Stock Alert: when there’s blood on the streets…
12th November 2020 |
Amidst some of the greatest ever market crashes you can also find some of the greatest ever investment moves.
Baron Rothschild is credited in the 18th century as saying, “the time to buy is when there’s blood on the streets.”
That means sometimes the best investment move to make is when the market is on its knees and while everyone is selling or waiting, moving in can be a profitable move.
In 2020, it’s fair to say the UK market was brought to its knees. The crash in March was fast, furious and devastating to investors. The wider market has clawed back some of those loses. However, compared to where we were at in late 2019, there’s still some way to go.
In particular there are a number of industries which were hit harder than most that are still trading substantially lower than they were in late 2019. Now, there’s no guarantee these kinds of “Covid-beaten” stocks will recover to the position they were in before the Covid-19 crisis hit.
However, when you consider the strength of some of these companies before 2020 kicked off, when you look at some of the key figures in their balance sheets and when you appreciate the pent-up demand their industry is in store for in a post-Covid world, I think the time to buy is now, while the blood in the streets still hasn’t been washed away.
Today I’m bringing you two new UK-listed opportunities – one small-cap, one mid-cap – that are still at values half of what they traded at in late 2019. I believe they’re both in an industry primed for a fast move higher once the skies clear and the pathway out of the mess of 2020 is more certain.
They are what I love to call “bounce-back belters”.
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Regards,
Sam Volkering
Editor, Frontier Tech Investor
