Share tips/views

With the FTSE quite low at the moment I have taken to buying shares. I thought it might be fun to exchange views on shares you think are currrently underpriced. Of course this is all done in an environment where we are not actually giving advice, just exchanging our amateur views

So far my best buy was 'Dragon Oil' at 125p. I think it's still low even now at 150p (ish).

My worst buy was lloyds TSB at 197p 'cos it's about 170p now - but I think it'll recover with time.

Also bought up some 'Cattles' shares (ctt.L) at 38.5p - I think they are undervalued.

 

I would go for these areas

1 Debt collectors
2 Pawnbrokers
3 Insolvency advice
4 Receivers

 

Are shares actively traded on those companies?

 

I was sort of wondering that myself - there will certainly be pawnbrokers traded eg cash converters, but I expect there will be others.
The post was really advice beyond buying shares, indicating the sort of jobs, businesses that will be recession/depression proof

 

OK. Anyone offer views on public companies? With a view to share prices?

 

"Cash converters" is indeed publically traded

http://uk.finance.yahoo.com/q?s=CCVU.L

Small market capitalisation though. 31 million

 

How?

Hey Avanbuiten.

How do you trade? As in which stockbroker do you use and does it have to be in large amounts?

 

I have online banking with HSBC and all I did one day was click to apply for a trading account (Invest Direct). I can make trades online instantaneously, for any amount as far as I am aware (smallest I've done is about £95) - however the dealing fee is about £11 each trade so it doesn't make much sense to do too many small trades as you'd need a large return just to get your fee back. Now I've worked this out, I do £300 minimum trades (3-4% price rise gets me my fee back), but like I said you can do any amount as far as I know.

 

I use www.iii.co.uk. Have to send off your certificates to them first, which can take a couple of weeks, but then it's instant trading after that, at £10 per trade (IIRC) irrespective of size. I've been happy with them - which is more than I can say for my share performance

 

All the banks have taken a hit today - buy now if you can stomache the risk!!!

 

Thanks for contributing....personally I wouldn't go anywhere near companies involved with housing or household goods. But then I am looking for a good return within 6-12 months so I suppose you've got a point over the longer term (3 years +)!

 

Do any of these companies allow short selling....

Real question: do they offer a way into the derivatives market? Or does anybody have a way in to this... it's all about looking for the black swan... maybe.

 

Just Google spread betting - there are loads on companies that will allow you to do it. Personally, I find the risk to high to be doing that sort of thing.

 

The Aviva tip looks to have been a good call!

 

I am looking to profit from the volatility. If I can buy something today and sell it tomorrow after it has gone up by 10% then I consider that a good day's work.

I don't like spread betting as the potential losses are greater IMO. At least when you buy shares, even if the price moves against you there is a chance of recovery plus dividends.

I bought £300 of Barclays shares at 189p a few days ago (wish I bought at 170 though!!). They are now at 201p. They may go up even more (or fall). At some point in the next month they may reach 225p at which point I will sell.

 

I might give that a go. I just targeted the banks because they are particularly volatile in the current climate. I'm still learning....!

 

any updates ?

Has the market bottomed or is there worse to come ?

I'm in two minds as to whether to go in all guns blazing now or to hope that we get another big drop and then kick in...

Also AIG announces NEW losses today of $10bn - cant believe the market isnt diving on that...

 

Hey guys, look like my Dragon Oil tip at £1.25 was quality as it's now trading at over £3. My risky Barclays purchase worked out OK too.

My worst tip was cattles who's shares have since been suspended. Luckily I sold those before the suspension!!

My next tip is Hawk Oil (HAWK.L). I originally bought this a few months back at 27p and sold at 59p. It's now fallen to around 32p. In my view it's good to reach 40p (or higher) in the next 2 months. Be wary about holding this one too long though as when it does fall, it's pretty sudden! So remember to sell!

Please remember I am just a gambler and most of my dealing is based on intuition & behavioural finance concepts.

 

... And one week later and it's just hit 40p (33ish% profit)

 

More tips...

I'm quite low risk...
I'm long on :
BAE
URANIUM ONE (believe this is heavily underpriced)
MORGAN STANLEY
MEDIGENE
VERNALIS
QIAGEN
TOTALB (French oil company)