Bottom of the Cycle Leverage
John Robertson
PortfolioDirect
At this point in the resource sector equity cycle - after an 87% median decline in the prices of ASX listed stocks since the beginning of 2011 - very large returns are possible from individual stocks as minor changes in sentiment produce disproportionate price reactions. Investors seeking to take advantage of these occasionally high returns need to exercise caution. Companies with inferior development attributes can benefit in this way as well as higher quality companies. Reasons for price movements are also sometimes hard to discern or predict. Against that, there are increasing numbers of companies with extremely depressed share prices and high quality mineral prospects or development properties. The table lists stocks with a high PortfolioDirect quality rating but with a cyclical price decline in excess of 85%.
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John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business strategist and investment market professional for over 30 years after starting his career as a Commonwealth Treasury economist in Canberra. Since being Australia's top-rated commodities analyst and chief economist at one of Australia' leading stockbroking firms, he has advised companies across the mining, consumer products, IT and biotech sectors on their equity market relations. He leads the firm's investment evaluation and security structuring activities on behalf of the Australian Small Scale Offerings Board (ASSOB), the world's first equity 'crowdfunding' investment platform. John Robertson discusses the interaction of mining and investment markets in his weekly 'From the Capital' column in Mining Journal.
John Robertson
PortfolioDirect
John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business...
Expertise
No areas of expertise
John Robertson
PortfolioDirect
John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business...
Expertise
No areas of expertise
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