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One of the good things about stock prices is that they can get cars when good news comes out.
However, that equates to the patience that investors often need. Sometimes businesses with low ratings sit forgotten and neglected for years.
In addition, there is always the risk that an already cheap stock will continue to get cheaper. So you may end up holding stocks that go down for days, weeks and even years.
Sometimes it pays to hold on and wait
It’s enough to make value investors cry for their beer. But the waiting game can be worth it. An old stock market adage goes like this: “The patient’s money usually wins out in the end.”
That agrees with another statement: “Feared money tends to lose.” So an investor who stops waiting or cuts losses may sell just before the stock turns. That would be another reason to cry for beer.
So investing requires skill, faith, luck and a certain attitude. Not for the faint hearted and there is the added risk of watered down ale!
However, recently it has been an eye-catching success Greencore (LSE: GNC). The company operates as an international manufacturer of snack foods, supermarket products and more.
It is not a fun business or a stimulating industry. So maybe that’s why the stock is down near its all-year low in 2023.
There was plenty of time for investors to buy the stock – and a long wait for those who bought into the end of 2022 when it started to hit the bottom.
However, finally, Greencore started issuing updates saying that trading was ahead of market expectations. Then it kept repeating the trick from time to time.
The stock took off and started to rise for a long time as earnings and depressed value improved. With the share price now close to 199p, it is almost 110% higher than it was at the start of 2024.
So that investment amount has worked for some. But what about the possibilities for 2025?
Will these zeros be next year’s heroes?
Right now, I consider several shares to be unpopular. For example, an international home improvement retailer King fish we delivered a profit warning recently and the share price fell.
However, profits seem safe for now and City analysts expect better earnings next year. However, this sector is cyclical and those analysts may be wrong leading to further weakness in the stock.
IG Design another business that was once fortunate and now has a seemingly low value. But any good news on earnings could send stocks higher again.
However, nothing is certain and one risk is that the company is one that operates in a cyclical sector.
A house builder Vistry it is also cyclical and the stock price falls during the fall. But demand for housing remains strong. So it’s easy to think that the company is having its moment in the sun again.
All three of these businesses strike me as worthy of research and consideration for investors now.
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