Share tips thread (Vol 2)
Discussion
king mental. Just wondering if anyone actually uses "paid for" services like Motley Fool Pro or even some of their cheaper subscriptions?
https://www.fool.co.uk/help/which-motley-fool-serv...
Or is there other free websites that give enough tips/data/info that might be better. I understand I need to do my own research and keep on top of the news etc but would be good to be pointed in the right direction!
https://www.fool.co.uk/help/which-motley-fool-serv...
Or is there other free websites that give enough tips/data/info that might be better. I understand I need to do my own research and keep on top of the news etc but would be good to be pointed in the right direction!
R8Steve said:
bad company said:
Well you can all laugh if it goes t***s up but I bought/invested/gambled today on BP.
Bit early for that imo, i can see it down to low threes before a recovery for BP. Hope i'm proven wrong for you though.bad company said:
R8Steve said:
bad company said:
Well you can all laugh if it goes t***s up but I bought/invested/gambled today on BP.
Bit early for that imo, i can see it down to low threes before a recovery for BP. Hope i'm proven wrong for you though.Norwegian air down 70%, yes it's a heavily leveraged stock, but is it really worth that much less than it was a while ago? They dont fly to Asia and as far as I know haven't had to cancel any flights yet.
Everything perfectly normal at Gatwick right now, more signs about Corona in the kitchen at work than I've passed all the way through the airport
Everything perfectly normal at Gatwick right now, more signs about Corona in the kitchen at work than I've passed all the way through the airport
Condi said:
Norwegian air down 70%, yes it's a heavily leveraged stock, but is it really worth that much less than it was a while ago? They dont fly to Asia and as far as I know haven't had to cancel any flights yet.
Everything perfectly normal at Gatwick right now, more signs about Corona in the kitchen at work than I've passed all the way through the airport
As you said, they are heavily leveraged. Airlines are a sector with tremendous operational gearing so even a small drop in passengers can have a huge effect on the bottom line. Add in their issues with the Boeing 737 max, and I don't see a lot to like. I wouldn't touch them with a bargepole at the moment.Everything perfectly normal at Gatwick right now, more signs about Corona in the kitchen at work than I've passed all the way through the airport
I held shares in Wizz until a couple of weeks ago, which is a much stronger business but any airline is a brave hold until the effects of the virus are known.
egomeister said:
Condi said:
Norwegian air down 70%, yes it's a heavily leveraged stock, but is it really worth that much less than it was a while ago? They dont fly to Asia and as far as I know haven't had to cancel any flights yet.
Everything perfectly normal at Gatwick right now, more signs about Corona in the kitchen at work than I've passed all the way through the airport
As you said, they are heavily leveraged. Airlines are a sector with tremendous operational gearing so even a small drop in passengers can have a huge effect on the bottom line. Add in their issues with the Boeing 737 max, and I don't see a lot to like. I wouldn't touch them with a bargepole at the moment.Everything perfectly normal at Gatwick right now, more signs about Corona in the kitchen at work than I've passed all the way through the airport
I held shares in Wizz until a couple of weeks ago, which is a much stronger business but any airline is a brave hold until the effects of the virus are known.
egomeister said:
bad company said:
Thankfully I don’t have any airlines in my portfolio. I do have Carnival thought which for obvious reasons have been hammered. I’ll hold them for now for the dividend.
Is the dividend likely to be maintained though?https://www.barrons.com/articles/virus-is-a-risk-f...
Edited by bad company on Saturday 7th March 13:58
Skyedriver said:
Bought EZJ end of last week
Brave! EZJ has been heavily hit, but I can see more pain in the airline sector before things get better. Many companies are suspending work travel, and conferences are being cancelled all over the place. I can't see leisure flights faring much better. Why did you choose EZJ in particular?egomeister said:
Is the dividend likely to be maintained though?
The dividend aspect is an important one. Dividends play a very important role in the FTSE v the S&P. The S&P contains some very big hitters that are all about new world growth so it tends to have a very low yield but an index that ex divis grows much quicker (and can also come down much further). Conversely, if you look at the FTSE net the performance has been generally pretty flat, the real performance comes from reinvesting the yield. There are lots of FTSE constituents that would love to cut their divi. Many have been yielding far higher than they need to in this ultra low yield environment but none of them wanted to be the first to cut. In a bullish market the first to cut would see vast amounts of income seeking funds being reallocated away from them with no little demand from the growth fund money to dive in to replace it. So it almost certainly guaranteed a significant decline in the share price which would mean the Board would see their potential winnings plummet. They would be losing millions each in target rewards.
However, let’s say something else drove their stock price down so that they were looking at those income losses anyway then suddenly cutting the divi has no personal loss or risk. Conversely, it actually becomes a means to get back your lost millions as you can deflate the share price and renegotiate your remuneration and bonuses from the new much lower level and the company gets to keep all that dividend cash inside the business to propel the share price upwards.
And if all the other high yielding stocks are doing the same then you won’t have the same reallocation of income funds.
In short, the companies that have abnormally high yields are all desperate to cut their divis. A collective and sustained sell down removes that fear and if one cuts then you could see an massive slew of them all cutting. C19 is potentially a great excuse for these firms to do what they’ve been desperate to do for a decade.
DonkeyApple said:
egomeister said:
Is the dividend likely to be maintained though?
The dividend aspect is an important one. Dividends play a very important role in the FTSE v the S&P. The S&P contains some very big hitters that are all about new world growth so it tends to have a very low yield but an index that ex divis grows much quicker (and can also come down much further). Conversely, if you look at the FTSE net the performance has been generally pretty flat, the real performance comes from reinvesting the yield. There are lots of FTSE constituents that would love to cut their divi. Many have been yielding far higher than they need to in this ultra low yield environment but none of them wanted to be the first to cut. In a bullish market the first to cut would see vast amounts of income seeking funds being reallocated away from them with no little demand from the growth fund money to dive in to replace it. So it almost certainly guaranteed a significant decline in the share price which would mean the Board would see their potential winnings plummet. They would be losing millions each in target rewards.
However, let’s say something else drove their stock price down so that they were looking at those income losses anyway then suddenly cutting the divi has no personal loss or risk. Conversely, it actually becomes a means to get back your lost millions as you can deflate the share price and renegotiate your remuneration and bonuses from the new much lower level and the company gets to keep all that dividend cash inside the business to propel the share price upwards.
And if all the other high yielding stocks are doing the same then you won’t have the same reallocation of income funds.
In short, the companies that have abnormally high yields are all desperate to cut their divis. A collective and sustained sell down removes that fear and if one cuts then you could see an massive slew of them all cutting. C19 is potentially a great excuse for these firms to do what they’ve been desperate to do for a decade.
egomeister said:
Skyedriver said:
Bought EZJ end of last week
Brave! EZJ has been heavily hit, but I can see more pain in the airline sector before things get better. Many companies are suspending work travel, and conferences are being cancelled all over the place. I can't see leisure flights faring much better. Why did you choose EZJ in particular?Or in the case of airlines, What goes up must ....oh never mind..........
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