Is Jerónimo Martins a bubble?

Again we face the Difficult Decision. To invest or not in the Portuguese retailer Jeronimo Martins?
The main driver of business growth is the expansion of Biedronka stores in Poland. At the end of 2010 the Jeronimo Martins group will have around 1640 shops and is estimated that within five years the number of stores can reach the 3000 number, translating into an increase in total group sales from a total of 8.7 billion euros to nearly 16 billion euros in 2015.
At the end of the decade the net income will stabilize at values close to 800 million euros per year which leads me to believe that the share price will continue to rise and that will not in any way be a bubble at present share price.
Risk factors like new players coming into the market of discount retail in Poland Can Affect the company leadership and the company expected return on investment.

Will I buy Martins Shares for an investment pourpose?
That is a 5 bucks question! I Can throw away the gain in stock price of 30% or 40% in the next coming years because I have better deals for my money.

S&P500 moving to 1262

In the last weeks we saw the S & P500 index to overcome the barrier of 1220 points. We expect now according to the Fibonacci projection one run Until 1262 points.

Watch the orange line for support of the medium term upward movement.

TomTom shares

I want to address some topics of trading:
- Lines Gaan
- Darvas Boxes
- Price Targets

TomTom's shares attracted my attention with the rise of 12.36% at September 30, 2010. A day that was not known any news, and this behaviour was unusual in relation to others.
The decision to get in the stock after rising so sharply can only be taken with conviction by a very experienced trader.
This initial rise was a sign that the stock price would start rising significantly.
Today, UBS raised its recommendation on the stock to buy with a price target of 9.50.
Again the prices broke a range standing well above the 7,50 line.

Irrational investment.

What really moves stock prices? What is an irrational attitude of investors? Imagine for example the actions of the Dutch company TomTom, a pessimistic investor negative towards the evolutions of the company's sales would think that 30 would be too expensive to buy, would it be rational? We have to understand why we're in the market and Why we are buying shares. Is the sole purpose of selling more expensive? If so it would not be irrational to buy the 30 with the goal of selling 40, but if we believe that purely a company's worth 30 why buy?

Imagine that an investor opens a short position in one asset because he believes it is overvalued, you still have to endure an escalation of prices up to 50 euros, before prices begin to retreat, his attitude was rational to sell?
The answer is no, perhaps that to be rational would need to know beforehand how other investors would behave.
Given that we do not know everything about the assets in which we invest, we can think that all attitudes are irrational investment ...

Message from the author

Papuasiainvest is founded with the aim of helping the investor to face the difficulties of the trading experience.
We envision the stock market as a place where winning and accumulating wealth is extremely difficult, and requires a large domain of the individual over himself.
First of all it is important to understand which factors have brought us to this decision to invest. Some ads seek to awaken the desire to be independent or to earn more than the boss, or an addition to your salary.
In PapuasiaInvest try to speak the truth, may not fare as well economically as our rivals, but we reiterate our primary objective to help each individual to be happy.