EDITOR’S NOTE: The market knows best — or does it?
There is nothing more disconcerting for us ordinary investors than doing loads of homework to support an optimistic conclusion on a company’s prospects
The market is never wrong ... well, very rarely wrong. There is nothing more disconcerting for us ordinary investors than doing loads of homework to support an optimistic conclusion on a company’s prospects, and then watching its share price dribbling down persistently or stubbornly stalling. From correspondence I receive from readers, let me say that I have some sympathy for shareholders in counters such as Blue Label Telecoms, Alviva (covered in this issue), Metrofile, Santova, Premier Fishing & Brands, Brimstone, Stadio, Kaap Agri and Hulamin (to name a few). As to why these counters lack traction in their share prices, the disarming answer is usually that the market is never wrong. Indeed, the market always seemed to know better when executives spun optimistic stories about profit recoveries and value unlocking. Readers will probably remember that, at times, many punters strongly believed the market had misunderstood or misread the attributes and inherent value proposition in bo...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.