Zico Files : The correction came and went

Now that the sky is not falling, is there still opportunities in the market place. Yes there are.
In a market that has done well, one often hears the remark – “I will enter this or that stock when the stock’s price comes down by this or that much…”. And yes, when the correction comes, that level that the investor was looking for comes down a few notches like a moving target. It’s as if the investor has no intention to enter the stock. It happens in every time.
Earnings matter at all times but they matter even more now – as can be seen when highly valued companies announced a shortfall, the stock price gets hammered. Examples include Twitter (TWTR US) ,Tesla (TSLA US) and even the Big Blue (IBM US).
And in the last session our stock Facebook (FB US), got sold after the results were released. The company delivered a solid quarter and best earnings estimates. The reaction is not any different from the stock price trajectory of other similar fast-growing companies. Stocks like Google (GOOG US) come to mind. Question is whether Facebook can monetize its positions in the different segments. And we believe it can and then price weakness today is the opportunity to enter.

It’s discipline that helps you to make money and try to avoid ratcheting down the entry level to an unrealistic price.

A Bit About Zico
Zico is our in house equity consultant who is currently a private fund manager with more than a fair share awards in the course of his illustrious career.
Having managed both global and also regional themed equity portfolios, he specialises in stock picking that maximises returns for his various absolute return portfolios.