Banking Crisis=Opportunity

A Picture Share!

Stick with the fundamentals

There’s an awful lot of uncertainty in the Global financial markets at the moment particularly European markets.

With the recent Irish bail out being seen as a precursor to similar action that will HAVE to be taken yet again to under-pin Spain,Italy and Portugal’s financial markets. Make no mistake the Irish bail-out, which you will all remember was vehemently denied by the Irish Government, was given the green light weeks ago. Secret negotiations had been ongoing for quite some time with the IMF/European Union/Britain. These things always run a certain way and you can bet your last drop of blood that the Spanish,Portuguese and Italian governments are already mired in talks to secure funding when the markets move against them. Lloyds are at present on a declined curve due to their exposure vis-a-vis the Irish banks they will almost certainly go sub 60p.

However this presents the canny investor with a whole host of investment opportunities. There are literally hundreds of companies trading below their true value. Take HRG for instance a corporate travel company that sunk to 4p from over 100p 12 months ago. I remember speaking to one of their executives who had been patched through to us here from Dubai and at the time he assured me that he hadn’t a clue why their sp had fallen. There was nothing wrong with the company it was just market panic attacking different sectors and creating demons. Time has proved him right they are trading at 36p and have just released a very good set of figures. I could have bought them at 4p but alas I never!

What that example learnt me was that even when the market is gripped by fear the astute stick to the fundamentals! A good company is still a good company in a down-turn!

There is opportunity here and it is knocking on your door. Stick to the fundamentals as a base point for your research “cash rich, good product,customer retention, chance of success” etc all these basic tenets hold true.  Never invest in a company unless you have dissected their fundamentals and believe in the investment.

Hola!

Daniel

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  1. twitterfollower says:

    Hey Dan well done on the haike news. Man they are up nearly 40% since you blogged on them last week an they topped out @51p a stonking 57% increase. You must be a millionaire Daniel? How come you always get it right? come on mate whats the secret you must have fantastic contacts and a nose for a good stockive been following you on twitter every single company you write about go the way you tell us nighthawkdown haikeup encoreup nauticalup gkpup vernalisdown ntogdown solomonup trpup oilexup
    speaking of which i read your oilex comments when they were 12p im kicking myself now! Got matra @1.61p only 50000 but am showing a healthy gain cheers for that. should i sell or buy more i know theyve had probs and will as you say always have technical probs some where along there way.
    Help or advice much appreciated.

    Twiter fan of Dan

  2. Chillaxed says:

    Hi Dan

    you heard anything about the soap opera that is DES, I am not in but wondering if this is a tree shake or they are screwed, any thoughts?

  3. Mike says:

    Dan

    Don’t know if you read the last message or not but would like a comment on Empyrean Energy (EME) if possible. They have had lots of good news as of late and yet we still await breakout of the shareprice. Way undervalued I think ! Can you see if you can hear anything from your end please.

    Regards
    Mike

  4. Bob says:

    Dan rumours of more delays with mta ? R you aware of news still to Break on this one thx