Do you use broker recommendations when selecting which stocks to buy?
Dick Smith Holdings is an example of a stock recommended by brokers whilst it’s price was collapsing.
The broker consensus for Dick Smith Holdings prior to the stock being suspended from trading due to going into voluntary administration is shown below.
Unfortunately, many brokers were still recommending their clients buy or hold Dick Smith Holdings under the misguided opinion that they would be ‘getting a bargain’.
SET Investments signals will ensure that you never hold a collapsing stocks like Dick Smith Holdings or Babcock and Brown or One Tel or HIH Insurance and there are many more examples.