Four Buys and a Grand Gamble
4 Buys:
In my Table of Doublers
above, you will have found 4 stocks recommended by Reuters (in Feb 2006) as
"Buy."
This indicates that in the medium term you
should get a good return out of these shares. But, before you buy,
consider if the present moment is the optimum time to buy. Even though
these shares will most probably show a continuous upward trend over the medium term,
in the short term they may be subject to downswings as well as upswings. In other
words, you may sometimes get a better price by waiting until next week, i.e., if
a downswing is anticipated. On the other hand, if the present moment is
optimum, you may lose a good opportunity of gain by waiting until next
week! (No wonder the analysts change their recommendations from week to
week).
The 4 stocks in question are shown in the
following chart (from Reuters, 20th Feb 2006).
All of these shares have stalled or fallen
during the first half of February. A rise in value can, therefore, be
anticipated in the immediate future, and this (20th Feb 2006) seems like a very
good time to buy.
Grand Gamble:
Gran Tierra, (in my Doublers
Table)is too young to have accumulated a Reuters' recommendation! This
is an oil
and gas exploration and production company set up only a few months ago
(November 2005). Its officer board is apparently comprised of experienced oil people
who left other companies to launch this one, with the prospect of participating,
among other ventures, in a very promising oil exploration in Argentina. Drilling commenced as soon as
the company was set up, and the immediate results were outstanding, with oil
already flowing by January 2006. On 16th February 2006, the company
announced that the production had stabilised, giving a consistent 340 barrels a
day, with low watercut, which Gran Tierra shares with its partners. And this is
just the very beginning.
Sounds like a grand gamble at this point in time!
Price chart from Reuters:
|
