I took this weekend to draw up a list of stocks that would buy should there be a massive drawdown in the market. They are what I think are fundamentally sound and could be massively mispriced in a bear market.
I will not talk too much about them but would like to hear your comments as to whether I am missing out on other gems, how much these stocks would likely go down by.
For each stock I highlighted their respective drawdown during the 2007 Dec to 2009 Jun recession. If you think the so called blue chips will stand the test of time, the answer is yes and no. All of then suffer huge drawdown from 40% to 75% but they also bounce back strongly. The question is will you get spooked.
ARA
Cerebos
First REIT
Hsu Fu Chi
SembCorp Industries
Singtel
Starhub
Vicom
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gregg
Monday 20th of June 2011
Hi Drizzt,
It was back to 2.70 today.. :)
Drizzt
Wednesday 22nd of June 2011
i grab 3 lots of starhub yesterday.
Gregg
Saturday 18th of June 2011
Hi Drizzt,
Yesterday starhub last minute sold down heavily at $2.66...good entry price to accummulate as it it already break the 2.70 support...... :)
Drizzt
Saturday 18th of June 2011
surprised by the drawdown really but we could see that it snaps back. does this interest you guys?
Temperament
Thursday 16th of June 2011
Hi Drizzt, No lah, not timing but time in the market and time out of the market. i appreciate your accurate "diagnosis" of what the particular share or Company is about. Shalom.
Drizzt
Friday 17th of June 2011
hi Temperament, there are accurate ones there are inaccurate ones as well. I get usrs like you to probe me and tell me otherwise.
Isaac
Wednesday 15th of June 2011
How about Singapore Technologies Engineering? Stable business, low beta STI component.
Cheers
Drizzt
Thursday 16th of June 2011
Hi Isaac, I have my reservations against this stock. Probably because i own it as a company stock. Its not as low volatile as you think.
ST have become a company like Keppel and depends on contract wins and back orders. their stock price out performance is tied to how the market performs as well.
gregg
Tuesday 14th of June 2011
hi Dritzz,
Really miss the chance of accumulate Starhub during the great recession... It only catch my attention when they lost the EPL broadcasting rights and i got my first lot of starhub @1.98..
Drizzt
Thursday 16th of June 2011
hi gregg, looking to get in at 1.80 to 2.30 range for starhub myself as well.