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Hi Daniel that's a good question. You are right I don't have a crystal ball, however I am very cautious when I go in with a large investment e.g. Vod I got in at around £1.89 with a £12.5k investment broker fee and stamp duty was around £72 and when I sell another £12.50 + £1 levy which was a total cost of £85.50 ish not looked at the exact figures. I sold at £2.087 I think that was the executed price but not checked account today which worked out o be about £1.3k profit. I did similar with gfs and BT.a over the last few weeks. The thing is I do get it wrong but buy stocks where if there is a drop then the divis can return something and ensure companies are strong, e.g I have invested I Sbry and I am still down, although hopefully I will recover losses, I have been in that stock for a few months now. My method isn't perfect and if there was massive news to shock the markets then trust me we all will be down. In terms of going out quick, I could've waited for £2.20 or £2.50 in VOD and would have made a healthy return however I do get nervous quick and like to bank a quick profit and hold cash for other opportunities, I.e just waiting for 3rd week of Jan to be over and buy some good stocks on the drop. I luckily have lost enough over time to now take a more calm approach before buying a stock, reading company statements including the CEO perspective and drill down on the cash flow statements as they can tell you a lot on how a company is managing its money. Many unfortunately do not take that much time before investing, and I would say 90% go on gut, I am now one of the 10% that goes on value, so for me 3% to 10% return per trade is fine, if the return I made so far is the only profit with no loss then I'll be happy in 2017. The other thing is it does not matter if you traded 1yr, 10yr or 30yr what's important is to find a strategy that works for you. For me I now a days only go long, I don't short and do not like that side of investing, I also do not like trying to build a long term fund, for me it's quick short profit, which helps keep me real and massage any egos I may have. The stessful part for me now adays is finding quality time to research, as I prefer spending time with family and like posting on this board as you can learn a lot from other posters to improve strategy. However I love calculating Graham numbers for ftse 100 and comparing the numbers, there are still some companies in ftse 100 that are undervalued, and if you do the due diligence then a crystal ball will. It be required.
Lol my strategy is even simpler take quick profit anything from 3% to 10% depending on how I value the stock. However the strategy will not make me millions it does make me enough to pay for some luxurys. I only have a small amount to invest around £100k and do not put in more than £15k per stock, and always have stops on at 10% to minimise losses. Normally I buy 4 companies at a time if I get 3% per share every 2-3 months it does me, and better income than getting a separate part time job.
Hi Picket, I was out of VOD today at £2.0825 but a solid profit. I was also out of GFS today see that board for my buy price just before xmas. I'm gutted about BT. A walked away too early but profit banked. It's good to hold cash also a great man once said be fearful when everyone is greedy and be greedy when everyone is fearful. At present looking at CNN greed factor people are being greedy, so we should be fearful. I am now eagerly watching ABF if it hits my drop price then I will dip in and sell before trump takes the seat, however the price target has to meet in next 2 trading days I.e tomorrow and Monday, if not then I'll avoid. Good luck with your investments this year, but don't be hast be patient wait for some big drops and do some cheeky buys. Ps I wish I was the great buffet or Ben Graham. I just love reading the intelligent investor again and again, very good book and helps you build a nice trading strategy. I think if we can mix mine, yours, jmo and jacks strategy we might find the winning formula.
Hey picket Be Heard looks quite interesting, they have £8m cash in bank and Vodafone as a customer. The only issue is not profit making. As Ben Graham states you should invest a very small amount on gambles to quench our lust for risk. I'm thinking long and hard on whether to have a small holding, will watch for now. Not invested in aim stock for a while now, but this one does wet the appetite.
At 4pm today ABF unlike other retailers signalled a potential bullish signal. The price dropped to £26.04, and the predictor suggests that if ABF drops to a price of £25.78 or below over the next 3 trading days then, there will be a bullish move upwards to £28.24. The indicator suggest that the price drop has to happen within 3 days if not then I would not suggest buying, if the drop happens after 3 days then there may be a more bearish signal on ABF. On a pure fundamental basis ABF has a decent graham score and good cash in bank with a decent strategy in place for growth.
Hi Picket good luck with DEB. I very rarely trade outside ftse 100 so cannot gauge how DEB will do. Make sure you look at their books before taking a position. This is important as if the company makes good money and will look to do so in the future then if there is a hit in sp you can stay long as it will likely recover. People are panic selling next and MKS who have cash in bank, abf also solid and later at 4pm today was the only stock showing a price buy in signal, all other stocks are still not showing a signal. I can post on abf board if anyone is interested this evening. As for vod I have 2 prices previous £2.08 and £2.20 recorded, I will be out at £2.08 cos my strategy is always to bank profit, even if it's as small as £50 after fees and taxes, as I am a cautious investor. I think 20th Jan once trump is in the Whitehorse we will start seeing a normal trading pattern.
