Volatile low images

 

Some stocks are temporarily ignored, ill-loved, even hated. 

These outcasts have tiny, but volatile images, specially in depressed or even
temperate periods.
Here is an indicative table.

 

Depressive market

(mkt average img. = 0,6)

0,2 to 0,4

Neutral market

(mkt average img. = 1)

0,3 (0,5) 0,7

Buoyant market

(mkt average img. = 1,7)

0,7 to 1,2

pi-egg.gif Very cyclical or erratic firms are roller coasters.

If a firm's results are zigzagging, its stock's image tends to be low and
volatile.
Its level exaggerates the actual uncertainties, at least in atrabilious
market periods.

pi-egg.gif Special situations (turnaround firms, take-over targets, lottery

     tickets) are toads that may become princes if the fairies feel like it.

This applies to firms not very successful at the moment, but that:

pi-egg.gif (104 octets) The most worthy of interest are the emerging firms.

Having shown some first successes, these little robins are aplenty with
nice prospects ...if economic vicissitudes don't swallow them.

Those firms, at the same time:

pi-egg.gif (104 octets) Beware of decoys / false emerging stocks, the so-called stocks with a
    future
or pre-emerging stocks.

Some started with some sales, even profits, but not necessarily recurrent.

Others have only projects. Comes to mind such- and- such big canal or
tunnel, or new sector: biotechnology, new media….

OK to bet on innovation. But not to pay a lofty image to buy a tiny EEV. Such
stocks are often launched on the market at stratospheric prices (see above)
in euphoric periods when investors flock around anything with a new and
flashy look.

Imagine the fall into Hell when the market sentiment turns around!

pi-separ.gif

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Image families:  [low stable] [low volatile] [neutral stable]  [neutral volatile] [high]

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