Wednesday, November 01, 2006

Market update (value)

I have been trawling the market for the last few days looking for fundmanetally sound companies at a good price. Unfortunately I can not find any what so ever.

Looking back at some of our deals I see CKL, TFC, MCW, MMA, MOC, ASU are all are strong to name but a few.

Of those I have looked at there are still 2 which are around the suggested purchase prices. These are FUN and BRZ. BRZ could go anywhere and it is probably wise to wait and see what is happening with it. FUN is still a great long term stock and is worthwhile as the fundamental reasons to own it still exist (lots of people having babies).

Anyway to me the market looks severly overpriced and there is not much value to be found. Be careful as the interest rate rise (which should come) could deflate the market a bit. What would be worse is if the interest rate rise does not come ... The market expects a rise and if it doesn't come it would be mjor bad news as it means the economy is starting to slow too rapidly.

Lets wait and see ...

Good Luck investing.

No comments: