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RTD - Why? (RTD)     

Nitefly - 15 Sep 2003 10:55

Why are we again at 10.5p bid?

It doesn't add up...

Good Results + Strong buying pre results + Christmas online buying soon = Price drop

Then again some companies that have debt for equity hanging in the balance, poor results and bankruptcy around the corner and they go up!

Why sell now at a loss?

Wont that be a kick in the teeth when we see 13.5p 14p again!

Best of luck all.

Douggie - 22 Oct 2003 23:16 - 237 of 2406

I,m with you, longing for a breakout from this 10/10.25p watching ZOO where I intended to be, but expected rtd to go first feeling as blue as I want to see rtd on my screen, a slow steady climbwill please me well, tho I would like to experience a ZOO type ride xfinger and best wishes ti kindred spirits..........:-))..I,m comforted by your positive postings keep em comin

dalrymp - 23 Oct 2003 00:20 - 238 of 2406

We have absolutey nothing to worry about! I hold 150,000 shares and will continue to hold. I've read on several BBs that the chart looks excellent for a break out. Come on RTD!

blakester - 23 Oct 2003 12:36 - 239 of 2406

A 0.5p drop! MM games? The Market collapsing? Or a buying opportunity.....

scotinvestor - 23 Oct 2003 12:53 - 240 of 2406

NO NEWS seems to equate to drop in price week by week.
Even the buys are more than sells recently so there is no logic for a 0.5p drop.
How much further can it drop. As the market has the potential to fall sharply again.

blakester - 23 Oct 2003 12:58 - 241 of 2406

Its scary man

Douggie - 23 Oct 2003 13:43 - 242 of 2406

.............:-(....:-(..D

overgrowth - 23 Oct 2003 20:10 - 243 of 2406

The general consensus is that the markets have moved up too fast, with conflicting economic data and that's caused a bit of a downturn. The doom mongers will have us believe that the last major "correction" (= precipitous fall) is upon us - though there aren't too many of those around any more.

Remember that September and October are notoriously bad months for the markets.

I've often wondered if it makes sense to sell your portfolio at the end of August and buy it back in November/December. Has anyone ever tried this ?

I could have made a packet if I'd shorted most of my portfolio today.

The good news is that these nice little dips will make the next market upturn much more stable and sustained.

Interestingly enough RTD was 6th in my personal league table of losers today, seems quite solid in that context.

washlander - 23 Oct 2003 21:24 - 244 of 2406

Still those 100 thousand buys every morning

nematode - 23 Oct 2003 21:39 - 245 of 2406

tell me someone,is this a good company to invest in???

nmjnmj - 23 Oct 2003 21:56 - 246 of 2406

Lets hope interest rates don't rise or that will mess things up!!

blakester - 24 Oct 2003 09:27 - 247 of 2406

My thoughts exactly nmjnmj

blakester - 24 Oct 2003 12:53 - 248 of 2406

Hoorah, another drop! Is there no resistance for this share?

Chelsea1957 - 24 Oct 2003 22:50 - 249 of 2406

Keep the faith, i've just bought this share - think medium/long term i'm sure its a good story and the big gains are to be made in the future,if we had a crystal ball and we could predict all short term movements then....... this time next year we would all be millionaires! (just like the Trotters!). Tell me does anyone know if "Dell boy" ever gor involved in stocks and shares, and if so was he one of these mysterious MMs i've heard people talk about?

nematode - 24 Oct 2003 23:59 - 250 of 2406

As you guys know I am a great supporter of RTD because it is a GOOD BUSSINESS.The fact I am not a day trader but a long term holder means it does not worry me too much about short term fluctuations.The following article will also explain why;

Ignore the noise and numbers- buy good businesses
There are many different styles of investing. Some people specialise in sectors like technology or healthcare; others favour shares that look cheap in relation to earnings or assets. There are publications devoted to low-priced penny shares. My approach is none of these but is also very simple. I like to recommend shares in good businesses. I dont much care about the price and I dont claim any special expertise on when to buy or sell. Once I find a good business I recommend the shares; if I am not sure, I dont make a recommendation.

The simplicity of my approach helps me deal with the pressure of having to come up with new investing ideas week after week. People often ask me where the ideas come from. The answer is that they are not ideas. I spend my whole time studying the stock market looking for just one thing, good businesses. If I am right about the business, the shares will do well, and vice versa.

Many people fail in the stock market because they are trying to do contradictory things. They are trying to both pick the best shares and time their buying and selling. For instance, the national and Sunday newspapers are full of sell recommendations for shares. These sell recommendations are typically based on what I regard as ephemeral or highly subjective factors. For example, they might recommend selling because two directors have sold shares or because the shares have gone up too much. I dont pay the slightest attention to these recommendations.


Take newspaper sell recommendations with a pinch of salt
The main reason why newspapers make sell recommendations is to draw the attention of readers to the fact that they recommended the shares at a lower price. Thus any share that rises a huge amount will do so against the background of numerous sell/ take profit recommendations. If you listen to these you risk missing out on the biggest source of wealth in the stock market the one that comes from buying shares in a great business and holding them for years and years.

