Share tips thread

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DonkeyApple

55,180 posts

169 months

Wednesday 22nd April 2015
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walm said:
And IG is down.
What did you guys do!!!!?
It's only down for some. Looks like an individual server issue.

OtherBusiness

838 posts

142 months

Wednesday 22nd April 2015
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RoadRunner220

945 posts

193 months

Wednesday 22nd April 2015
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DoubleSix said:
Kitchen sinking.
Yep.

I was hoping their share price would plummet so I could pick some up, can see their next financial year being a good one.

Ukipdefect

109 posts

108 months

Thursday 23rd April 2015
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Buy tesco?

Zippee

13,459 posts

234 months

Thursday 23rd April 2015
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RoadRunner220 said:
Yep.

I was hoping their share price would plummet so I could pick some up, can see their next financial year being a good one.
That's my hope, I bought a couple of grands worth today as a punt. They've gotten all the bad news out the way and whichever way you look at it their sales are still mahoosive.
Hopefully the management changes and no more really bad news will see a positive affect upon the price.

I'm also quite happy with my Taylor Wimpey shares at present, up about 12% for me so far with a nice interim div coming next month as well smile
Just got to watch them in case interest rates go up as it may affect sales.

DonkeyApple

55,180 posts

169 months

Thursday 23rd April 2015
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Ukipdefect said:
Buy tesco?
The problem with TSCO is that for more than a decade it was the market darling and a core holding in every portfolio. Now no one can pitch the concept of holding that stock to a client and no one would take the risk of having it in there so there will no longer be the month in, month out investment buying that underpinned it for years.

Plus, why buy downside risk when you can wait until it has proven to have halted its deaperate decline?

Having a punt is one thing but not much logic in holding long term as part of a portfolio.

g4ry13

16,959 posts

255 months

Thursday 23rd April 2015
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DonkeyApple said:
The problem with TSCO is that for more than a decade it was the market darling and a core holding in every portfolio. Now no one can pitch the concept of holding that stock to a client and no one would take the risk of having it in there so there will no longer be the month in, month out investment buying that underpinned it for years.

Plus, why buy downside risk when you can wait until it has proven to have halted its deaperate decline?

Having a punt is one thing but not much logic in holding long term as part of a portfolio.
Risk is good. Ideally you can get in when things look absolutely dreadful and like they're not going to improve. So long as they don't go to the wall you're quids in cool

For clarity: I do happen to hold some myself, I got into them after stuff started to hit the fan.

Dave350

359 posts

118 months

Friday 24th April 2015
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Taylor Wimpey up over 20p since I bought them and they hit 170p today. 7.6p div next month and it will go all the way to £2 comfortably in the next 6 months in my opinion.

Zippee

13,459 posts

234 months

Friday 24th April 2015
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Dave350 said:
Taylor Wimpey up over 20p since I bought them and they hit 170p today. 7.6p div next month and it will go all the way to £2 comfortably in the next 6 months in my opinion.
Hopefully smile
I'm up almost 15% on them, unfortunately only on a 3k investment. The div along with the capital growth so far I'm pretty pleased with.

DoubleSix

11,710 posts

176 months

Friday 24th April 2015
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DonkeyApple said:
Ukipdefect said:
Buy tesco?
The problem with TSCO is that for more than a decade it was the market darling and a core holding in every portfolio. Now no one can pitch the concept of holding that stock to a client and no one would take the risk of having it in there so there will no longer be the month in, month out investment buying that underpinned it for years.

Plus, why buy downside risk when you can wait until it has proven to have halted its deaperate decline?

Having a punt is one thing but not much logic in holding long term as part of a portfolio.
Not sure I agree.

Challengers (Aldi et al) are in their UK growth phase and enjoying taking market share but will soon enough begin to max out on that, at which point Tescos superior floorspace and incumbancy come back into play.

As for waiting until recovery is "proven" well, you know it doesn't work like that, remember just how forward looking equity markets are and by the time anything is proven the value gap will have closed.

"Buy when there is blood in the streets" - Rothschild



Edited by DoubleSix on Friday 24th April 21:40

bad company

18,545 posts

266 months

Saturday 25th April 2015
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DoubleSix said:
DonkeyApple said:
Ukipdefect said:
Buy tesco?
The problem with TSCO is that for more than a decade it was the market darling and a core holding in every portfolio. Now no one can pitch the concept of holding that stock to a client and no one would take the risk of having it in there so there will no longer be the month in, month out investment buying that underpinned it for years.

Plus, why buy downside risk when you can wait until it has proven to have halted its deaperate decline?

Having a punt is one thing but not much logic in holding long term as part of a portfolio.
Not sure I agree.

Challengers (Aldi et al) are in their UK growth phase and enjoying taking market share but will soon enough begin to max out on that, at which point Tescos superior floorspace and incumbancy come back into play.

As for waiting until recovery is "proven" well, you know it doesn't work like that, remember just how forward looking equity markets are and by the time anything is proven the value gap will have closed.

"Buy when there is blood in the streets" - Rothschild



Edited by DoubleSix on Friday 24th April 21:40
I can see both arguments and IMO Tesco is worth a punt. Don't 'put your shirt on it' tho.

matty g

231 posts

198 months

Saturday 25th April 2015
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CVSG as a medium term investment. Looking at their 3 yr share price is just growth growth growth.

