What qualities make a speculative stock attractive to you?

  1. Max Dalton profile image90
    Max Daltonposted 6 years ago

    What qualities make a speculative stock attractive to you?

  2. ramkimeena profile image60
    ramkimeenaposted 6 years ago

    A well-founded rumour or news that the company is going to receive huge orders  will be attractive. For example Steelcast receiving orders from US Railways. If the company is able to strike a joint venture with majority stake with a well reputed foreign company, it  will  also push up its stock  price. Any rumour of  a turn around will  also attract the company's shares to the investors. Expansion, modernization  and diversification will also attract attention  as a Rights issue may come.  Any rumour of an impending bonus issue will also attract  attention but the book  value of the company should be high enough to confirm this news.

  3. MakinBacon profile image81
    MakinBaconposted 6 years ago

    For an established company that has been beaten down, I like to look at how much cash the company has, and how they're responding to the challenges. I think of Nokia in this case.

    It's still loaded with cash, has entered a meaningful business relationship with Microsoft, is cutting back on costs, and has a very good plan in place, if they can execute it.

    The fact that many analysts continue to beat them down is also a good sign. They have the pieces in place and in play to reward those will to take a mid-term risk on them.

    These are the types of qualities I look for, especially in a company with a track record that can be examined.