Bottom Fishing

We seem to be going through a period where stocks that underperform analysts expectations in the reporting season are getting smashed.

Its always amusing when a company's numbers come in in line with the guidance they provided, but the analysts get it wrong, and the numbers miss their collective expectations.

They all get upset and smash the price, and blame the company!

Never really understood that one, but maybe it gives us an opportunity.

However Bottom fishing is always dangerous, catching falling knives etc., and not sure if it was Buffet or Munger who said, turnaround stories seldom turnaround!! worthy mentors that we should respect.

so we need to be careful.

So why do it?

I think there are often cases where a sector as a whole is on the nose, and some good companies get trashed.

so finding the good companies is the challenge.


BlueScope steel has had a big pullback, might be worth a look, in a very competitive global market,  have paid down debt over the last couple of years and are leaner and meaner.
Chinese competition are facing higher energy and wages costs.
Might be worth a punt.




BRG breville group also had a big pullback on a profit warning.
Don't really understand this stock, as unusual for an Australian company to beat the Chinese at building toasters you would have thought.
But they have been profitable and well run, kicking plenty of goals on a global market.
Worth a punt?

DYOR, and be careful, turn around stories seldom turn around!

Performance
Code		Buy date	buy price	current	Sell Date	Sell price	Profit(loss)
EPW	ERM Power Ltd	21/05/2014	$1.91	$1.92	22/8/2014	$1.92	0.52%	sold
CRZ	Caresales.com	23/05/2014	$10.53	$11.29			7.22%
CCL	Coca Cola Amitel	26/05/2014	$9.69	$9.16	22/8/2014	$9.16	-5.47%	sold
SEA	Sundance energy	26/05/2014	$1.04	$1.38			33.33%
WTF	Wotif.com	28/05/2014	$2.42	$3.33	11/7/2014	$3.34	37.60%	takeover
REA	Realestate.com	28/05/2014	$44.19	$48.37			9.46%
SUL	Supercheap auto	7/07/2014	$9.16	$9.63			5.13%
TRS	The Reject Shop	7/07/2014	$9.66	$9.57			-0.93%
CSL	CSL Limited	15/07/2014	$68.55	$74.19			8.23%
CTD	Corporate Travel Man	15/07/2014	$6.55	$7.07			7.94%
FLT	Flight Centre	15/07/2014	$45.84	$47.43			3.47%
SEA	Sundance energy	31/07/2014	$1.34	$1.38			2.99%
						Avg	9.12%
	Performance all ords over Period
All ords		21/05/2014	5403	5634			4.28%