Talk me out of it guys.

P.s. I'm a proper noob. However they are my largest customer.

mls678

58 posts

146 months

Sunday 26th April 2015
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Guys,

Just looking at starting my own share dealing account with a few hundred a month to invest. Looking at AJ Bell.

Any recommendations from the PH collective on a good provider with reasonable fees? Preferably one with an App.

Thanks

Matt

g4ry13

16,959 posts

255 months

Monday 27th April 2015
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Hargreaves Lansdown.

No complaints with them.

isee

3,713 posts

183 months

Monday 27th April 2015
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mls678 said:
Guys,

Just looking at starting my own share dealing account with a few hundred a month to invest. Looking at AJ Bell.

Any recommendations from the PH collective on a good provider with reasonable fees? Preferably one with an App.

Thanks

Matt
I have been using charlest stanley for a month so far. very pleased so far. not tried their app tho.

bad company

18,545 posts

266 months

Monday 27th April 2015
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g4ry13 said:
Hargreaves Lansdown.

No complaints with them.
Yes HL are very good with a great website BUT they are expensive. Take a look at Halifax share dealing.

walm

10,609 posts

202 months

Monday 27th April 2015
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DoubleSix said:
Challengers (Aldi et al) are in their UK growth phase and enjoying taking market share but will soon enough begin to max out on that, at which point Tescos superior floorspace and incumbancy come back into play.
It's going to take Aldi and Lidl until 2020 to finish doubling their store base which is their current target.
They are rolling out into "white space" i.e. a new store for them leaves their existing stores doing just as well, no cannibalisation.
So they take share 100% from the other players.
At that point, the two of them might have c.15-16% share of the market up from c.8% today.

THEN they might begin to slow.

Not sure I am prepared to wait that long...

The problem with "Tesco has lots of floorspace" argument is:
1. It's on legacy expensive rent.
2. It costs a lot to run those stores in terms of manpower. 40-50 FTEs vs. 6-7 at the discounters.
3. Scale only helps if you get a discount from your suppliers. The discounters secure a similar discount by keeping the SKU count low. So instead of having 10 ways to buy Heinz Ketchup they just have 1. They ONLY list a brand when they are one of the top 3 volume buyers in the region (yes - REGION - these guys are MASSIVE in Germany - Tesco - not so much).

So, not sure I have the balls just yet.
It was at 160p a few months ago and not a whole lot has changed since then.

DoubleSix

11,710 posts

176 months

Monday 27th April 2015
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walm said:
DoubleSix said:
Challengers (Aldi et al) are in their UK growth phase and enjoying taking market share but will soon enough begin to max out on that, at which point Tescos superior floorspace and incumbancy come back into play.
It's going to take Aldi and Lidl until 2020 to finish doubling their store base which is their current target.
They are rolling out into "white space" i.e. a new store for them leaves their existing stores doing just as well, no cannibalisation.
So they take share 100% from the other players.
At that point, the two of them might have c.15-16% share of the market up from c.8% today.

THEN they might begin to slow.

Not sure I am prepared to wait that long...

The problem with "Tesco has lots of floorspace" argument is:
1. It's on legacy expensive rent.
2. It costs a lot to run those stores in terms of manpower. 40-50 FTEs vs. 6-7 at the discounters.
3. Scale only helps if you get a discount from your suppliers. The discounters secure a similar discount by keeping the SKU count low. So instead of having 10 ways to buy Heinz Ketchup they just have 1. They ONLY list a brand when they are one of the top 3 volume buyers in the region (yes - REGION - these guys are MASSIVE in Germany - Tesco - not so much).

So, not sure I have the balls just yet.
It was at 160p a few months ago and not a whole lot has changed since then.
For the sake of clarity I'm not suggesting anyone on here rush out and buy shares at today's price - on the contrary; nothing I say here is intended as investment advice. I simply enjoy the discussion and opinions.

Now that's out of the way smile

Your rationale is sound Walm, I don't disagree that it could very easily play out like that. However, there are naturally many assumptions there; expectations of constancy if you will.

I'm sure Tesco will be looking very closely at how their competition are operating and hopefully evolve and adapt their strategy.




gregf40

1,114 posts

116 months

Monday 27th April 2015
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Seeing as most of my wealth is in Amazon shares I am a pretty happy bunny at the moment!

I did say at the end of last year we would see 400 in the next few months...and we are currently at $446.

Hope those who doubted it and mentioned going short had closed out before the last results.

walm

10,609 posts

202 months

Monday 27th April 2015
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DoubleSix said:
I'm sure Tesco will be looking very closely at how their competition are operating and hopefully evolve and adapt their strategy.
I agree absolutely.
I just find it hard to imagine what they can do exactly to help themselves.

In fairness I think they have a better chance than some of the others to compete but I see this a little like the problems HMV faced.
It is a slow structural shift and nothing management can do will stop people buying media online and in this case shifting to online shopping/discounters and reducing the time they used to spend going to do a weekly shop for everything from a big supermarket AND I think there is a long way to go before that shift is complete.
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