Why spec. shares will always be popular

  1. 5,447 Posts.
    Speca like lotto tickets will always be bought and there will be spectacular winners in both.For example

    Ausdrill ASL and Striker Resources SKR over 12 months,1st July 2001 to June 2002.

    Start with $2000 reinvesting all funds

    1st July Buy 29000 ASL @ $0.07
    16/8 Sell 29000 ASL @ $0.11
    4/10 Buy ASL @ $0.07
    15/11 Sell ASL @ $0.11
    27/12 Buy SKR @ $0.05
    24/1 Sell SKR @ $0.12
    7/3 Buy ASL @ $0.08
    23/5 Sell ASL @ $0.37

    Finish with $55000

    Although the figures are correct,it is hypothetical.No doubt some traders did this mix of trades,but it shows what results can be achieved in the low priced stocks.This is what keeps people coming back to the market and buying these stocks. There are probably better combinations,and I would like to see some.There is of course a limit to the pyramiding by the number of stocks available and liquidity.
    As for the banks or other blue chips,they are subject to fashion also;look at MIM which used to be regarded as a blue chip.Banks will be less cyclical as they have fingers in many pies,however their Achilles heel is interest rates.
    As Hot Coppers' origins are in the low priced stocks it is a waste of bandwidth for brokers on this site to keep promoting the top 20......we all know what they are.
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