Forum Topics Mr Market’s Bargain Bin
Rick
Added 2 months ago

I don’t know what others do but one of my favourite ways to go shopping on the market is to look in the bargain bin each day. I have a watchlist on ComSec called “Add”. This really means “add on opportunity” This list includes all the businesses Ive spent hours screening and would be happy to buy and hold in my portfolio at the right price. I also calculate valuations for all these business and revise these regularly. When I check the market I go straight to the “Add” watchlist and sort the list by percentage gain/loss and see what is “on sale” that day (the biggest losses for the day). Then I try to get a good understanding why it is on sale. Sometimes there is a good reason why the shares are on sale eg. ARB yesterday. Other times there appears to be no reason for the “one day sale” and it looks like an opportunity eg. ABV down 7% yesterday. This is more common with low liquidity stocks. Then it’s time to recheck the valuation, check for reasons why it’s on sale (eg announcements, news, rumours, liquidity, broker updates, overall market, poor sentiment chart, shorting etc) and if the coast is clear and it appears the discount is genuine, it might be an opportunity to buy? That’s my contrarian buying process. How do others go about their shopping?

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Jimmy
Added 2 months ago

@Rick I do exactly the same once I've had a look at my current holdings for previous day's after market releases and any pre-open releases.

I've been able to plug a number of holes in my p/f this way by picking up the likes of: XRO, ZIP, TLX, SPK, RPL, RDY, WTC, PME, IPH, KLS, CAT, IDX and started buying PME this morning.... amongst others....I guess time will tell if it's been a successful strategy or not...well see....

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Clio
Added 2 months ago

@Rick - much the same as you. I've started keeping a list of all the stocks I own that I would like to add to, or would like to get initial positions in (having done the homework) and keep it updated with an estimated fair price (Strawman's patented method which is the only one that makes ready sense to me) based on the most recent reported info.

I'm forcing myself to adhere to that and not get tempted when I see something I've always heard is a sound company (e.g. TNE) having a SP moment. It's still not low enough to tempt me.

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