Share tips thread (Vol 2)

[emicen]

egomeister said:

bad company said:

g4ry13 said:

The price of 121 was probably agreed a few months ago. The market has just moved to equal it.

That’s what I thought. It only came through today and I thought I just might have missed something. Think I’ll pass this time.

The raise was annouced on the 21st, and only at 1.2% discount to the closing price on the 20th, so it seems quite keenly supported.

I am also entitled to this offer, but reading the documentation, it became a hard pass at the 4th sentence, “subscriptions should be for a minimum of 1000 shares and in multiples of 100 thereafter.”

I like the stock, but I don’t 4 digit extension like it.

[bad company]

Anyone have a view on M&G? As far as I can see the yield is around 10% and well covered which looks too good to be true.

[K12beano]

bad company said:

Anyone have a view on M&G? As far as I can see the yield is around 10% and well covered which looks too good to be true.

Yes - owned it since the Prudential split and it does indeed have and seem to be a high yield, but to an extent a sustainable one I believe.

Going to keep as a long term within my little “Income Corner” - primarily because I cannot see other companies which you might consider “solid” (certainly not oils or banks, these days) with potential over a reasonable timescale.

And at that sort of yield, you can put up with a little volatility. I’m down just shy of 3% since holding from inception, but it never was going to be a growth stock anyway; and what’s 3% if the yield is multiple that?

YMMV, DYOD (do your own digging), etc, etc....

[Brother D]

Small play (gamble) with $SNDL last week which is up +20% atm from Friday's close, however took a decent hit with $tsla which makes up a large part of the current portfolio...

A while back I took another gamble on $DNRRW which in a prior incarnation went to -99% loss, however I did another (chasing-loss) bet which is up 140% overall and up 12% today so back to a small profit overall.

YTD 17.3%
1YR 177.9%

[xeny]

g4ry13 said:

Without going into my finances too much, my portfolio does not generally yield £2k in dividends / year. With the "special dividend" I will be exceeding that £2k allowance by some margin. Whereas if the price increases then at least I have the CGT allowance and scope to write off previous losses against the gain. From a tax perspective: it's a bad deal for me.

yes, I'd almost always prefer capital gains to income. You can also do more to juggle when you generate the gain from capital while dividend income comes on a timetable.

[g4ry13]

xeny said:

g4ry13 said:

Without going into my finances too much, my portfolio does not generally yield £2k in dividends / year. With the "special dividend" I will be exceeding that £2k allowance by some margin. Whereas if the price increases then at least I have the CGT allowance and scope to write off previous losses against the gain. From a tax perspective: it's a bad deal for me.

yes, I'd almost always prefer capital gains to income. You can also do more to juggle when you generate the gain from capital while dividend income comes on a timetable.

My main issue is let's say I bought Tesco before the accounting scandal and also after to lower my cost. As a hypothetical: My average price is about £2.50 and I hold 5000 shares

Current price is £2.42

Have I made a profit? No, i'm losing 8p/share and not eligible to pay capital gains on my holdings - in fact, if I sell at a loss then I can write it off against future gains.

I get paid 50.93p dividend on my 5000 shares so I end up with £2.5k into my account which i'm now eligible to pay tax on as I exceed the dividend allowance. I've gone from a position of not having to pay tax on my holding to then paying tax as a result of it.

It's not a great deal for me (yeah, yeah - first world problems) but the offer is not "free money".

[Greshamst]

g4ry13 said:

My main issue is let's say I bought Tesco before the accounting scandal and also after to lower my cost. As a hypothetical: My average price is about £2.50 and I hold 5000 shares

Current price is £2.42

Have I made a profit? No, i'm losing 8p/share and not eligible to pay capital gains on my holdings - in fact, if I sell at a loss then I can write it off against future gains.

I get paid 50.93p dividend on my 5000 shares so I end up with £2.5k into my account which i'm now eligible to pay tax on as I exceed the dividend allowance. I've gone from a position of not having to pay tax on my holding to then paying tax as a result of it.

It's not a great deal for me (yeah, yeah - first world problems) but the offer is not "free money".

I’ve got a gifthorse here if you want to check it’s teeth

[g4ry13]

Greshamst said:

g4ry13 said:

My main issue is let's say I bought Tesco before the accounting scandal and also after to lower my cost. As a hypothetical: My average price is about £2.50 and I hold 5000 shares

Current price is £2.42

Have I made a profit? No, i'm losing 8p/share and not eligible to pay capital gains on my holdings - in fact, if I sell at a loss then I can write it off against future gains.

I get paid 50.93p dividend on my 5000 shares so I end up with £2.5k into my account which i'm now eligible to pay tax on as I exceed the dividend allowance. I've gone from a position of not having to pay tax on my holding to then paying tax as a result of it.

It's not a great deal for me (yeah, yeah - first world problems) but the offer is not "free money".

I’ve got a gifthorse here if you want to check it’s teeth

I also lose 4 shares for every 19 I have in the process!

