As most
speculative stocks are not profitable or have historically low income or sales, typical valuation metrics such as price-to-earnings (P/E) or price-to-sales (P/S) ratio are not applicable.
Eagle Securities Head of Research Chris Mangun added that, "we will continue to see more action in second-liners and
speculative stocks as we wait out the foreign selling.
A few small
speculative stocks rose sharply including Al-Salam Group Holding, which gained 10.
The report indicated that individuals and small financial portfolios targeted, in particular,
speculative stocks, but many of them engaged in noticeable sell-offs, fearing that the companies that have not publicized their financial statements might fail to do so within the remaining grace period.
Traders are buying
speculative stocks to book a quick profit and either cash out or rotate into the blue chips.
Blue-chip stocks (those with a market cap of greater than KWD 500 million) saw their ADTV increase by 11 per cent on average in 2014, and therefore the decline in trading activity was mostly centered on small- and medium-cap stocks, with
speculative stocks seeing the strongest decline in trading activity.
According to Shiimi ya Shiimi, SIM does not want to invest in
speculative stocks as their mandate is to safe guard investors' money.
With regard to frothy,
speculative stocks, some people are saying maybe it's time to take a few chips off the table," Carey said in a phone interview.
Dubai: The positive trend in UAE shares continued yesterday, as both Dubai and Abu Dhabi stock measures rose moderately with investors continuing to place their bets on
speculative stocks rather than on bluechips.
South Korea's legion of retail investors, mainly middle-aged people, tend to jump on
speculative stocks.
Regional markets witnessed a surge in volumes, with
speculative stocks appreciating by as much as 80pc.
He stressed the need of educating the Investing masses to avoid any incidence of losing their hard earned money by going into
speculative stocks instead of investing into solid stocks having past proven records of performance and having potential in the days to come.
