How to find winners from badly performed stocks on NZX 50 in 2017

[hardt]

I think GXH has been beaten to a pulp. Sentiment has gone against it but I don't see that business falling off the map at all. In fact, they continue to grow year on year so if they do that this year, I wouldn't expect the share price to stay at current levels.

With the success of chemist warehouse in ST Lukes, and a new one opening right next door to Unichem Max in Botany with plans to open many more in Auckland it comes as little surprise.

Seeing as 80%+ of their operating profit and just about all their growth comes from Pharmacy... it is understandable why this has slumped.

[Food4Thought]

I think GXH has been beaten to a pulp. Sentiment has gone against it but I don't see that business falling off the map at all.
In fact, they continue to grow year on year so if they do that this year, I wouldn't expect the share price to stay at current levels.

I have been pondering about GXH as well Nasi Goreng... I was fortunate with GXH... was my first Double Bagger. Exited and have been throwing up the ideas of what technical implications they have with all the competition for retail pharmaceuticals and products online.

Their strong capabilities and assets in the healthcare and GP area are one sector I think that is lucratively profitable. I see it as a owning the car that is operated and charging others to drive it kind of scenario. I have a feeling they are making some of the profits seem muted by spending on buying additional facilities, improvements and equipment. Be interesting to watch this one. Massive discount to approx a year ago.


Good management

[GTM 3442]

Two classes of losers.

My preference is for those which have been whacked by some sort of external one-off event. Like Seeka with the PSA virus or Chorus and the Commerce Commission. There don't happen often.

The others, well you have to be a believer in the "turn-around" story, don't you. Can the current management do it? Is there new management who can do it?

All I can think of at the moment is Fletcher Building. . .

[artemis]

Possibly PIL. Share price badly damaged by a potential Arthrem health issue and they don't seem to be doing the TV advertising at the mo. A lot of Artevite advertising though (canine product), maybe taking the place of scheduled Arthrem ads. Recent launch of both products on Australia but a bit later than planned so revenue not as expected.

It is not clear to me if it is the generic extract or Arthrem in particular. Seems unlikely to be just the latter as various formulations of the extract are widely used globally. (A Nobel prize was awarded for its use in treating malaria a few years ago.)

PIL seem to be proceeding cautiously but say the incidence of adverse reactions is minute.

So a risk but perhaps worth a punt at under a cent.

[Valuegrowth]

Thank you so much everybody for some great ideas.

Today’s some top winners in the market are yesterday’s neglected stocks. Neglected shares are under-researched by analysts and potentially misunderstood by investors. Some analysts specialized in overlooked and neglected stocks will look for companies with low analyst coverage, above average earnings growth and that are cheaply priced according to their price to earnings and price to book ratios.

https://www.fool.sg/2018/04/05/these...-52-week-lows/

https://www.quant-investing.com/blog...ntum-companies

[Valuegrowth]

Following stocks also came into my mind. In addition to stocks which are having major uptrend (multi baggers) attractive growth oriented and fundamentally sound stocks in the following categories also could outperform broader market in 2018/19.

Beaten down value stocks
Beaten down growth stocks
Beaten-Down Turnaround Candidates

https://seekingalpha.com/article/413...sion-resistant

Stocks For 2018: Beaten Down, With Dividends, And Recession Resistant

[steveb]

Of course don't forget BLIS seems to me it's going to remain a dog.Any profits they might make the directors will gobble it up in directors fees.I have a small holding but have written it off as not worth selling.

[Valuegrowth]

I also have one in the same sector. For nearly 10 years I didn’t see any progress. It also will stay as a dog for the time being. Bio technology firms have high risk as well as high return. I saw somewhere: Forget the tech bubble. It’s the biotech bubble you should worry about. I will stay with simple businesses that I can understand well. That doesn’t mean I will avoid tech stocks. I love untestable technology. We see technology everywhere. Even Agri Firms are making use of technology to raise their productivity and growth. They save a huge sum of money by adopting modern technology.

[kiora]

" I love untestable technology" I presume you mean uncontestable ?

LoRaWAN
This space potentially game changing

https://www.digikey.co.nz/en/article...ttery-life-iot

[Valuegrowth]

Thank you for the link.

" I love untestable technology" I presume you mean uncontestable ?

LoRaWAN
This space potentially game changing

https://www.digikey.co.nz/en/article...ttery-life-iot