Share tips thread
Discussion
Shnozz said:
Looks like all the supermarkets are taking a hammering today. Morrison and Sainsburys both 5% drop at the minute.
Funny that. What with Sainsburys issuing their Q2 sales figures and revising their full year guidance down.And then highlighting the shift to convenience stores - of which Morrisons have very few.
walm said:
Shnozz said:
Looks like all the supermarkets are taking a hammering today. Morrison and Sainsburys both 5% drop at the minute.
Funny that. What with Sainsburys issuing their Q2 sales figures and revising their full year guidance down.And then highlighting the shift to convenience stores - of which Morrisons have very few.
Esseesse said:
walm said:
Shnozz said:
Looks like all the supermarkets are taking a hammering today. Morrison and Sainsburys both 5% drop at the minute.
Funny that. What with Sainsburys issuing their Q2 sales figures and revising their full year guidance down.And then highlighting the shift to convenience stores - of which Morrisons have very few.
Apparently the trend is more to do with two shifts in consumer behaviour:
1. Online. You buy the bulk of what you want online. But you might forget something or just fancy a browse. Rather than go through a full shop at a big store (since you have already done most of it) you just "top up" at a convenience store.
2. Discounters. Once again you buy the bulk of what you want from a discounter. They don't have everything yet - particularly some branded items. So you top up.
The shift has been going on for years but Sainsburys was highlighting the fact that they saw it accelerate towards the end of their Q2 and they expect it to continue to shift.
Decided yesterday that I'd have a go at shares. Put £4.5k into tesco. Didn't think they would get any worst... I was a little wrong. Still hopeful that by xmas they will be picking themselves back up.
Toughest thing for me as a newbie investor is to not keep watching the share price on my computer screen.
Toughest thing for me as a newbie investor is to not keep watching the share price on my computer screen.
walm said:
Shnozz said:
Looks like all the supermarkets are taking a hammering today. Morrison and Sainsburys both 5% drop at the minute.
Funny that. What with Sainsburys issuing their Q2 sales figures and revising their full year guidance down.And then highlighting the shift to convenience stores - of which Morrisons have very few.
trashbat said:
That's a lot to have invested on your first go, assuming you're not awash with cash.
Have you had a practice account or similar? What are you hoping for in terms of return and timescale?
I'm not flush with cash. But I have no kids and had it sitting in a santander 123 current account earning 3%. So I decided that I would have a pop. My current job pays my bills and leaves me with extra each month easily so I don't need the money at the moment. Have you had a practice account or similar? What are you hoping for in terms of return and timescale?
I've never had a practise account, nor been interested. Just saw that the shares had tanked and can't see Tesco disappearing. Today I've done some more reading, it might be a mistake. I'll see long term. More annoyed with myself for picking the share centre. Cost me nearly £45 in fees to buy them. Anyone got any advice another company who sell shares who offer better rates?
I use The Share Centre.
I think maybe you should slow down and do some more research before committing your savings though. You've gone from a low yield but almost invincible savings product to a volatile, single business share. Admittedly you could do much worse than Tesco but it strikes me as questionable risk management. I'm less concerned about that and more about what you'll do when you get bored of that and/or make a profit or loss.
I think maybe you should slow down and do some more research before committing your savings though. You've gone from a low yield but almost invincible savings product to a volatile, single business share. Admittedly you could do much worse than Tesco but it strikes me as questionable risk management. I'm less concerned about that and more about what you'll do when you get bored of that and/or make a profit or loss.
I've been buying Tesco shares every 4 weeks for 9 years now, and I get shares as my bonus . Tesco buys them for me out of my pay since I work for them. The highest I paid for shares is £4.86, so that shows just how much the share price has gone down by. Hopefully Dave Lewis can turn Tesco around, but I'm a bit sceptical about his lack of retail experience. Mike Ashley must be convinced about Tesco being able to turn itself around, as according to a newspaper I read he placed a £43 million bet on Tesco being turned around.
paulrussell said:
Mike Ashley must be convinced about Tesco being able to turn itself around, as according to a newspaper I read he placed a £43 million bet on Tesco being turned around.
Don't read too much into it, it's simply a speculative bet much like most of us going long Tesco stock are doing. He didn't physically buy the shares either, in its simplest form it's a bet with Goldman Sachs, if the price drops below the agreed exercise price he will have to buy 23million shares from gs at a higher price. If the price is above an agreed price then GS will pay him. Also much like any investor he's had deals that haven't worked out i.e. JJB or Blacks so don't base the decision solely on that.