Not sure why you can't wrap your mind that it's not free money and it's not a good deal for holders.

[Mr Overheads]

p1stonhead said:

Burwood said:

p1stonhead said:

Gargamel said:

Peak GME madness

https://www.reddit.com/r/wallstreetbets/comments/l...

Inspiring to hear grown ass Wall Streeters complaining about a rigged game.

Fifty million on $50k.

Astounding.

Is that what someone claims to have made? I'm not believing that. You'd need derivatives (call options) to achieve that and the flat isn't big enough. Some of the calls have moved from 5 cents to $205. 4000X (bags) but as said there isn't enough available. It's off $60 after hours. It is amusing that a few bankers are demanding they halt trading on the stock. Mental all the same.

He bought his calls 18 months ago not just the other day. He’s apparently the guy who actually saw value in this long ago that everyone followed recently. It’s all documented on Reddit as far as I can tell.

He’s posted daily for months with his price rises.

The last week though I think he’s gone from about 5m to over 50m depending on where his calls were.

I hope he cash's out soon for his sake. However as soon as he cashes out the price will crash when he announces that he has.

[bad company]

g4ry13 said:

I also lose 4 shares for every 19 I have in the process!

Not sure why you can't wrap your mind that it's not free money and it's not a good deal for holders.

You gain a dividend and the new shares should be the same value as the previous holding.

[g4ry13]

bad company said:

g4ry13 said:

I also lose 4 shares for every 19 I have in the process!

Not sure why you can't wrap your mind that it's not free money and it's not a good deal for holders.

You gain a dividend and the new shares should be the same value as the previous holding.

In the example of 5,000 shares at a price of £2.40:

I gain a dividend of £2546.50 (5000*50.93p)

My shares are reduced (Tesco will reduce the number of shares every shareholder owns. Shareholders will get 15 new shares for every 19 shares held) and i'm left holding 3947 shares at £2.40.share. Equating to a holding of £9473.68

£9473.68 + £2546.50 = £12,020.18

vs not having the dividend: 5000*£2.40 = £12,000

So with the dividend it's a £20 profit. But then the dividend is going to be taxable so really it's a dud.

[Burwood]

Mr Overheads said:

p1stonhead said:

Burwood said:

p1stonhead said:

Gargamel said:

Peak GME madness

https://www.reddit.com/r/wallstreetbets/comments/l...

Inspiring to hear grown ass Wall Streeters complaining about a rigged game.

Fifty million on $50k.

Astounding.

Is that what someone claims to have made? I'm not believing that. You'd need derivatives (call options) to achieve that and the flat isn't big enough. Some of the calls have moved from 5 cents to $205. 4000X (bags) but as said there isn't enough available. It's off $60 after hours. It is amusing that a few bankers are demanding they halt trading on the stock. Mental all the same.

He bought his calls 18 months ago not just the other day. He’s apparently the guy who actually saw value in this long ago that everyone followed recently. It’s all documented on Reddit as far as I can tell.

He’s posted daily for months with his price rises.

The last week though I think he’s gone from about 5m to over 50m depending on where his calls were.

I hope he cash's out soon for his sake. However as soon as he cashes out the price will crash when he announces that he has.

If you look at the detail he was sensible enough to cash out about $14M (cash) and as of last week held 50k shares and 5000 option contacts(50k shares). The non cash holdings have lost 16M in the past week if he still holds. total value today 31.5M down from 47M. Not bad for a 30k investment. You can see it unravelling but i suspect it's not over yet.

[Jambo85]

g4ry13 said:

bad company said:

g4ry13 said:

I also lose 4 shares for every 19 I have in the process!

Not sure why you can't wrap your mind that it's not free money and it's not a good deal for holders.

You gain a dividend and the new shares should be the same value as the previous holding.

In the example of 5,000 shares at a price of £2.40:

I gain a dividend of £2546.50 (5000*50.93p)

My shares are reduced (Tesco will reduce the number of shares every shareholder owns. Shareholders will get 15 new shares for every 19 shares held) and i'm left holding 3947 shares at £2.40.share. Equating to a holding of £9473.68

£9473.68 + £2546.50 = £12,020.18

vs not having the dividend: 5000*£2.40 = £12,000

So with the dividend it's a £20 profit. But then the dividend is going to be taxable so really it's a dud.

Is the thinking not that the shares should be revalued by the market when there are fewer of them in circulation, retaining market cap more or less constant?

[ATM]

Burwood said:

Mr Overheads said:

p1stonhead said:

Burwood said:

p1stonhead said:

Gargamel said:

Peak GME madness

https://www.reddit.com/r/wallstreetbets/comments/l...

Inspiring to hear grown ass Wall Streeters complaining about a rigged game.

Fifty million on $50k.

Astounding.

