just starting . what to buy, page-5

When selecting a stock, if a stock has already bolted away, ie gone 100% in the last few days, don't get sucked in. More often than not, the stock will retrace somewhat. See what news made it take off, and see if its of astronomic levels, ie, justifies the new MC. remember, it has to still be attractive at the higher prices, even say twice it's current price for there to be growth. There are plenty of companies on the ASX, so don't panic, there are always more opportunites. Emotional decisions are the worst.

Stocks that have good resources, and have been tracking sideways are good entry points IMO (In my Opinion).

Also, every couple of months, the Stock world has a correction and there is a good retrace for a short period of top stocks. (people think the sky is falling, but hey, the sun is still shining at the moment) We have already had a good run, i'm not sure when the next pull back will be.

But, IRON ore stocks are doing well. The price of iron ore will rise soon, and it will give producers and near term producers a lift, and the whole sector in general.

Look for stocks that have a realistic chance of getting to production, have access to ports, rail etc.

My tips are MAK, AGO, BCI, and if you want an oil play with Blue sky, RRS. Uranium tips, BMN, EXT, DYL.


I suggest be patient and diversify. And don't get upset if things turn down 20%, you can never pick the bottom entry point.

If you pick based on the fundemental view that the company has such good earnings prospects, the PE will drive the SP %100 in the next year, what does a %20 dip matter?

Good luck.