Discussion in 'Stocks & Derivatives' started by scott_reeve, Oct 6, 2019.
Are you at all concerned about potential over-valuation? Punching such high returns for the year and with no obvious resistance line, I’m wary about it running out of steam eventually and crashing back down.
Wow, they run the OzLotteries site. I presume that's a huge cash cow and they get a cut of every transaction?
Surely that market is saturated though? Not like you'll get an extra few million people suddenly buying tickets every week.
Earlier this year, many were saying JIN was too expensive at $15 (double at where it started in 2019) and recently it hit $27.54.
I do not know much about JIN's fundamentals. But from a charting perspective:
* For the last 33 months, JIN has had 27 green months and only 6 red months.
ie. JIN has been in a major bull market for a long time = considerable momentum. "the trend is your friend". "Let the runners run".
* True sector leaders always appear to high or too expensive to most investors. When in reality, usually the best time to buy them is when they are at 52 wk highs and making all time highs (No overhead Resistance (trapped buyers from previous highs that would be happy to sell for break even)).
* JIN hasn't had any Stage 4 (bear trends) in years. The base periods (Like April-May & July-Aug 2019) are used as a springboard for further new highs. This is what you want to see in major Stage 2 bull trends.
These concepts are covered in Mark Minervini's 1st book (Chapter 5 & 9)
Similarly, APT has performed like JIN. It recently hit over $37. It was $6 at the start of 2018 and $12.40 at start of 2019. Many were saying it was way too expensive over $20, yet the charts price action has meant there have been many profitable entry points throughout the last couple of years.
(I do not hold these)
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