Note: it's interesting to see two of last years top performers in the FTSE 350 - Ocado and Thomas Cook attempting continuation moves over the last two days.
isatrader
Fate does not always let you fix the tuition fee. She delivers the educational wallop and presents her own bill - Reminiscences of a Stock Operator.
Note: it's interesting to see two of last years top performers in the FTSE 350 - Ocado and Thomas Cook attempting continuation moves over the last two days.
isatrader
Fate does not always let you fix the tuition fee. She delivers the educational wallop and presents her own bill - Reminiscences of a Stock Operator.
In the book he mentions how fundamentals don't come into it when one 'reads the tape' and that companies with lousy fundamentals can be great technical stocks.
OCADO (OCDO.L) is one such example. It's handed out five years of audited results and every single one has made a loss. The EPS is utterly dire and plummeted to new depths this year and basically in fundamental terms it's an utter and total basketcase. But it's a different story according to the book because one could have got in at arond 90s in the spring of last year, perhaps got in again at 150 in the summer of last year and now, six months later, with the company doing dreadfully one could be selling the shares at 500 - over five times the price paid this time last year.
Utterly amazing and, yes, I will be the first to admit that I have had two very unsuccessful attempts at laying this company by going short at around 360.
Anyway, Ocado just goes to show that one doesn't need the fundamentals to follow the tape.
Pam: "I wonder what my name means in Welsh"
Nessa: "Why?"
In the book he mentions how fundamentals don't come into it when one 'reads the tape' and that companies with lousy fundamentals can be great technical stocks.
OCADO (OCDO.L) is one such example. It's handed out five years of audited results and every single one has made a loss. The EPS is utterly dire and plummeted to new depths this year and basically in fundamental terms it's an utter and total basketcase. But it's a different story according to the book because one could have got in at arond 90s in the spring of last year, perhaps got in again at 150 in the summer of last year and now, six months later, with the company doing dreadfully one could be selling the shares at 500 - over five times the price paid this time last year.
Utterly amazing and, yes, I will be the first to admit that I have had two very unsuccessful attempts at laying this company by going short at around 360.
Anyway, Ocado just goes to show that one doesn't need the fundamentals to follow the tape.
Pam: "I wonder what my name means in Welsh"
Nessa: "Why?"
(2014-01-09, 07:54 PM)MalcolmSm1th Wrote: In the book he mentions how fundamentals don't come into it when one 'reads the tape' and that companies with lousy fundamentals can be great technical stocks.
OCADO (OCDO.L) is one such example. It's handed out five years of audited results and every single one has made a loss. The EPS is utterly dire and plummeted to new depths this year and basically in fundamental terms it's an utter and total basketcase. But it's a different story according to the book because one could have got in at around 90s in the spring of last year, perhaps got in again at 150 in the summer of last year and now, six months later, with the company doing dreadfully one could be selling the shares at 500 - over five times the price paid this time last year.
Utterly amazing and, yes, I will be the first to admit that I have had two very unsuccessful attempts at laying this company by going short at around 360.
Anyway, Ocado just goes to show that one doesn't need the fundamentals to follow the tape.
I think you're maybe being a bit harsh on it in saying that it's a utter and total basketcase in fundamental terms as it's continuously grown it's Revenue for the last five years by over 100% from 321.31m in 2008 to 678.60m in Dec 2012, and it's pre tax profit has improved each year and was only just under breakeven at -0.60m in Dec 2012, up from -33.30m in Nov 2008, and so imo this growth towards profitability has been a big driver of it's Stage 2 advance over the last year or so, as people have probably bought into the stock in anticipation of it becoming profitable in 2013/14 and continuing it's strong growth. But we'll get the next look as to whether they are going to achieve this with their 2013 results on 04 Feb 2014.
isatrader
Fate does not always let you fix the tuition fee. She delivers the educational wallop and presents her own bill - Reminiscences of a Stock Operator.
(2014-01-09, 07:54 PM)MalcolmSm1th Wrote: In the book he mentions how fundamentals don't come into it when one 'reads the tape' and that companies with lousy fundamentals can be great technical stocks.
OCADO (OCDO.L) is one such example. It's handed out five years of audited results and every single one has made a loss. The EPS is utterly dire and plummeted to new depths this year and basically in fundamental terms it's an utter and total basketcase. But it's a different story according to the book because one could have got in at around 90s in the spring of last year, perhaps got in again at 150 in the summer of last year and now, six months later, with the company doing dreadfully one could be selling the shares at 500 - over five times the price paid this time last year.
Utterly amazing and, yes, I will be the first to admit that I have had two very unsuccessful attempts at laying this company by going short at around 360.
Anyway, Ocado just goes to show that one doesn't need the fundamentals to follow the tape.
I think you're maybe being a bit harsh on it in saying that it's a utter and total basketcase in fundamental terms as it's continuously grown it's Revenue for the last five years by over 100% from 321.31m in 2008 to 678.60m in Dec 2012, and it's pre tax profit has improved each year and was only just under breakeven at -0.60m in Dec 2012, up from -33.30m in Nov 2008, and so imo this growth towards profitability has been a big driver of it's Stage 2 advance over the last year or so, as people have probably bought into the stock in anticipation of it becoming profitable in 2013/14 and continuing it's strong growth. But we'll get the next look as to whether they are going to achieve this with their 2013 results on 04 Feb 2014.
isatrader
Fate does not always let you fix the tuition fee. She delivers the educational wallop and presents her own bill - Reminiscences of a Stock Operator.
