Question of the Week

Questions of the Week

Co-founder of the Switzer Report
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Question 1. What's your opinion of Bingo Industries (BIN)? I think they have good fundamentals and this share price drop is a bit of an overreaction. What do you think?

Answer: Yes, no doubt an over-reaction. But dead cat bounces are the norm when a sudden downgrading in sentiment occurs. Fundamentals might be OK, however the market has taken a call about the credibility of the management. I am not a buyer.

Question 2. One of the stocks I have liked is Service Stream (SSM). It has plunged over the last few days, as the three top directors, including the CEO, all sold half their holdings. I am wondering if I too should get out, as I can't think of any reason why they would all mass exit after it mysteriously jumped, other than if they believe that it’s not going any higher. This strikes me as another example of directors behaving badly.

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