The Opportunity in Poor Performing stocks: A glance at GSE. 

Today marks the 5,074th trading session on the Ghana Stock Exchange and as at this point of the market and this year so far, below are the performers on the exchange considering their YTDs. (Courtesy: HFC Brokerage Ltd ).

Best Performers:

Worst Performers:

As you can see, the poor performing stocks have really fallen deep and for most of them, more falls are expected before the year ends.

However, as an investor, you should always look beyond the bleeding. They say, the seed must first fall on to the ground, get rotten before it can bear fruits.  And this is the case of some of these stocks. 

When stocks fall, do not panic, try to read more and look for the signs. First,  27th  signs or issues that could have cause the fall, then the hidden treasures behind the fall. When you do the due diligence well enough, you will be going in for more of the stocks and by so doing, you are buying at a low price. 

My biggest surprise on GSE so far is Tullow Oil. Most of the holders of this stock bought it at the IPO price of Ghc 30 (if my memory s is right) and now the stock has fallen to Ghc 17.74% recording a -34% loss this year alone. This particular fall, no doubt, was caused by the uncertainty of Tullow oils operations in the Boundary waters (which was in dispute). Just yesterday,  this verdict settles all cases and Tullow will resume operations. What do you expect will happen to the price on the exchange? Obviously and logically it should rise. How fast? I’m not sure but this is what should happen provided all things are constant. 

Pick up the other poor performing stocks and find out more about each of them and then invest wisely. You can reach out to me to find out more on the other stocks. 

Keep Investing in the Capital Market because that’s where the money is. 🙂 🙂

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