Tide turns to launch a wave of winners

HOLY guacamole. If you thought week one was exciting - and we know you did - week two of our race is packed to the gills with grade-A, bona fide, blow-your-socks-off thrills.

By InvestSMART · 18 Mar 2012

By InvestSMART ·
18 Mar 2012

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HOLY guacamole. If you thought week one was exciting - and we know you did - week two of our race is packed to the gills with grade-A, bona fide, blow-your-socks-off thrills.

The tide surged back in and lifted all our racing vessels. But not all ships were equally buoyant. One of last week's leaders, Pottsy, sprung a leak and drops back to fourth after managing to add a mere $44 to his pile.

The damage to the good ship Pottsy was done by the mysterious NSX. The company operates a couple of small stock exchanges, as well as markets for trading taxi licences and water rights. Who knew. Anyway, its share price cratered 21 per cent, offsetting Oil Basins, which continues its hot streak.

As Pottsy bails out his boat, translator Primrose Riordan's portfolio is looking shipshape. Primrose had one of the best returns of the week, up 3.4 per cent (against the benchmark index's 2.6 per cent) thanks to a very solid performance from all but one of her picks. She sails into second spot.

Enjoying the view in third place is animal scientist Katie Watson. Her stocks added an unmatched 4.3 per cent after Prima BioMed leapt 15 per cent, helped along handsomely by Fortescue Metals and ResMed.

Sadly, our race is now split between the "haves" and "have nots". Engineer Andrew Hutchinson had a good week but it wasn't enough to get back in the black. Andrew's pick of Paladin Energy rebounded 12 per cent but that was offset with a further slump in the price of Alliance Resources shares.

Reader Leanne Vaz will be ruing her investment in exotic explorers, after Ramelius Resources and Saracen Minerals both slumped. Chin up, Leanne. The only way from here is up (literally).

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Frequently Asked Questions about this Article…

What happened to Pottsy's portfolio this week and why did it drop?

According to the article, Pottsy’s portfolio was hit after a sharp fall in NSX shares. Pottsy only managed to add $44 for the week and dropped to fourth place after NSX’s share price cratered 21%, offsetting gains from stocks such as Oil Basins.

Why did NSX shares fall 21% and how did that affect investors?

The article notes NSX — a company that runs a couple of small stock exchanges and markets for trading taxi licences and water rights — saw its share price fall 21%. That plunge weighed on some investor portfolios (for example Pottsy’s), illustrating how a big move in a single stock can dent returns for holders of that company.

Which investors had the strongest weekly returns and how did they compare to the benchmark?

The piece highlights Primrose Riordan as having one of the best returns, up 3.4% for the week versus the benchmark index’s 2.6%, putting her into second spot. Katie Watson’s picks added 4.3% (she’s mentioned in third place), boosted notably by strong moves in specific stocks like Prima BioMed, Fortescue Metals and ResMed.

What caused Prima BioMed to jump and which stocks helped Katie Watson’s performance?

The article reports Prima BioMed leapt 15%, which was a major contributor to Katie Watson’s week — her portfolio also benefited from gains in Fortescue Metals and ResMed. The article does not give a specific reason for Prima BioMed’s jump beyond noting the price move.

How did resource and mining stocks influence portfolios this week?

Resource and mining stocks were a mixed bag: some, like Paladin Energy, rebounded (Paladin was up 12%), while others slumped — Alliance Resources fell and both Ramelius Resources and Saracen Minerals slumped for reader Leanne Vaz. Oil Basins continued a hot streak, helping offset some of the weakness elsewhere.

What does the article mean when it says the 'tide surged back' — how should everyday investors read that?

The article uses the 'tide surged back' metaphor to describe a market lift that helped many portfolios, but it also points out not every holding benefited. It’s a reminder in plain terms that market recoveries can be uneven: some stocks rise strongly while others still lag or fall.

Does the article suggest small-exchange companies like NSX are risky for retail investors?

The article doesn’t provide explicit advice, but it highlights that NSX — described as operating small stock exchanges and niche markets like taxi licences and water rights — experienced a 21% share-price crash that hurt some portfolios. That example underscores how stocks of smaller or specialised companies can move sharply.

How did individual stock moves compare to the weekly benchmark performance?

The article compares individual outcomes to the benchmark index (up 2.6%): Primrose Riordan’s picks were up 3.4% against that benchmark, Katie Watson’s holdings rose about 4.3%, while others saw swings from a 15% leap in Prima BioMed to 21% falls in NSX and slumps in several mining stocks. This illustrates that individual stock performance can differ markedly from the overall index.