Turn around story? Potentially, but this is risky at this level
I don't usually do value, because value segment is pretty much dead, leaves more people caught out that profitable and in the mean time you could be making big gains on the trend train.
Saying that, I don't want to box myself in one sector. Sometimes a little bit of diversification can be good for the portfolio.
So lets begin with a breakdown - observations I will make from Aston Martin Lagonda.
after a mid year report, earnings missed their estimates by huge margins and AML sold off hard! The last earnings call showed an improvement and beat the estimates by over 30%, but were still losses.
Now we are seeing the bullish divergence and the price is again butting up against the down trend resistance line once more. If it break out, then that's great, but this stock will again fall hard if it fails. Management of risk is again so important.
Don't get caught being one of the majority of pure value investors who loose huge amounts of their trading/investment accounts. This is high risk!
Unfortunately, with value stock and turn around stories, there isnt a clear target. Probably best way to play this is to wait for more analytical data/PR from AML and a break out.
Saying that, I don't want to box myself in one sector. Sometimes a little bit of diversification can be good for the portfolio.
So lets begin with a breakdown - observations I will make from Aston Martin Lagonda.
after a mid year report, earnings missed their estimates by huge margins and AML sold off hard! The last earnings call showed an improvement and beat the estimates by over 30%, but were still losses.
Now we are seeing the bullish divergence and the price is again butting up against the down trend resistance line once more. If it break out, then that's great, but this stock will again fall hard if it fails. Management of risk is again so important.
Don't get caught being one of the majority of pure value investors who loose huge amounts of their trading/investment accounts. This is high risk!
Unfortunately, with value stock and turn around stories, there isnt a clear target. Probably best way to play this is to wait for more analytical data/PR from AML and a break out.
Comment:
There has been a new story on daimler stake in AML. A technical partnership they are calling it. I see some alternative shares have shot up 16% today. Good news for AML. Perhaps a turn around story after all.