- Jul 24, 2012
I saw some mug on Motley Fool post an article claiming he was buying FTSE 100 stock today at a "bargain price", why the fuck would you do that when you can obviously buy it for less tomorrow and the next day?I unashamedly sold out of everything yesterday, placing my order before markets even opened. I would consider myself very comfortable with volatility but the latest covid-19 news does seem to indicate we’ll be on a downtrend for some time. I’ll probably start drip-feeding money into some mutual funds once we’ve got some more clarity on how the next few months might look.
In terms of individual stocks, I’ve been keeping an eye on Cairn Energy, Oil exploration company trading at a 60% discount compared to a month ago. The double whammy of the coronavirus and oil price collapse mean it’s now trading at a P/E of 4. Still fairly speculative given the nature of its business but has a lot of upside potential.
Cinema chains are interesting with a well established and sound business model. Cineworld is trading at an 88% discount to one month prior, which seems to be entirely driven by Covid 19. I’m still expecting cinemas to be closed by the government in the near future, which should send the price significantly lower, but even now it’s a well established business, in a century old industry that isn’t going anywhere, trading at a P/E of 2. Madness.
All this "topping up" bullshit they like to hit out with, like they have this bottomless pit of cash sitting around and aren't up to their tits in falling stock portfolios.