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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Bombed out shares (Lords, Sanderson, S4 Capital)

February 2025

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

Having written about shares for nearly a quarter of a century, I’ve experienced two stand-out moments  - the “Baghdad Bounce in March 2003 and post GFC bank bail-out rally in 2009-10 - when serious money was made by investing in “bombed out” shares trading at a fraction of their former highs. While trading momentum is scarce, these moments can be lucrative as investors are betting lower interest rates will prime the pump for an improvement in demand (markets always look 12-18 months ahead), while the uber low valuations act as a Benjamin Graham style margin of safety. I’ve selected three such early stage ideas below.   Lords Group (LORD), 35.5p While there is debate over how far and how fast interest ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

All material on this website is protected by copyright. You may use Information retrieved from the www.scsw.co.uk website for your own personal non-commercial use which means that you may not sell or copy this information to any third party without prior written consent. ISSN 1358-183X

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