Forum Archive Index - May 2001

["David Ling" <seechoke@hotmail.com>]

Some very pertinent points have been made in recent days regarding Frucor. 
Unfortunately, the message appears to have got lost in the noise.

I don't think it's not a question of chatters blaming anybody (especially 
Nick) for Frucor's disastrous showing (share price down 30% since the second 
downgrade)BUT there are valuable lessons to be learnt in any situation and 
Frucor is an excellent example for even experienced investors to learn from.

Three major lessons are :

1. Don't buy into a stock which has just failed to meet prospectus forecast. 
The forecast provides an important indication of how and why management 
expect to achieve certain things to meet expectations. By inference, the 
ability to meet forecast must mean that something is seriously wrong! All 
the PR and bs spin in the world will not change that fact. Refer my posting 
of 27 February re Frucor - Not a good sign.

2. Never fall in love with a stock. Investing is all about meticulous 
analysis and making risk reward judgements. Infatuation as a teenager is 
fine and a natural (maybe necessary)part of growing up but believe you me, 
infatuation with a stock will cost you plenty - Always! Many IT/online/day 
traders found that out dearly last year.

3. The opposing thoughts and views on Frucor at the end of the day make the 
market in Frucor shares and some win, some lose - you have to try and 
improve your odds of being in the winning side.
_________________________________________________________________________
Get Your Private, Free E-mail from MSN Hotmail at http://www.hotmail.com.


----------------------------------------------------------------------------
http://www.sharechat.co.nz/          New Zealand's home for market investors
----------------------------------------------------------------------------
To remove yourself from this list, please use the form at
http://www.sharechat.co.nz/forum.shtml.