Morning Report Friday 4 July 2014
Two important statistics / seasonal trends will be covered in tomorrow’s “Hickman Report” that confirm why I am bullish 6 months and 2-3 years out. Hence I am glad to have purchased two stocks over the last week, with one more looming, as the anticipated pullback to aggressively buy is currently not materialising.
Some lurking gems in the Media sector and paying great dividends!
The media sector has been hammered since 2007/8 with +90% falls in the sector - the standard devaluation. I am a large advocate of not trying to pick bottoms, but alternatively as we saw from the retail sector in 2012, massive sell offs do usually go too far – see chart 5. In recent weeks I have been looking at Fairfax (FXJ), however I now believe a potentially better investment vehicle has materialised in the sector at current levels. Active stocks in a battered sector generally remodel / refocus their business and this can unlock value after sell offs of the magnitude witnessed in the media sector.
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