n Personal Finance Newsletter - These shares are priced to go bust. Any takers? : investment insights
|Article Title||These shares are priced to go bust. Any takers? : investment insights|
|© Publisher:||Moneyweb (Pty) Ltd|
|Journal||Personal Finance Newsletter|
|Publication Date||Apr 2009|
|Pages||8 - 9|
For investors with nerves of steel and some spare cash, Moneyweb's editor-in-chief Alec Hogg offers the "going bust" portfolio, a set of shares whose prices suggest that they're about to implode. A share price is, among other things, a signal that tells you what the market thinks of a particular company. When a company trades above its intrinsic value, the market thinks that the company is well-managed and positioned to outperform. When a company trades at a big discount to its intrinsic value, well, the market thinks the whole house of cards is about to tumble down.
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