Is that what someone claims to have made? I'm not believing that. You'd need derivatives (call options) to achieve that and the flat isn't big enough. Some of the calls have moved from 5 cents to $205. 4000X (bags) but as said there isn't enough available. It's off $60 after hours. It is amusing that a few bankers are demanding they halt trading on the stock. Mental all the same.

He bought his calls 18 months ago not just the other day. He’s apparently the guy who actually saw value in this long ago that everyone followed recently. It’s all documented on Reddit as far as I can tell.

He’s posted daily for months with his price rises.

The last week though I think he’s gone from about 5m to over 50m depending on where his calls were.

I hope he cash's out soon for his sake. However as soon as he cashes out the price will crash when he announces that he has.

If you look at the detail he was sensible enough to cash out about $14M (cash) and as of last week held 50k shares and 5000 option contacts(50k shares). The non cash holdings have lost 16M in the past week if he still holds. total value today 31.5M down from 47M. Not bad for a 30k investment. You can see it unravelling but i suspect it's not over yet.

He could have walked away with $50m. Who here honestly believes that $50m isn't enough. I'm sure most of us could live very very happily with $50m. So I'm not sure I get this guy. I mean he invested $50k for a start which is a reasonable amount of money to me. Is this a reasonable amount of money to him?

[Greshamst]

Jambo85 said:

g4ry13 said:

bad company said:

g4ry13 said:

I also lose 4 shares for every 19 I have in the process!

Not sure why you can't wrap your mind that it's not free money and it's not a good deal for holders.

You gain a dividend and the new shares should be the same value as the previous holding.

In the example of 5,000 shares at a price of £2.40:

I gain a dividend of £2546.50 (5000*50.93p)

My shares are reduced (Tesco will reduce the number of shares every shareholder owns. Shareholders will get 15 new shares for every 19 shares held) and i'm left holding 3947 shares at £2.40.share. Equating to a holding of £9473.68

£9473.68 + £2546.50 = £12,020.18

vs not having the dividend: 5000*£2.40 = £12,000

So with the dividend it's a £20 profit. But then the dividend is going to be taxable so really it's a dud.

Is the thinking not that the shares should be revalued by the market when there are fewer of them in circulation, retaining market cap more or less constant?

Yes, if there are fewer shares in circulation, those shares should then increase in value to more than £2.40

[Yidwann]

Gamestop is still flapping around like mad if you can get your trades in and out quickly and watch it like a hawk!

[bad company]

Jambo85 said:

g4ry13 said:

bad company said:

g4ry13 said:

I also lose 4 shares for every 19 I have in the process!

Not sure why you can't wrap your mind that it's not free money and it's not a good deal for holders.

You gain a dividend and the new shares should be the same value as the previous holding.

In the example of 5,000 shares at a price of £2.40:

I gain a dividend of £2546.50 (5000*50.93p)

My shares are reduced (Tesco will reduce the number of shares every shareholder owns. Shareholders will get 15 new shares for every 19 shares held) and i'm left holding 3947 shares at £2.40.share. Equating to a holding of £9473.68

£9473.68 + £2546.50 = £12,020.18

vs not having the dividend: 5000*£2.40 = £12,000

So with the dividend it's a £20 profit. But then the dividend is going to be taxable so really it's a dud.

Is the thinking not that the shares should be revalued by the market when there are fewer of them in circulation, retaining market cap more or less constant?

This. ^^^^^^^^^^

[K12beano]

Anybody have thoughts on Cellular Goods, probably announcing plans to float on LSE...?....

[NRS]

ATM said:

He could have walked away with $50m. Who here honestly believes that $50m isn't enough. I'm sure most of us could live very very happily with $50m. So I'm not sure I get this guy. I mean he invested $50k for a start which is a reasonable amount of money to me. Is this a reasonable amount of money to him?

The reality is most of us who would think like that would have sold it on the way up ages ago though. We'd have seen our 50k become say 1 million and cashed out (that said, maybe here it jumped too quick to do that, not sure). And easy to say he should have cashed out at at 50 million but there was no way to know that is the top (can't see it going back up but who knows). Only hindsight says 50 million was the point to sell so far.

[Burwood]

NRS said:

ATM said:

He could have walked away with $50m. Who here honestly believes that $50m isn't enough. I'm sure most of us could live very very happily with $50m. So I'm not sure I get this guy. I mean he invested $50k for a start which is a reasonable amount of money to me. Is this a reasonable amount of money to him?

The reality is most of us who would think like that would have sold it on the way up ages ago though. We'd have seen our 50k become say 1 million and cashed out (that said, maybe here it jumped too quick to do that, not sure). And easy to say he should have cashed out at at 50 million but there was no way to know that is the top (can't see it going back up but who knows). Only hindsight says 50 million was the point to sell so far.

True, it did move up too quickly to make a quick call but it was obvious from the volatility and the reversal that it was likely to tank. If he was smart he cashed in most of them. I disagree that picking the top is the strategy. At it's peak he had 4000X his investment. A 1 in a billion chance. You thank your good luck for this once in a lifetime gain and cash in a material chunk .