The 20 Most Rising Stocks In 2006 With Disappointing Return This Year

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The 20 Most Rising Stocks In 2006 With Disappointing Return This Year

Aiming at a higher return than what the market usually offers, investors sometimes resort to buying more “exotic” stock, which does not obey any rules, and whose price changes sometimes illogically.

Very often, investors do not even notice some companies, which are undervalues because of their small size, low liquidity, or lack of any information about them.

This is how we, the traders on the local stock market (which is luckily still far from being an effective market) end up watching how stocks of companies we know nothing about increase price several times for no obvious reason (to us).

Even if they want to, investors with medium sized portfolios are unable to buy such stock, because of its extremely low liquidity.

Is it really worth trying? This is what we will try to find out with this article.

Profit.bg made a list of last year's most rising stocks. Logically, low liquid and less popular companies topped the chart.

And we took a look at how these issues perform now, 10 months later.

The question was “Did these companies bring the same immaculate return to investors, and do they perform better this year?” and the answer is “No”.

The 20 issues that advanced the most in 2006, brought an average return of 2 346,28% to investors back then (a very impressive figure).

However, this year, the same issues bring an average return of 88.8% year-to-date to investors who put in (or rather managed to put) an equal sum on all positions. (not that impressive)

By comparison, BG40 has added 207% year-to-date, and there is a considerable number of investment schemes with return that tops 100%.

Issuer22 Dec 2006 Price11 Oct '07 Price% Change In 2006% Change Year To Date
1Chesterfield AD Sofia43,8537,0818900,00%-15,44%
2Alfa Wood Bulgaria19,85503870,00%151,89%
3Moststroy AD715,71757,92875,88%145,62%
4Transstroy Burgas AD606,696072789,00%0,05%
5Energoremont Holding AD45,4247,362531,58%4,27%
6Bestechnika Radomir6,9914,271897,14%104,15%
7Sfilm10,631,481671,67%-86,08%
8KMM-6816,8832,411588,00%92,00%
9Soparma Properties REIT21,116,921523,08%-19,81%
10Kauchuk AD69,4974,61163,45%7,35%
11Hidropnevmotehnika38,28208,161155,08%443,78%
12Pirinhart4,844,21110,00%-13,22%
13Orgtehnika1120,261000,00%84,18%
14Peshtoremont12,3515,55937,82%25,91%
15Holding Nov Vek425,06900,00%526,50%
16Zaharni Zavodi6,4127,37741,11%326,99%
17Eurohold7,618,61701,05%13,14%
18Bulgarian Sugar AD9,53,6533,33%-62,11%
19Varna Plod AD289,99460522,30%58,63%
20Elprom ZEM26,223,26515,02%-11,22%

Average Correction2346,28%88,83%


Prices are in BGNPrices in BGN

*the split some companies made this year is reflected in the price given for December 2006.

This year, the most rising of last year's top 20, has been Holding Nov Vek, which has added some 526.5% year-to-date. However, the issue's liquidity is so low, that it is extremely different to buy at the beginning of the year, even if you decided to, which means your average return would be way below the one given above.

Meanwhile, 6 of the 20 have declined considerably this year, the biggest loser being Sofilm, which slumped more than 86%.

There is a very popular with some people strategy of buying declining companies, suspected of simply being temporarily undervalued.

We tested this strategy as well and found out that the biggest losers last year have added 24.25% on average year-to-date (after dropping 60% on average last year). Their liquidity has also been extremely low.

Issuer22 Dec 2006 Price11 Oct '07 Price% Change In 2006% Change Year To Date
1Vazrajdane 26 Holding0,70,7-97,86%0,00%
2Khan Krum1,11,1-94,46%0,00%
3Yavor AD Petrich1,21,2-93,43%0,00%
4Rodina 91 AD1,41,32-92,29%-5,71%
5ZINO AD1,561,3-84,40%-16,67%
6Zavodski Stroeji 4,14,1-72,67%0,00%
7Vereya Tour AD37-70,03%133,33%
8Interior AD Elena0,31-70,00%233,33%
9Trakiiski Pamuk AD0,70,7-65,00%0,00%
10ZSK Lozovo1,41,40,00%
11Himko AD Vratsa0,120,26-63,64%116,67%
12Nitex0,620,5-55,71%-19,35%
13Holding Coop Ug2,012,58-52,71%28,36%
14Lovetch Tours1,92,110,53%
15Bulgarian Investment Group10,86-50,00%-14,00%
16Haskovo Tabak1,11,1-50,00%0,00%
17Ecotab AD0,880,7-48,54%-20,45%
18Fist May – 5-1,31,3-48,00%0,00%
19Euroterra Bulgaria1519,7-46,43% Добави коментар

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