When to Take a Second Look at Disappointing Stocks

THE WEEK: Morningstar columnist Rodney Hobson says there is nothing wrong with revisiting a stock idea - no one gets it right all the time

Rodney Hobson 9 December, 2016 | 11:55AM
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The thing I like most about Twitter is that your views can be challenged, often by complete strangers. As long as it doesn’t turn you into a ditherer, having second thoughts can be therapeutic. No one gets it right all the time.

I’m nervous when profits go down and shares go up

I tweeted that figures this week from van hire company Northgate (NTG) were disappointing and noted that the chief executive is leaving. The shares leapt, however, prompting me to advise against chasing them higher. They have been on a long slow decline for the past 12 months and I would like more evidence that the company has turned the corner.

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
CMC Markets PLC271.50 GBX-1.63
IG Group Holdings PLC820.00 GBX0.00
Redde Northgate PLC390.00 GBX-1.02

About Author

Rodney Hobson

Rodney Hobson  is a columnist for Morningstar.co.uk and author of several investing books, including The Dividend Investor and How to Build a Share Portfolio.