profit taking?, page-5

davej6.... read my spiel re'why do share prices fall after rising?' Difficult to accept i know..... but current mkt is dominated by traders. Advances in software mean this is not a tempory phenomenom..... but one that investors will have to live with. IMO the best way for investors to make gains is to select companies with the best fundamentals AND in growth sectors ie. gold, fibre optics, infrastructure. Try to predict how many contracts a firm is likely to win and calculate the effect onto the bottom line. Then (and i have found this extremely useful) make a guesstimate re SP in 6 and 12 mths time. Then buy share if the price is right(re fundamentals). I mainly choose stks which also pay exc. divs as this compensates for swings in SP. If your hunch is right and company profits eventuate.... the SP will gain even if general mkt is lousy. The collapse in 2008 has provided major buying opportunities for investors with 12-24mth outlook.

Re MAH: i expect another contract within next 3 months. I also expect LEI/MAH to get a reasonable share of civil work when infrastructure fund winners are announced. Hence, i am holding my MAH at 56c as i feel SP can rise steadily when new anns filter through. Still hoping for 4c div in August.