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Brady PLCBRY:LSE
Tipped as a rising star, put in my maanged portfolio at 95p, buy signals at 95p everywhere and still a buy but plummeting like no other - this was / is a much admired company that seems to have lost all credibility but my unexperienced eye cannot see the reason for the drop.
Can anyone teach me a lesson please? (I was going to buy last week but didnt as I couldnt get them inside my ISA) Im glad I didnt.
Tipped as a rising star, put in my maanged portfolio at 95p, buy signals at 95p everywhere and still a buy but plummeting like no other - this was / is a much admired company that seems to have lost all credibility but my unexperienced eye cannot see the reason for the drop.
Can anyone teach me a lesson please? (I was going to buy last week but didnt as I couldnt get them inside my ISA) Im glad I didnt.
I don't know anything specific to this company. You mention it was tipped as a rising star, should I take it that means it was "tipped" in publications such as the Investor's Chronicle?
As a general note, it's not unusual for small companies that appear in such publications to have an impressive rally in advance of the articles, which can be sustained while the publicity continues. Eventually the excitement and publicity disappears and their share price fades.
Ask yourself the opposite question- was the rise in their share price fair? In the time that they were rising, did they earn enough money/grow enough to justify the increase in their market cap?
Always be wary of small caps. Very few ever come to anything.
As a general note, it's not unusual for small companies that appear in such publications to have an impressive rally in advance of the articles, which can be sustained while the publicity continues. Eventually the excitement and publicity disappears and their share price fades.
Ask yourself the opposite question- was the rise in their share price fair? In the time that they were rising, did they earn enough money/grow enough to justify the increase in their market cap?
Always be wary of small caps. Very few ever come to anything.
IC said:
Brady plc is engaged in the provision of risk management and settlement solutions to the metals and commodities industries, through the delivery of customer focused software and services. The Company provides the trading and risk management software for global commodity markets. On a single platform, the Company provides an integrated solution supporting commodities trading operations. It operates in the metals, energy and soft commodities markets, with a particular in delivering software solutions and associated services for physical and derivative trading, risk management, finance and logistics. During the year ended December 31, 2011, the Company signed 14 license contracts; completed 25 installations or upgrades in Europe, the Americas and Asia. In 2011, it launched Brady Order Management System (OMS). On March 9, 2012, the Company acquired Navita AS. On February 10, 2012, the Company acquired syseca AG.
If you are happy understanding that little lot you know what the risks are, if you don't keep well away!I guessed it may be pulled down as a commodity company as they are all on the slide but its anything but, Brady has been a strong buy for a while now and has been tipped by quite a few analysts but its performing really badly - I note they are issuing themselves stock options and selling them as well - a great sign of commitment.
On a general note.
If you consider buying a company, everything looks kosher and you are happy with the price.....then it drops......it's the same company, it's just cheaper.
If your original homework on the share was good...surely this makes it a buy!
(assuming it was pulled down by the market and not the CFO getting 5 years
)Isn't it just linked to commodity prices? The higher commodity prices then the more speculative trading volume and thus the higher amount or risk management services they are likely to provide.
Overlay a share price chart with a metals and commodity basket price to see what the share price is really showing. I wouldn't be surprised to see a broad inverse relationship.
Overlay a share price chart with a metals and commodity basket price to see what the share price is really showing. I wouldn't be surprised to see a broad inverse relationship.
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