Is It Time to Jump on the Mining Bandwagon?

Is It Time to Jump on the Mining Bandwagon? By John Cornford The 'efficient market' theory held sway for quite a time in the '90s, and for some time afterwards. It held that share prices at all times reflect all that can be possibly known about all the factors that determine their value.  When you think about it, that is a pretty sweeping assumption. If there were more than a few 'unbiased' and competent analysts following a share all the time and constantly publishing their opinions, and there were enough investors buying and selling based on their own interpretation of those opinions (and who also have the choice and the cash to buy and sell what they want when they want), then, perhaps, you can say there is a fair market. But these conditions only ever apply to a very small part of the market. A FTSE100 stock might have ten analysts following it. But in the small- and medium-cap sector (including the FTSE350) it is frequently hard to find any analyst at all following a company. Often, shares dawdle along with practically no trading. Even if there is analyst coverage, it will probably be via the 'in-house' broker, who, as we all know, exists only to raise money for his clients and, strangely enough, only happens to publish something occasionally but certainly some time before a 'surprise' cash raise comes along... Click Here To Read The Full Story The Master Investor Market Report The FTSE 100 closed the day at 6,750.40, an increase of 26.40 points. The FTSE 250 rose 196.81 points to finish at 17,265.91. The FTSE All Share climbed 19.27 points to finish at 3,663.77. The FTSE AIM All Share finished at 751.19, up by 4.92 points. Shares in online estate agency Rightmove (RMV) surged 331p to 4,121p after revenues for the half year ended 30th June climbed by 16% to £107.9 million. Site traffic improved by 15% to 127.5 million visits a month with average visit length also increasing. Management said that there may be an impact on the property market in the event of Brexit but that the firm's subscription model should give them good visibility with regard to future trends. Interim dividends will be raised from 16p to 19p.   Download our July issue today! Click HERE to read. Housebuilder Taylor Wimpey (TW.) reported that profits before tax climbed by 12% to £267 million for the six months ended 3rd July. Both completions and average selling prices grew steadily and the firm's order book for the remainder of the year has a value of £2.1 billion. Management said that there has been no impact so far from the recent Brexit vote and that forward indicators appear positive. The shares rose by 7.32% to 154.60p. There was mixed news in the hospitality sector as Mitchells & Butlers (MAB) reported a 0.7% drop in like-for-like sales during the fifteen weeks ended 23rd July and Marstons (MARS) reported like-for-like growth in all of its segments during the sixteen weeks to the same date. Both companies said that mixed weather has dragged down demand, but Marston's added that EURO 2016 had been a boon while Mitchells & Butlers said that the competition had a negative impact. Mitchells & Butlers shares closed flat at 246p, while Marstons climbed 3.60p to 142.80p. Tomorrow's news today Diageo (DGE) and Sky (SKY) will release interim results. Quote of the day "To be or not to be. That's not really a question." - Jean-Luc Goddard Latest Stories Chart Of The Day: ITV By Zak Mir Mystery and the stock market may be two things that go hand in hand for some, but it is usually the case that we have a rational explanation both for sentiment and value… Click Here To Read The Full Story A Possible Brexit Bargain: Fidelity Special Values By Nick Sudbury The surprise result of the EU referendum created a lot of panic selling and although most of the Brexit bargains have now recovered there are still one or two opportunities to pick up a good long-term core portfolio holding at an attractive entry level… Click Here To Read The Full Story HSBC: A Brexit Beneficiary? By Robert Sutherland Smith HSBC (HSBA) at 492p: investors can now buy HSBC shares at half the price they were seven or eight years ago on a valuation which is a 33 per cent discount to net assets and on a dividend yield of over 7 per cent. That seems to discount a lot and leave room for long-term appreciation… Click Here To Read The Full Story Chart of The Day: BT Group By Zak Mir It may be said by uncharitable souls such as myself that BT Group has been squirming like a toad regarding its dominant position in the market with its Openreach operations. However, it could be argued that the blame lies with the "regulator" Ofcom... Click Here To Read The Full Story Mellon On The Markets By Jim Mellon The first month anniversary of Brexit was marked by an all-day debate in London hosted by the BBC and the admirable Intelligence Squared. I went along, partly out of curiosity, and partly to see my friend Dan Hannan, possibly the most articulate and passionate of the Brexiteers… Click Here To Read The Full Story Join the movement on social media: Copyright 2016 Master Investor Ltd, All rights reserved. You are receiving this email because you opted in at our website. 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