Investing is not easy, thats pretty clear. You looked at all the right things. This was a profit warning , one that really came out of the blue! I always factor a 20-30% profit drop when valuing shares which usually works well for me but this drop was way more, no way i could have seen that coming. Its important to stick to a method that works, its about minimising losers, one can never have all winners.Its all about odds. A few pointers would be 1. Have a target when to sell 2. Stop loss ( not always full proof as we saw today) 3. Just as stocks can shoot to the upside , they can shoot to the downside.Keep an eye out for a big margin. Zicom is a good company IMO and keep in mind it is now well below book value . If this is a one off , there may be a good opportunity in the near future. MAH, FLT, few others , all had big profit downgrades in the past , all were able to give gains in excess of 100% . Keep a target price in mind that you feel offers a big margin of safety. 4. Buy stocks in an uptrend ( for me its long term 5 year). Zicom is now below 200day ma. 5. Its all about expectations in the stock market and buy when sentiment is down . hope this helps
ZGL Price at posting:
21.0¢ Sentiment: LT Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)