You Snooze, You Lose. POUNDLAND (PLND)
Before I begin, let me clarify where I am coming from to folks who do not know me. I am not a day trader; I refuse to be a day trader and my plays are medium to long term plays most of the time.
Let’s re-cap… TESCO (TSCO) has had positive news (or has it?). The short from £2.17 paid off a few times. Down it went to £2.01, then £2.07 and £2.12. It may be that it will go back up to the £2.30ish level and stay there, which the market seems to be comfortable with. I am out of TESCO for now as a trade.
My BHP BILLITON (BLT) long last week at 1334p went all the way to 1380p, and down today to around 1300p, which looks to be an amazing buying opportunity for the folks who missed it last week at such a low price. My target remains £15.00/£16.00. Folks need to have a little patience with this one, but we could potentially see this getting back up to £20 per share and I will be holding out for that level. I do have the patience.
As for LLOYDS (LLOY), I am long from 87p with a target of 94p. It is taking a little longer than expected, although I have another two weeks in my ideal time frame to make it to the 94p.The beauty of this price action is that it is not weakening to any negative level. Again, needs patience.
Moving on to Poundland (PLND)… I like this company. I do drop in once in a while, and I’m often impressed as to the quality of their goods considering the price. I bought emergency batteries for my watch and it has been working for over a year. I paid £1 for a pack of batteries which would cost over £30.00 in some other shops; now that creates some loyalty! And if folks think it is only the lower income bracket who shop at Poundland, I have to say I beg to differ. They recently opened a branch in Chiswick, West London, and it always seems to be busy. Years ago I read an article about 99cent stores in the US and what a great success they became. It always stuck in my mind that their busiest store out of some 500 stores at the time was their Beverly Hills branch in California. The rich love bargains too!
I think Poundland has a great future and I have gone long at £3.21 with a £3.60/£3.80 target in the medium term. I have just discovered that almost every broker out there is positive about PLND and they have similar or higher targets (not that I take any notice of brokers but it helps if they are on my side).
My position on DJIA hitting 20,000 by Christmas has not changed… even though I am a lonely voice.
On a separate note, I am starting an exciting new online TV Channel www.clevergamestv.com about the stock market. If you would like to contribute, feel free to get in touch. We are looking for presenters who will stand out. Are you the girl/boy for CGTV?
Good luck
All in my humble opinion and no investment advice intended.
Andre Minassian
CEO www.clevergamestv.com
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