Question for shares experts

[blindswelledrat]

Can people suggest some undervalued shares?

Ive noticed in the in the last years volatility a lot of shares have become stupidly cheap Often for a very good reason but every so often I come across one whos value has plummeted and you can't quite tell why?
WHo's assets/profits seem to be the same as ever yets share value is a fifth of a year ago.

I guess Im asking for good long term tips on shares that logic suggests have to be worth more in the long term.

Probably a tedious repost but any suggestions gratefully accepted.

[Tony*T3]

blindswelledrat said:

Can people suggest some undervalued shares?

Ive noticed in the in the last years volatility a lot of shares have become stupidly cheap Often for a very good reason but every so often I come across one whos value has plummeted and you can't quite tell why?
WHo's assets/profits seem to be the same as ever yets share value is a fifth of a year ago.

I guess Im asking for good long term tips on shares that logic suggests have to be worth more in the long term.

Probably a tedious repost but any suggestions gratefully accepted.

if you really mean 'Long Term' then surely, banks and construction companies shares are ripe for serious profit. I'd suggest you'd need a 10 year view though.

[jesusbuiltmycar]

BAE Systems - I read that they have a £41billion worth of orders over the next few years yet their share price is still low as a result of the saudi bribes investigation...

[blindswelledrat]

Tony*T3 said:

if you really mean 'Long Term' then surely, banks and construction companies shares are ripe for serious profit. I'd suggest you'd need a 10 year view though.

Agreed, but more specific.
For example- some banks are probably a bit too risky

[CY88]

Futura Medical (FUM). They make erection-enhancing ointment (among other things) which is in its final stages of approval, and which will be incorportating into Durex branded condoms.

Honestly.

Of course, DYOR.

[AlexKP]

blindswelledrat said:

Tony*T3 said:

if you really mean 'Long Term' then surely, banks and construction companies shares are ripe for serious profit. I'd suggest you'd need a 10 year view though.

Agreed, but more specific.
For example- some banks are probably a bit too risky

And so are many construction companies - a lot of them won't survive this recession/depression.

[blindswelledrat]

CY88 said:

Futura Medical (FUM). They make erection-enhancing ointment (among other things) which is in its final stages of approval, and which will be incorportating into Durex branded condoms.

Honestly.

Of course, DYOR.

But take one like this- I can do my own investigating and be none the wiser whatsoever.
When I apply my own logic to a share then that logic proves completely wrong almost every time.
I tend to conclude things like: 'Current share price already reflects the knowledge you have' there for it is not going to get better becuase they sell it to Durex.
Or is it?

[blindswelledrat]

jesusbuiltmycar said:

BAE Systems - I read that they have a £41billion worth of orders over the next few years yet their share price is still low as a result of the saudi bribes investigation...

GOod one- Ill look into that.
But is that because something disastrous could happen as a result of that investigation?

[dirty boy]

I bought HSBC this morning if that helps?

[dirty boy]

I'm watching AVIVA

I've got my fingers crossed on GW Pharma

I'm adding to Tullow, BP and Hampson

[blindswelledrat]

dirty boy said:

I bought HSBC this morning if that helps?

Depends why

[blindswelledrat]

dirty boy said:

I'm adding to Tullow,

Funnily enough I have Heritage shares which I see as identical to having Tullow in that they share the same discoveries.

[dirty boy]

Tullow are my biggest holding by a mile.

Edited by dirty boy on Wednesday 25th February 15:46

[dirty boy]

blindswelledrat said:

dirty boy said:

I bought HSBC this morning if that helps?

Depends why

Doesn't matter, they'll either go up or down.

However

Results due Monday, lots of speculation regarding whether they will cut the dividend, and whether the write downs are as big as predicted. DYOR etc etc

Edited by dirty boy on Wednesday 25th February 15:46

[blindswelledrat]

dirty boy said:

blindswelledrat said:

dirty boy said:

I bought HSBC this morning if that helps?

Depends why

Doesn't matter, they'll either go up or down.

However

Results due Monday, lots of speculation regarding whether they will cut the dividend, and whether the write downs are as big as predicted. DYOR etc etc

AH, but that is the opposite of what I am talking about.
That is short-terms speculation and high risk.
I am talking about long term views and specifically shares that are simply undervalued because of the current climate and lack of confidence.
Maybe such a thing doesnt exist?>
Maybe I am just naive- but as an example- if you take your Tullow Oil and add up the value of all its oil reserves after approx 70% costs to produce it.
Now compare that figure to the market value of the company according to its current share price and I suspect you will find it is massively undervalued, even though oil itself is too. (so arguably doubly undervalued)
I know that is crappy fag-packet maths, but the same excercise for Heritage Oil was pretty startling.

[ShadownINja]

CY88 said:

Futura Medical (FUM). They make erection-enhancing ointment (among other things) which is in its final stages of approval, and which will be incorportating into Durex branded condoms.

Honestly.

Of course, DYOR.

I should imagine things can only go up...

[dirty boy]

blindswelledrat said:

dirty boy said:

blindswelledrat said:

dirty boy said:

I bought HSBC this morning if that helps?

Depends why

Doesn't matter, they'll either go up or down.

However

Results due Monday, lots of speculation regarding whether they will cut the dividend, and whether the write downs are as big as predicted. DYOR etc etc

AH, but that is the opposite of what I am talking about.
That is short-terms speculation and high risk.
I am talking about long term views and specifically shares that are simply undervalued because of the current climate and lack of confidence.
Maybe such a thing doesnt exist?>
Maybe I am just naive- but as an example- if you take your Tullow Oil and add up the value of all its oil reserves after approx 70% costs to produce it.
Now compare that figure to the market value of the company according to its current share price and I suspect you will find it is massively undervalued, even though oil itself is too. (so arguably doubly undervalued)
I know that is crappy fag-packet maths, but the same excercise for Heritage Oil was pretty startling.

Well, I only see a teenie weenie snippet of what goes on with banks, but IMO, what I see makes me feel more confident about HSBC.

Your fag packet maths are perfectly acceptable for oilies.

[Dr Jekyll]

I'm tempted by British Airways. Not only do airlines have a reputation for being among the first to gain value when the economy starts to pick up, you get a discount on flights for owning shares. I think it's 10% discount and you have to own at least 200 shares, which would currently cost about £280.

[gjohnsto]

blindswelledrat said:

dirty boy said:

I'm adding to Tullow,

Funnily enough I have Heritage shares which I see as identical to having Tullow in that they share the same discoveries.

Mate of mine suggested tower resources - they have exploration areas next to tullow's in Uganda and are about to start drilling next month (allegedley). shares are pretty cheap just now, and should rise if they find oil.

[cjs]

Vodafone. Good company making great profits. Have a big slice of the US market and as the £-$ is low will only benefit. Plus they are using the recession as an excuse to cut costs. Pay a good dividend yield as well.