Bad Stock Pick #1: Grande West Transportation(BUS.V)

Grande-West

When you’re barely out of the sophomore gates of investing you will make some rookie mistakes. After selling some marijuana stock that I made a nice profit on I became a little loose with my money. A few guys on BNN had no negative things to say about this one stock that had dropped 30% in recent months.

Without any good reason other than listening to so-called experts in suits, I bought stock in Grande West Transportation, a bus manufacturer in Canada. From $2.15 it kept falling steadily and is now trading at $0.95.

Lessons

  • Be careful with listening to the ‘experts.’
  • If a stock is falling for unknown reasons especially a largely unknown stock then there might be something you don’t know.

The company knew that it would not build and sell the number of buses that they said they would. Of course, people on the inside and close to the inside knew about this long before it would be made public. This was probably why the stock was falling.

It’s not a lost cause but the stock now needs to more than double for me to get back to even.

My Personal Opinion

  • Don’t bother with these small caps when you don’t have a good enough understanding of the industry.
  • Ask yourself before you buy a stock how you will feel if the stock goes down and you have to hold it.
  • Before buying any stock would you tell your friends and family to buy it?

 

Screenshot 2018-10-25 at 8.59.32 PM

 

2 thoughts on “Bad Stock Pick #1: Grande West Transportation(BUS.V)”

  1. Agreed. however this is a long play in my mind. They are doing all the right things but have had some barriers put in front of them. The uncertainty of new free trade agreement being the main one. Now that it is resolved it should prompt more buyers to step up. I also believe there are some negatives perceived due to the fact the buses are partially made in China. I am looking forward to the next year or two for the playoff!

    1. Hi Dave. The China trade war issue with America isn’t helping and the overall weak market conditions as well. Also, the bus industry isn’t very sexy. I sold some of the stock when it bounced to $1.80. I should have just sold it all and took the small loss. Their buses look good though!

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