Ashtead (AHT) - The recovery continues

Hatto

Given that you have a large pot you only need a few % rise to make a decent return.

Im not going to bother with small caps in 06 unless their is a very convincing case...i like to look at stocks over a 100mil market cap but even then its still very risky.

When a stock reaches about 100mil...its usually a time when management has proven to the market they can do x x things and its not just hype and jam tommorow. Its usually a company thats already making a profit with a successful product. This may not apply for pharma/mining/oil stocks as they tend to get a higher valuation however this premium paid for these stocks are usually due to the good track record of management or potential.

Iv found its better to buy a few 500mil market cap stocks watch them go 20% or so and then look for the next 500mil market cap stock and do the same there. The chances of it falling without one being able to recover i.e. cut losses are small. As spreads are thin..although i cant stress strongly enough how one should ride the trend and cut losses early.

I hope 06 is not a time when you retire Hatto i have very much enjoyed your posts and hope it continues for a long time!