MICHEL PIREU: X does not mark the spot for solid alternative investments
Although many of AltX’s stocks may look unfavourable, there could be exceptions
The willingness to do things differently may be an essential ingredient for success in the stock market. So while most investors are looking for something to do, an alternate approach may be to look for sufficient reason not to do anything. Besides, as hedge fund manager David Tepper likes to say, having a "too hard pile" is such a huge advantage in life. Here’s how it can be applied to the 42 companies listed on AltX, based on last week’s closing prices and the last set of full-year results. There’s no point looking at those businesses that have been suspended. Nor do we want to look at those businesses showing a loss, particularly for some time, as we’d have to pin our hopes on a turnaround. Most turnarounds don’t turn. Given that something like two-thirds of businesses that temporarily become unprofitable fail to regain their high-water mark, we would rather not look at any company reporting negative earnings. That includes Advanced Health, African Dawn Capital, Alphamin Resource...
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