When Shares Come Back From the Dead

THE WEEK: Is there anything more gratifying than being rewarded for playing the long game, asks Morningstar columnist Rodney Hobson? 

Rodney Hobson 28 June, 2019 | 10:15AM

carpet

Few experiences in stockmarket investing offer more pleasure and hope than seeing bombed out shares come back from the dead. While there is no excuse for the twin sins of indolence and refusal to admit mistakes that lead investors into clinging on while shares are falling, it does provide gratification for those who, like me, believe that investing is for the long term.

Playing the Long Game

Take Carpetright (CPR), for instance. Four years ago the shares hit a peak of 600p; now they are around 16p, having lost an amazing 97% of their value. Few companies fall so far from grace and survive but the floorcoverings retailer is still with us – only just, though, as it nearly went bust last year before a rescue restructuring that involved shutting underperforming stores and raising £65 million.

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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.

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Carpetright PLC  
Serco Group PLC116.66 GBX-4.69
Wood Group (John) PLC151.87 GBX-9.03

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.

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