Sticking it all on one CV19 deflated company
Discussion
So I've been looking around at various deflated company shares recently.
I'm late to the party, but noticed a few of interest where they dropped in price at 1st lockdown in March and have now recovered.
Some by a factor of ~3.
Hypothetically, if you bought £100k (this is PH after all) worth of shares in a single company and then sold 6 months later for £300k, how could you ensure that you received the most money back?
For example, doing this within an ISA wrapper would work but you would need to have £100k in a stocks & shares ISA with a financial organisation which would let you trade in single companies.
Are you able to do that with any of them?
Ta.
I'm late to the party, but noticed a few of interest where they dropped in price at 1st lockdown in March and have now recovered.
Some by a factor of ~3.
Hypothetically, if you bought £100k (this is PH after all) worth of shares in a single company and then sold 6 months later for £300k, how could you ensure that you received the most money back?
For example, doing this within an ISA wrapper would work but you would need to have £100k in a stocks & shares ISA with a financial organisation which would let you trade in single companies.
Are you able to do that with any of them?
Ta.
I think it's pretty common to be able to do this. You can with Hargreaves Lansdown & this is the Interactive Investor page:
https://www.ii.co.uk/shares
Of course you could look at IMs PH Recovery fund if you fancy a wild ride.
https://www.ii.co.uk/shares
Of course you could look at IMs PH Recovery fund if you fancy a wild ride.
Mr Pointy said:
I think it's pretty common to be able to do this. You can with Hargreaves Lansdown & this is the Interactive Investor page:
https://www.ii.co.uk/shares
Of course you could look at IMs PH Recovery fund if you fancy a wild ride.
Linky ? ^^^https://www.ii.co.uk/shares
Of course you could look at IMs PH Recovery fund if you fancy a wild ride.
PushedDover said:
Linky ? ^^^
Sticky at the top of the page - email Julian / Nik if you want more info.It's CV19 deflated stocks but done by people who know what they are doing.
Apart from doing this within an ISA, how else can you maximise the amount of money you get back?
If you just used money from a savings account the the return generates CGT, which is going to hurt on a £200k profit.
What about doing it through a company?
Or a SIPP?
Just interested to learn more about the options for this type of situation.
You can do it in your SIPP if you have spare allowance, £40k a year there
If you already have £100k in your ISA you can do it instantly if its a stocks n shares trading ISA, otherwise you can only get £20k in there this tax year....per person if a couple
I did both earlier this year and did well, near 3x gain on one stock that crashed in March for no real reason and the company had a market cap less than the $250M cash it had in the bank which seemed crazy to me...bought some in ISA and SIPP, and sat on really nice profits, with much more to come...hopefully
After April I also invested some in a new ISA in the IM recovery fund mentioned above, as I was looking at a more diverse way of investing in covid crashed UK companies...
If you do £40k in a SIPP (cant access until 55 though) and £20k in ISA, then that leaves £40k in a regular trading account subject to CGT. You would have to make significant gains on the £40k to use your £10k CGT allowance.
If you already have £100k in your ISA you can do it instantly if its a stocks n shares trading ISA, otherwise you can only get £20k in there this tax year....per person if a couple
I did both earlier this year and did well, near 3x gain on one stock that crashed in March for no real reason and the company had a market cap less than the $250M cash it had in the bank which seemed crazy to me...bought some in ISA and SIPP, and sat on really nice profits, with much more to come...hopefully
After April I also invested some in a new ISA in the IM recovery fund mentioned above, as I was looking at a more diverse way of investing in covid crashed UK companies...
If you do £40k in a SIPP (cant access until 55 though) and £20k in ISA, then that leaves £40k in a regular trading account subject to CGT. You would have to make significant gains on the £40k to use your £10k CGT allowance.
You're going to be waiting a lot longer than 6 months for the shares left at below trend to go back again.
They haven't for a reason, and all those that were genuinely underpriced due to market fear have shot back up again.
Saying that, i'm sure there is some real cash to be gained over a 2-3 year period, post covid and brexit adjustments.
They haven't for a reason, and all those that were genuinely underpriced due to market fear have shot back up again.
Saying that, i'm sure there is some real cash to be gained over a 2-3 year period, post covid and brexit adjustments.
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