This is one of the reasons why the founders and major shareholders in a business are so often the ones that make the most money. They either have no thought of selling or make minor sales periodically to realise some cash with little thought to whether the timing is good or not. Investors with small shareholdings who are continually wondering whether to sell or not are at the mercy of over-reacting to swings in sentiment or minor negative developments that dont really matter.

Imagine if Warren Buffett came into work one day and found that two of his fellow directors had sold shares in his master company, Berkshire Hathaway. If he said, right, thats it, Im out and put his entire holding on the stock market, everyone would think he had gone mad. Yet many small investors do just that. In my view the only time when directors sales carry a message is when they are heavy sellers in a weak market; that is a serious warning signal. It is also close to being criminal behaviour because if they know something that would make the shares fall they should tell the market.


Valuation is far less important than finding good businesses
Excessive attention to valuation risks the same absurdities. Analysts notes are often incredibly precise in their approach to valuation and make elaboration comparisons between valuations of shares in similar sectors. I guess there is a deep-seated human need to try and impose order and a scientific approach on the chaos and uncertainty that makes up the stock market. The reality is that most stockbroker research is trying to do the impossible. It may be interesting and provide food for thought; it is a million miles from being the last word on the subject.

Stockbroker, Peel Hunt, has just produced a note on one of my recommendations, Knowledge Technology Solutions. When I asked KTS chief executive, Dr Marc Pinter-Krainer to tell me what was in the note, he sounded slightly uncomfortable when he said that for the year to 30 June 2006, Peel Hunt was forecasting sales of 8.1m and profits of 4.4m. Last years turnover at KTS was 161,000 against 76,000 the year before. In the current year annualised revenue is running at over 500,000; that is great progress and certainly suggests that much higher sales are possible by 2005-06. But attempts to quantity the number are either guesses or some form of simple regression analysis; lets project the trend forward a few years into the future and see what happens. It begs the really interesting but much tougher-to-answer question of whether the trend will stay the same, improve or deteriorate.

It is instructive to look at old copies of Company Refs, a publication that carries stockbroker profit forecasts for quoted companies, usually for two years ahead. Compare those forecasts to what actually happens and usually, especially where it matters, they are spectacularly wrong. The truth is that I am not very interested in analysts notes on companies, though talking to a good analyst can be instructive.


Shares in good businesses are always cheap
It is a bit like that old saw of wiseacre investors that the important stuff about companies is buried in the notes to the annual Report & Accounts. Maybe it is and maybe you will enjoy finding it if your favourite leisure activity is reading the telephone directory. Unfortunately, I have a low boredom threshold and find the front end of the report and accounts, the chairmans statement and chief executives report on operations, both far more interesting and more useful. This is partly because I think it is usually fairly obvious when you find a good company. If you have to spend hours with a wet towel wrapped around your head studying the fine print, the company sounds to me as though it probably isnt worth the bother. But it is also because much of my interest is not in the nitty-gritty of the figures but in the capabilities of the person, or people, behind the company . I learn more by reading what they say and by actually talking to them than I ever will from last years numbers.

My attitude long ago led me to conclude that trying to value companies is mostly a waste of time. Remember what I said in the first paragraph about finding good businesses being the key to successful investing. Imagine if I said to myself that the companies I found had not only to be good businesses but also had to be cheap. Very often these twin objectives would be in conflict. The truth is that shares in good businesses are almost always cheap in the stock market whereas those in bad businesses are always expensive.

Many investors imagine that the late 1990s and early 2000 saw a crazy period in the stock market when all shares were grotesquely over-valued. But that is not really true. The real bubble in that period was that many poor-quality businesses were on ludicrous valuations. I admit that many good businesses were also on valuations they could not sustain. But the problem there was mainly cyclical. Between early 2000 and early 2003 demand in many industries collapsed or at least had a bumpy ride. This hit most companies. But the good companies will recover and eventually their shares will scale new peaks. It is only the shares in the bad businesses that will prove to be have been over-priced even for the long-term investor.




dalrymp - 26 Oct 2003 06:13 - 251 of 2406

nematode

Good post and very relevant as RTD is a good business with a great future.

debuwebu - 26 Oct 2003 16:25 - 252 of 2406

nematode,
Can I ask you how long you intend to hold onto these stocks, as the general view I pick up from this board is after Christmas most people will be dumping a large percentage of their stocks as they feel the price will reach 30 pence or more

Nitefly - 26 Oct 2003 19:31 - 253 of 2406

Well, as always! its about making money. The real questions are, how much is enough and how long dare you keep hold of a block before any MM's hike it back down?

I'm sure everyone will know when the right time has come and no doubt we will all still be talking about it :)

Good luck all!

nematode - 26 Oct 2003 22:55 - 254 of 2406

Well then it's upto each individual but I would say RTD has a great future so when they do reach 30p then top slicing would be better option than selling the lot as there could be alot of "heal kicking" when the shares go even higher.

dalrymp - 27 Oct 2003 09:21 - 255 of 2406

nematode

Do you know anything about charts....if so, how is the Rtd chart looking?

Douggie - 27 Oct 2003 10:17 - 256 of 2406

..nematode MANY THANKS for your recent informative postings :-)....good to see lots of interest in/on this site, it would be nice to have an idea how many visitors look in if you do say hello best wishes all, xfinger pay day is coming
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