Hopefully my £2.08 is met soon. Then I'll relax for a bit before I look to buy another stock. This week for me is a pure selling week taking profits. Hopefully the markets calm down a bit in February, that way we can start predicting more accurately, at the moment it is so hard to guess which way markets gonna swing, I have had no price indication ranges on any ftse100 this week, which is lucky as I was looking at next and m&s just before xmas as companies to go into in Jan but will be boring put feet up for now. GLA and so far vod looking good
Hi Daniel, trading the stock market is no different then buying and selling items from a shop contrary to belief. E.g if you went to buy a can of coke it cost 60p as it's a popular product and shops stock loads of it. However shops will store less Miranda drink less superior in taste then coke but will sell at the same price. If there was only the same amount of coke cans or less coke cans then Miranda then the price of coke will be higher due to more demand for that product. However as Miranda is less popular the reverse will not apply. Now as there is so many vod shares in issue and the price of a quality FTSE 100 is so low it attracts a lot of traders to speculate against it and also allows a lot of stock to be on loan for shorting purposes. The same thing happens with lloyds. People unfortunately when they invest look at the cheapest price and not quality of a company. I have successfully traded rrs and rio plenty of times, yet many do not buy those shares as they feel they need millions of pounds to trade it as their sp is so high. Vod with so many shares in issue will not go beyond the £2.50 mark, however on value and and equity holding you can just about value then at £2.50 per share if they were to sell the company today. If vod do a share buy back then you could see the sp trading above £3
Yeah normally most companies have a good run in first few days of the starting month as most pension funds invest then, so I am told. It makes sense that a lot of lower risk funds will put money into good divi stocks now. Only challenge with VOD is the amount of shares in issue is huge, means lots of day traders like playing it which moves SP up and down frequently. But fundamentals look good, also their broadband service is competitive. Just imagine A Voda Sports channel showing premier league games and buys out europa league then this will Fly
Picket, JMO, Jack, Danny et al.... hope you all had a fantastic festive period and are now ready for 2017. It's gonna be stressful and there will be moments of self doubt, but have a strong attitude, do lots of research and let's all make 2017 a prosperous one. I'm ready to gobble up new data and find those golden nuggets. GLA all in VOD there are sum who are already waiting for a nice divi. Hopefully vod results will show a huge profit and we could be flying,
Damn spoke to soon £2.289 :(.
This is brilliant news, hopefully now g4s can move upwards. This is a stock under the radar, 48 Graham score so one of the more undervalued stocks on ftse and if g4s can reduce debt to 2.5x and make £400m net profit year end we can see a nice rise to broker targets in July of £3+. Also strong divi. GLA in g4s
Is there anyone that follows G4S, interesting movement at price £2.2830 roughly 30mins ago, it has signalled a nice tick upwards, hopefully towards £2.40. Fingers crossed we need to hold £2.29 by close and we should see a nice tick up.
Hi Picket I have not had a look at he markets today, due to US closing crazy last night because of fed rate hike by Yellen. I will let this news get digested and will see if there is a price re-rate. I think if you mix chart with fundamentals then you're quite safe. VOD has solid fundamentals if your shares are fully paid then you should have nothing to worry about long or short term. When I get a chance I will see if there is any price indicators. As always have confidence be patient invest wisely and All the best.
Danielh, I get that you hold vod only, but no harm in gathering insight on why someone is buying other stocks. You can then ratify methodology to see if your stock will follow same pattern. Look at VOD and BT they follow similar patterns, if someone can see BT going up then that's good for you as VOD will follow suit, if someone sees telecoms suffering in America like AT and T then it's a sign that this will have a ripple effect impacting vod. Don't just look at company figures, you also need to research the market. remember vod made a loss last year and on that you should not buy vod, however by following the sector and seeing other companies that make losses and recover you know that vod is in a strong place for a recovery. You need this type of data and research before even thinking about buying a stock. VOD has a negative graham number, however if results meet market expectations then their graham score is 27.9 this is brilliant as 25 and below are undervalued stocks, so vod is undervalued, however a price to £2.10 rapidly brings the score up to 35 this means it could start trading at top end prices, though most ftse 100 companies are 50+. You need to research other companies, so it can help you. The good news is that a few take the time to do this for you, all you need to do is find the nuggets. E.g picket and JMO have good technical knowledge so again digest what they say to help you make a judgement. The good news is vod supply services to big blue chips who provide staff with phones so as long as those companies do well vod will always have a massive income stream. GLA in VOD. NOw I'll sleep to get up at 5am see how markets open, what a buzz.
What £4.54!!! I nearly had an heart attack, I actually sold out at £3.576, it's wise to bank profit, I agree that there will be a sell off in Jan, also the trump effect will run out of steam soon. I am hoping for £2.08 before xmas but I will exit at any price above £2.03 again taking profit and building funds ready for next year. I am still in a few stocks, RPS, SBRY and TSCO and BP. As you know SBRY and TSCO not my finest moments but recovered a lot of losses and hopefully back in profit in those in new year, I am finding it difficult to find an exit price for RPS and BP as I think oilies are having a strong run and I am getting too greedy, let's see may sell before the break before x-mas I think next Friday is last day, tempted to buy back BT next weds for divi but let's see what the magic numbers are thursday
on a non vod topic, picket did you pick up my BT.A analysis I got lucky yesterday and bought below signal price of £3.48 and it's trending as graph predicted. There will be a retrace on ex divi but looking good there with gains and a 4.85p divi. In terms of vod £2.08 is still looking good. Hopefully fed decision Thursday will help make VOD sp more predictable. Still waiting for a sub £1 signal, I hope 3300 recouped some sky losses today to cover his big short on vod :) GLA and let's party at £2.08 and get ready for next trade.
Jmo I think there's going to be a few positive moves cements in the markets to the run up to the break during Xmas. Jan 2017 will be very interesting, which will start challenging the markets again. I am watching gold from the side, especially RRS, no price signal shown yet but it tracks gold and you don't have to pay stamp duty when buying the shares. I am also going to hedge on BT charts is starting show signals that there could be a few buy in moments, however I am conscious of the ex divi date which will drop the price, £3.48 is the signal there as if hit then BT will be bullish up £3.58 then down back to £3.54 for xmas due to ex div, then back up early Jan. Just hope the £3.48 is met over this week allowing me to ge in.
Hi Picket, it does not have to stay below the price, it just has to hit it once, then hopefully it goes back up for a good finish to the week. Director buy of £50k really encouraging, I wonder if he knows something.