
cases we see upside in the share price; the distinction lies
in the timing. BUY means the stock is suitable for purchase
now. ACCUMULATE means the stock is undervalued but
there is time to purchase as the price is unlikely to move up
suddenly. If it’s a stock you really want just take the opportunity.
A glance at the recommendation price ranges will
tell you how close the share price is to the Buy range. SELL
means sell all holdings now and REDUCE means sell part of
your holding (take profi ts). HOLD means the stock being
appropriately priced, so you should neither buy nor sell.
 
Accumulate vs Buy Recommendation

Not sure where else to post this one:

Been thinking for a while how 'Accumulate' is considered a lesser recommendation than 'Buy' whereas in my mind if I told someone a stock was a Buy now it would be at current price, whereas Accumulate would be buy, and keep buying cause this one's not coming down.

Someone care to explain?
 
Cheers for whoever moved the thread. Need to get in the habit of searching first...

So far query not resolved though...
 
Halfwheel explained the difference in terms of Morningstar's site, otherwise you can apply as you like!

Accumulate otherwise suggests buying more if you already hold, Buy means Buy!
 
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