McInnes chair CCX, page-44

Can you articulate your definition of ‘speculative’ in the context of an investment in ordinary securities listed on a public market;

- is a stock like BHP ever considered speculative eg. when trading on a higher than normal PE?
- is a stock like a junior miner that does not have any history of profitability anything other than speculative?
- what about an ASX 100 company that is projected to make losses for a few years into the future ie current trading and near term trading results?
- is it based on size of operations?
- is it based on balance sheet gearing?
- is it industry based?
- is it based on an entity’s stage of commercial evolution?
- is it based merely on an investor’s own speculation as to where the stock price will head in the future?

Give us the technical definition and criteria.