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What to do with some speccy’s?

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What to do with some speccy’s?

Hello, Newly subscribed member here. I noticed that you run with questions on a certain day. A few years ago I bought a few speccy stocks which I thought would do well, unfortunately, some didn't do as well as I had hoped. Luckily; they were very small positions which I spread across quite a few stocks. I still feel that they should be doing better than they have, but would like your opinion, I have considered adding to them to average the cost down. EPN: This is by none, the worst performing stock I have ever purchased, I bought at 0.54. It seems very oversold to me. BVS and BPT have also been poor performers for me. I purchased just before covid hit and didn't sell. My attitude was that everything would blow over in a couple of weeks. How I was wrong with that! - Regards Simon

Answer

Hi Simon,

EPN is a $29m healthcare business putting it very much in the “speccy” end of town, as such we often fall back on our technical analysis to evaluate the risk / reward unless of course it’s a stock specifically on our radar for the MM Emerging Companies Portfolio. Our technical  view on the 3 stocks you’ve mentioned are as follows:

Epsilon Healthcare (EPN) 15c – is in a clear downtrend and we see no technical reason to buy at this point in time.

Bravura (BVS) $3.25 – we think the risk reward for the wealth management software business is good. We like it here as a recovery play. It’s cheap and will do better as the UK gets back to normal.

Beach Petroleum (BPT) $1.26 – we now have no interest in BPT preferring STO in the sector around 6-8% lower. We’ve come to believe that STO has a much better asset base.

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Epsilon Healthcare Ltd (EPN)
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