Tom Scollon

I will give you a few codes of stocks that I think that will become history in time.
I will let you do your own homework on them.
Analysis on these stocks will show why you probably don’t want to have these in your portfolios...
It's not so tough to work it out yourself.
I will choose two; the last part of your homework is to suggest reasons why I choose these two.
My short list of ouch stocks is:
Harvey Norman (HVN): Daily Line Chart
Not a chart Gerry would be happy about and the monthly is even more painful:
Harvey Norman (HVN): Monthly Line Chart
What happened?
I have not followed the fundamentals and micro economics of specific companies/stocks for many years, but when I hear so much trumpeting, it sends alarm bells ringing for me.

I have been hearing much trumpeting about what Amazon will or will not do and how it will get wiped out.

Amazon is real and now you can even buy online your fridge and dishwasher and TV and … and … and. Even a tiny house!
You can research online the facts and not have to put up with rubbish you are told in-store. Sure, your grandmother may not be ordering online but she is not the growth market.
Retail as we have known it is dead.
This is a classic example of paradigm change. These are sunset industries. I would be clearing my money out of such companies if I had such stocks.
Myer - which I have written about several times over the last couple of years - is another classic example.

Let’s look at PMP:

PMP Ord (PMP): Daily Line Chart
PMP Ord (PMP): Monthly Line Chart

Yes, sad pics.

I would hang my head in shame had I presided over the leadership or management of these doomed companies.
PMP was and is a print company, even if it does some digital work.
No paradigm changes over the decades.
It has many kinfolk companies/competitors, printing stuff that we are just not interested in and which litter our front lawns and clog our letter boxes. Glossy colour catalogues.
How incredibly out of tune is this – cutting down trees, to produce pollution and if you are a shareholder also burning your money to boot.
Get out and give them the message by walking with your money. Well most of you have been doing just that. As if they needed louder messages.
So, when you think diversification in your portfolio you should take a good hard look at the future relevance of the pursuit of the companies you invest in.
Simply ask yourself 'Do they have a future?'
If not, look over the horizon for a better place for your hard-earned dollars.

Enjoy the ride

Tom Scollon