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1.Market Observations, 2.Strategy, 8.Was Sticky

21 Sept 2016 (AFR) – ASX tips: Darlings and deadbeats of the Australian sharemarket

[COMMENT: The key points in this article are something that every investor needs to bear in mind. The financial markets work because different people have different opinions about what is fair and what is not… about what is cheap and what is dear… about how to make money… Read on.]

(21 September 2016, AFR, p24, by James Frost)

‘On every sharemarket trade, there is a buyer and a seller. One who sees blue skies and another who sees doom and gloom.’

‘It’s a fact easily forgotten when the market is playing stacks on after a disappointing quarter of sales or yet another earnings miss. But it’s well worth remembering. Especially in the current market, where investors are adamant that Domino’s Pizza Enterprises is not a fast food company but a tech company in disguise and therefore totally deserving of a price-to-earnings ratio of 80 times.  Good luck with that.’

‘So in the spirit of telling both sides of the story, we’ve gathered the bull and bear cases for some of the ASX’s most well-known darlings and deadbeats. The only conclusion we can draw is that they both can’t be right.

Read more at AFR.com (might need AFR login access, or try: AFR.com/trial)

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About robertbrain

Brainy's Share Market Toolbox. Read the honest truth about the sharemarket. Develop or fine tune your investing/trading strategies using share price charts (technical analysis), or learn about the investment strategies of others. Melbourne (Australia) based - supporting share market investors and traders to build wealth through smarter investing using my Share Market Toolbox arsenal of weapons to tackle the market.

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