I guess you are right in a certain aspect. I won't call it gambling though. I can call it a management of risk. It took me quite some time to get to this mind set.In time of volatility, it is difficult to assess the intrinsic value of a share.If we are backward looking, we rely on past accounting records. As an entrepreneur, we evaluate the future prospect.I was in the rag trade before an will not underestimate the value of iconic brand. The fact that a large amount of money is paid for them underlies their value. On the other hand if a company is in trouble, they are not worth much. In time of uncertainty, I have to rely on charts to guide me on their direction.So I ride the trend till it bends.If I stick strictly on last year record, I won't be on PBG. I went back further and analysed their dividends yield and their return on capital. As an importer, the ozzie $ plays a very umportant part. Don't underestimate volume trade in such an enviroment, it means many more $ to the company.They have got rid of all their underperforming assets now, so it is time for them to look forward.If the ozzie $ weakens, BBG is a better bet. Have a nice week end.
malay
PBG Price at posting:
87.0¢ Sentiment: ST Buy Disclosure: Held
