award night, page-29

Neg could hold shares in Blue Chips as well as this Spec and THEY PAY DIVIDENDS AND APPRECIATE IN VALUE

Good theory. I happen to know a number of people who have lost big dollars on investing in blue chip. Happen to remember one company Centro go from dollars to cents in just months. Most investors have lost big dollars investing in Telstra. I think there is this false sense of security with some that blue chip provides no risk. Personally I have had far more success multiplying my money in spec stocks then I ever have or ever will in blue chip.

But you are by the letter of the law correct. Over the space of the last year, IF you are using share price as the sole gauge of progress, in general blue chips have performed better than POH. But that was sort of my point, I don't believe you should value a company's progress, especially not a speculative one, on it's share price.

Because,surely there is not a single absolute investor in a 14c Spec without investing in a real profit producing Co??

Agree POH is speculative, have never shied away from that, but are you suggesting that no-one should invest in a speculative unless they have real profit producing companies in their portfolio as well? Well I'm one. I only invest in speculatives on the stock market because I believe if you are going to risk money in the share market then why risk it on those with puny returns? I want maximum reward for risk. I believe in my ability to seek companies that I think can multiply my money. I've managed 3 in my life so far. It would have taken 100 years to get that return from a blue chip investing the same money. Regardless I prefer to invest long-term in property, less to worry about, I know I'm not going to wake up tomorrow to a market crash or my company going broke. I know that tomorrow, regardless of the economic situation people still need accommodation and businesses office space to rent.

Of course this is my preference. Everyone has their own strategies but remember I was purely commenting on the statement that POH was the most disappointing stock on the ASX in 2012. Just sounds a bit drastic to me.