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General Category => Shares => Topic started by: Orca on May 13, 2015, 12:11:41 am

Title: Why do stocks go south?
Post by: Orca on May 13, 2015, 12:11:41 am

This is one reason why I prefer the INDI. For no reason, this superb company Omnia that had been performing so well for many years just out the blue went out of flavour. My "go with the momentum stocks" that I swore by has been proven wrong. It works for a while but eventually succumbs.
At least I admit it and the INDI seems to always prevail despite corrections.

Title: Re: Why do stocks go south?
Post by: Mr_Dividend on May 13, 2015, 06:41:34 am

That's not quite true as it's explosives division is linked to resources - so at least a big part of it's income is linked to the resource cycle.

Aspen might be a better example - the sell of by GSK was the trigger, but really, there is no reason why it's stock is/was hammered.

A while ago Capitec got hammered because it shared the same space as ABIL - even though they where run totally differently - just because it shared the same sector. Funnily enough, finbond - which on paper looks way more like Abil than capitec ever did, did not seem to get hammered as much.

Any way, all these "events" normally lead to one thing...a great buying opportunity.