LAST YEARS DOGS ARE THIS YEARS WINNERS THEORY ...It is already working for me ... a depressed lithium company, PMET, with a 2 year high of $17.80 I started buying in the past 2 months at $2.35/share plus ... a dog but VW just made a treasury purchase of 10% of PMET shares at $4.42/share with NO WARRANT (kudos to management so no further dilution). THIS WAS AN IRRESITABLE DEAL WHEN I CAME ACROSS THIS COMPANY. A 28 year hard rock lithium mine with a payback of 3.8 years, check the investor presentation on the corporate website. TOO GOOD TO BE TRUE BUT A DOG THAT SHED ITS COAT EARLY.
Now we have BCE. I purchased too early. If I had the money, I would put it into this stock. YES, INDEED BCE IS IRRESITABLE TO A NEW INVESTOR AND YES, PREVIOUS INVESTORS HAVE TO EAT CROW.
The problem with BCE is really two fold in simplistic terms.
- Management are clowns. Obviously they have not adhered to market wisdom, under promise over deliver. They lied on paying down the debt, purchased I believe an overpriced foreign company, sold their prize asset to pay PLUS ASSUMED AN ADDITIONAL 2 BILLION IN DEBT. Management is a wild card ... will someone please be the fall guy here so we can move on. A PENALTY IS REQUIRED.
- The wireless communication business is sound and a necessity in life and actually, just like lithium, long term a good proposition. Now it is not management but rather the clowns in the government and yes, they are also a wild card. FOCUSSED NOT ON BUSINESS BUT REDISTRIBUTION. The sooner we get a new government, then there should be some normality here.
BCE has fallen too far, too fast, and simplistically it will get an oversized shot of adrenaline in the new year, after tax loss selling. Yup, ETF's etc dont want to show BCE in their portfolio as at Dec 31 as the assumption is that they got rid of this dog early in the year at a much better price. Yup, losses simply netted with gains, and gone ....
In order to invest, the simple always works and always back to basics!
Holding BCE and eating the temporary loss, but very comfortable in the future. Yup, last years dogs will be next years winners!