Edited by twinturboz on Wednesday 1st October 15:42
twinturboz said:
Don't read too much into it, it's simply a speculative bet much like most of us going long Tesco stock are doing. He didn't physically buy the shares either, in its simplest form it's a bet with Goldman Sachs, if the price drops below the agreed exercise price he will have to buy 23million shares from gs at a higher price. If the price is above an agreed price then GS will pay him.
Not quite.That’s not how puts work.
If the TSCO price is ABOVE the exercise price then GS simply pay Sports Direct a fixed premium (say £3m).
It doesn’t matter how far above, just as long as it is above.
If the price is below then indeed SPD owes GS the difference between the current price and the exercise price.
Say that exercise price was £2.00 and the put expired today then SPD would owe (£2.00-£1.80=20p) per share on 23m shares so £4.6m.
Less the premium which GS still pay.
So net SPD owe GS £1.6m.
SPD have disclosed that the maximum exposure is £43m.
So if TSCO fell to ZERO and the exercise price was £2 then SPD own GS £2x23m = £46m less the £3m premium again = £43m.
(That’s why I guessed the £2 exercise price and £3m premium.)
The press reported it as a £43m bet – which implies SPD could earn say £6m if TSCO went up c.15%.
But that’s wrong.
SPD upside from the bet is capped.
Really you could look at it as Goldman making a £43m bet AGAINST Tesco.
(Although most likely they hedged out a good chunk I would imagine.)
Edited by walm on Wednesday 1st October 18:51
paulrussell said:
I've been buying Tesco shares every 4 weeks for 9 years now, and I get shares as my bonus . Tesco buys them for me out of my pay since I work for them. The highest I paid for shares is £4.86, so that shows just how much the share price has gone down by. Hopefully Dave Lewis can turn Tesco around, but I'm a bit sceptical about his lack of retail experience. Mike Ashley must be convinced about Tesco being able to turn itself around, as according to a newspaper I read he placed a £43 million bet on Tesco being turned around.
Mike Ashley loves a flutter. Reports vary but he allegedly put down £800k/point on HBOS when he was spread betting. I've read that he lost between £129-300 million of his own money. I'd take more comfort in the Oracle of Omaha though as he rarely makes bad bets.
photosnob said:
Anyone got any advice another company who sell shares who offer better rates?
I'm with III who have a flat rate of £10 per trade. There is a quarterly fee of £20 but this is credit that can be used against trades. HL are also supposed to be decent for the small trader, their fees work out roughly similar for the low end.One other thing - if you aren't buying into a shares ISA (or NISA) then do this! It cuts any tax issues, and at the lower level the main advantage is that dividends are tax-free and will keep you outside self-assessment if you don't currently need to complete one.
But yes, as mentioned have a good read around before doing much more. The more interesting way would have been to put £1k in a few different things.
Edited by Gareth79 on Thursday 2nd October 01:36
I got rid of iii - used to be good, now they're not. No reason to be paying that quarterly fee so I transferred everything out of iii and told them where to go.
I'm with Hargreaves Lansdown now. No quarterly fee, pretty low costs and they're actually rather reasonable in terms of customer service. I complained around the time of Royal Mail IPO and they refunded me some money rather than telling me to sod off.
I'm with Hargreaves Lansdown now. No quarterly fee, pretty low costs and they're actually rather reasonable in terms of customer service. I complained around the time of Royal Mail IPO and they refunded me some money rather than telling me to sod off.
g4ry13 said:
I got rid of iii - used to be good, now they're not. No reason to be paying that quarterly fee so I transferred everything out of iii and told them where to go.
I'm with Hargreaves Lansdown now. No quarterly fee, pretty low costs and they're actually rather reasonable in terms of customer service. I complained around the time of Royal Mail IPO and they refunded me some money rather than telling me to sod off.
Does it cost much to switch? At the moment I am fine with the share centre - but I don't want to be paying those sort of fees every time I buy shares. Not do I really want to be paying a monthly or quarterly fee for shares that might be left there for years. I'm with Hargreaves Lansdown now. No quarterly fee, pretty low costs and they're actually rather reasonable in terms of customer service. I complained around the time of Royal Mail IPO and they refunded me some money rather than telling me to sod off.
photosnob said:
Does it cost much to switch? At the moment I am fine with the share centre - but I don't want to be paying those sort of fees every time I buy shares. Not do I really want to be paying a monthly or quarterly fee for shares that might be left there for years.
I've got an account with http://www.iweb-sharedealing.co.uk which is part of Halifax. Only £5 per trade, and no monthly/annual fees 
The reason I closed my previous shares account (with my bank at the time) was the account fees were costing me more than I was making on my small investments
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