Good time to stick a grand in to woolworths shares??!!

[mwg123]

If when the economic cloud blows over and these guys are still in business does now seems a good time to stick a small amount of money there way? An amount you are prepared to lose of course!

Matt

[shadowninja]

Well, let us know how you get on.



Which way is the price going?

Edited by shadowninja on Sunday 23 November 12:41

[Vixpy1]

In the world of bad ideas, this is right up there

[_Voyager_]

IMHO Woolworths are going bust, its just a matter of time.

They have an outdated product line, with a outdated business model and don't look to be changing all that much. Tesco et al are hammering them all over the place with their enormous non food range (which incidentally is where all their margin is).

Good luck with your investment.

[Plotloss]

You do realise that the board are currently hawking the business and its £400m debt to potential buyers for £1 dont you?

[shadowninja]

Plotloss said:

You do realise that the board are currently hawking the business and its £400m debt to potential buyers for £1 dont you?

That's brilliant. Clear case of DYOR before buying shares.

[jsc15]

mwg123 said:

If when the economic cloud blows over and these guys are still in business does now seems a good time to stick a small amount of money there way? An amount you are prepared to lose of course!

Matt

I thought the same when I chucked £1k at them on 11/12/06 when they were 35p

On 18/06/07 I bought another £400 at 27p, to lower my average cost

On 28/09/07 I put another £350 in at 18p, again on the basis that it reduced my average cost and they couldn't get any lower

They are now 1.43p each, and my £1750 is now worth £87.36

[shadowninja]

jsc15 said:

the basis that it reduced my average cost

Averaging down is a dangerous game to play unless you are really, really sure you're right.

I've seen people average down several times and come away with stonking profit but they have been doing it for years.

Edited by shadowninja on Sunday 23 November 16:58

[jsc15]

shadowninja said:

jsc15 said:

the basis that it reduced my average cost

Averaging down is a dangerous game to play unless you are really, really sure you're right.

You're correct but it was always with just a few hundred as opposed to another £1k so I'm chalking it up to experience. It's money I knew I could lose.

[condor]

I rather liked Alan Sugars approach a couple of weeks back....can't remember exactly what it was, but something on the lines of...
Spend a couple of million buying woolies share at 2.5p and tell everyone about it...wait till share price increases ( will do as AS just bought £2M worth and gullible investors follow suit). Share price rises to 5p, logical assumption that AS might sell half his shares he bought to realise some profit.
Price stays at approx 4p for a further week...did AS get rid of the rest of his shares and, in turn, make an even tidier profit?
Would be interesting to know if he still holds them

[shadowninja]

Fair enough. Good luck, too!

[rsstman]

fuk that.

[northandy]

jsc15 said:

mwg123 said:

If when the economic cloud blows over and these guys are still in business does now seems a good time to stick a small amount of money there way? An amount you are prepared to lose of course!

Matt

I thought the same when I chucked £1k at them on 11/12/06 when they were 35p

On 18/06/07 I bought another £400 at 27p, to lower my average cost

On 28/09/07 I put another £350 in at 18p, again on the basis that it reduced my average cost and they couldn't get any lower

They are now 1.43p each, and my £1750 is now worth £87.36

Ouch...

[pgilc1]

mwg123 said:

If when the economic cloud blows over and these guys are still in business does now seems a good time to stick a small amount of money there way? An amount you are prepared to lose of course!

Matt

Alternatively you could save on the share dealing costs, and just flush the money down the toilet?

[deevlash]

arent woolies selling all their leases?

[northandy]

A few years ago I watched Corus shares fall to a few pence, company was on its behind (we were a large customer)... I believe when they were bought out by Tata the shares were in the 80p range... a nice return on a grand that would have been !.

[stevieb]

A Few years back Invensys went down the Pan, I got £2500 worth of shares at 8p per share. Sold them 6 years later when they were back up to 110 per share! Worked out good in the end! as it helped with a deposit on a house!

But as risks go it a high risk stratergy!

[mwg123]

I will stick to my day job! Interesting stories and experiences written by a few of you! Woolworths as a brand is quite strong and if and more likely when they go bust it will be interesting to see where the name pops up again.

Matt

[JustinP1]

mwg123 said:

I will stick to my day job! Interesting stories and experiences written by a few of you! Woolworths as a brand is quite strong and if and more likely when they go bust it will be interesting to see where the name pops up again.

Matt

The brand name smatters of shops that sold everything a bit less well than the rest of their competitors.

They are getting panned in all of the sectors they sell in by competitors with a cheaper and better model.

They are worth more cut up and sold at a fire sale rather than anyone putting in the hundreds of millions needed for a complete refit and rebranding.

IMHO they are a dinosaur on their last legs. Steer clear. You could get a monkey to pick a share at random and you would have less chance of losing your money.

[shadowninja]

Tata will buy it and it will be called Voolvorths.

PS I just read of someone who recently went long on oil at $90 and close his position for £100k loss.

Edited by shadowninja on Tuesday 25th November 10:25