Picking up Bargains

28th Nov '21 by Pedro181

5 comments 1808 reads

With the initial (and ongoing) reaction to Omicron, very interested in peoples views of what potential deeply discounted bargains are out there.

I am watching closely:

Scs (LON:SCS)

Hostmore (LON:MORE) (I hold)

Electra Private Equity (LON:ELTA) (I hold)

Saga (LON:SAGA) (I hold)

Boohoo (LON:BOO) (I hold)

International Consolidated Airlines Sa (LON:IAG)

Somero Enterprises Inc (LON:SOM)

Cmc Markets (LON:CMCX) (I hold)

These are widely discussed on numerous threads and hence not much I can add, aside from I’ve had a torrid few weeks/months as you can see….fortunately I’m not planning on retiring for at least a decade (maybe 2 now!).

With that in mind, plus the fact timing the market appears way beyond me and many, this is with a view of long term and hence looking for strong balance sheet for survival before thrive.

Thanks

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Rusty2

28th Nov '21

There are certainly many to consider, some of the travel sector have been hammered lately, but I think too risky at the moment.

One l hold is Volex (LON:VLX) which is looking good value now. Also Up Global Sourcing Holdings (LON:UPGS) and Reach (LON:RCH),

Quite a few commodities stocks have fallen back such as Rio Tinto (LON:RIO) and Anglo American (LON:AAL), Ferrexpo (LON:FXPO) also.

Belvoir (LON:BLV) and Property Franchise (LON:TPFG) has also fallen back due to slowing property sales.

Cmc Markets (LON:CMCX) should benefit from volatility in the markets, also £IGG.

I topped up Somero Enterprises Inc (LON:SOM) on Friday, I’m looking at Scs (LON:SCS) as well.

Sthree (LON:STEM) and Robert Walters (LON:RWA) both of which I hold have also fallen back.

I will see what happens next week, will there be a bounce or further falls?

MrBeak

Scs (LON:SCS) Looks very very cheap

AnonymousUser1822519

Ferrexpo (LON:FXPO) looks super cheap. Iron ore prices have fallen 50 percent since June 2021, helped by the Evergrande situation no doubt, but this is one to keep on the watchlist for when iron ore prices recover. The charts show the trend is falling and making new lows so best to avoid just now, but if you can spot a bottom forming than worth considering I think for a medium to long hold.

Also, I've been focusing only on small caps for many years, but I've just realised with Stockopedia's help(screens) that this strategy was putting my stock selection process at a serious disadvantage by limiting my investing/trading choices. With institutional investors driving big price rises, returns on midcaps can be very profitable with less volatility risk than small caps which depend more on their smaller size for greater returns since II's are less likely to invest in this market.

As for timing the markets, it amuses sometimes how many people just rely on fundamentals. I use half fundamentals and half technicals in my reserch before I even touch a stock. Also risk management seems a foreign concept to many too, which is a shame because it only takes one big loss to wipeout your bank balance, and decades to recover if ever.

dfs12

29th Nov '21

Interesting article. It looks like the current news flow on omicron is relatively positive (causes mild symptoms it seems) - but still early days. Highly probable that things will flip between good news and bad over the next couple of weeks so volatility will be high.

I suspect their will be a large number of people/institutions trading to readjust their portfolios to the apparent risk/opportunities. Therefore the clear winners for me are Cmc Markets (LON:CMCX) Ig Group (LON:IGG) and Plus500 (LON:PLUS) - they should thrive whether omicron is good or bad. Some are suggesting that if disease from omicron is only very mild then it could actually be a good thing as it will provide a covid booster to all (or nearly all) with no direct distribution costs.

Neil D56

Would steer well clear of any travel-related stocks for the foreseeable future. I cannot see any worthwhile recovery there so wouldn't touch them with a bargepole. Their indebtedness and near bankruptcy in some cases makes them uninvestable pariahs. I agree with the spread bet companies Cmc Markets (LON:CMCX) and Ig Group (LON:IGG) as they just thrive on volatility and am sure there is more to come on that score!

Boohoo (LON:BOO) is trading like a dog- there are better retail bets around. Although I don't hold any apart from B&m European Value Retail Sa (LON:BME)

Picking up Bargains

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Pedro181

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