Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
The unbelievably benign state of the market was underlined this week by its generous reaction to bad news from Cobham (COB). On good news shares go up big time. On bad news, these days, shares just go up.
I closed my Cobham bear at 122p for a loss on Thursday after the company announced a predictably dire set of results accompanied by its second £500 million rescue rights issue in less than nine months.
The stock closed up 15% on the day valuing Cobham at £2.3 billion a massive sum for an unfocused group which has all but wiped out its equity. It remains on my watchlist. I will revisit when the market regains some sense of sanity. But pro tem I take a small loss and, since there is no point battling against such a strong tide, retire to the sidelines on this one.
This article first appeared on the Nifty Fifty website which Tom Winnifrith runs with Steve Moore & Lucian Miers. To access the website ahead of the next share tip from Tom & Steve and ahead of a new shorting idea from Lucian Miers next week click HERE
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