Buying Shares

[Who Me]

I have looked through and read a few previous posts so sorry to regular posters who are seeing the same question again !. I am looking to invest 15k across 3 companies, I dont want to buy a fund or have someone make suggestions for the shares. I know the 3 I wish to buy and have looked at using x-o.co.uk Can anyone advise if they are OK ?. Also how does it work for me to hold the share certificate and what regulates them from clearing off with your money.

If the share has previously paid a dividend would it come direct to me or to the broker.

Yes new to shares, yes I can afford to lose the money, just looking for some helpful PH advice please

[twinturboz]

No idea on X-O but there's a whole host of share dealing companies out there, stick to some of the bigger names i.e.

Barclays, Halifax, Hargreaves Lansdown etc, it's all online these days hence no need for share certificates, your shares will be held in your account and any dividend paid will be automatically paid into that account too.

[oldaudi]

You want a platform that allows you to move in and out of the shares should they rise or fall quickly. Share Certificates are things of the past, you'll hold your shares with others invested in same shares.
You can normally choose to have dividends reinvested or held as income on your account, or paid into your bank account.

I use hl.co.uk but there are plenty of other trusted platforms and you'll do it all online with nothing in the post. Open an account with one of the online platforms, pay your money in and then make the trade when you wish. You'll get a statement normally detailing the execution and you may need to keep things like that for any CGT or tax returns. Most of these platforms will have a management charge but you certainly wont find anyone issuing share certificates in the post anymore.

Edited by oldaudi on Wednesday 23 December 13:12

[Monty Python]

Almost all of the major banks have share dealing facilities - I use TSB for mine.

Bear in mind that when you buy shares you pay a dealing fee, then 0.5% stamp duty on the value of the shares, then another dealing fee when you sell them. Unless these companies show a massive increase over the time you intend to keep them then the return won't be big (if any).

[oldaudi]

I'm also interested in which 3 companies you are planning to invest in. It would appear you've not purchased shares for sometime. Interested in why you have the sudden urge to plough 15 grand across 3 companies.

Care to share where the money is going?

[Who Me]

Wouldnt want to name companies directly however its the oil and gas exploration industry. On its ar$e at the moment for sure, however a look at previous share price reached and the fact oil wont be cheap forever, I can only see these going one way over the next 3-4 years. Oil is like house prices it will always go up and down every 5-6 years and its certainly down at the moment.

[shopper150]

Who Me said:

Wouldnt want to name companies directly however its the oil and gas exploration industry. On its ar$e at the moment for sure, however a look at previous share price reached and the fact oil wont be cheap forever, I can only see these going one way over the next 3-4 years. Oil is like house prices it will always go up and down every 5-6 years and its certainly down at the moment.

Very simplistic view IMO, there is a lot more to it. I certainly don't think it's like house prices.

[Monty Python]

I've been looking at the likes of Rockhopper, who have gone downhill for the past few years, but given the latest move away from fossil fuels announced this year I can't see any of these companies investing in oil exploration because the returns just aren't there. But, as with all things like this, you pays your money and you takes your chances.

[Who Me]

shopper150 said:

Who Me said:

Wouldnt want to name companies directly however its the oil and gas exploration industry. On its ar$e at the moment for sure, however a look at previous share price reached and the fact oil wont be cheap forever, I can only see these going one way over the next 3-4 years. Oil is like house prices it will always go up and down every 5-6 years and its certainly down at the moment.

Very simplistic view IMO, there is a lot more to it. I certainly don't think it's like house prices.

Would you help me by explaining the lot more to it bit ?. Im not looking at BP or Shell type of thing The companies Im looking at dont invest in the exploration themselves more a service company who is required if you want to look for oil. Ive been in the industry for 15 years and have seen 2 slumps and also the booms. Boom and bust is a pattern in both House prices and Oil prices, check both over the last 15 years.

[twinturboz]

Who Me said:

Would you help me by explaining the lot more to it bit ?. Im not looking at BP or Shell type of thing The companies Im looking at dont invest in the exploration themselves more a service company who is required if you want to look for oil. Ive been in the industry for 15 years and have seen 2 slumps and also the booms. Boom and bust is a pattern in both House prices and Oil prices, check both over the last 15 years.

I thought you might have been looking at the tanker operators, who have had a great yr so far, most of them are up approx 20% on average through 2015. I guess the risk is are those companies your thinking of financially capable of weathering the storm until oil bounces back or will it be a case they'll have to asset strip or potentially be bankrupt by the time oil does bounce back.

[MKA29]

Who Me said:

Would you help me by explaining the lot more to it bit ?. Im not looking at BP or Shell type of thing The companies Im looking at dont invest in the exploration themselves more a service company who is required if you want to look for oil. Ive been in the industry for 15 years and have seen 2 slumps and also the booms. Boom and bust is a pattern in both House prices and Oil prices, check both over the last 15 years.

Hi

I use x-o for dealing shares and its great! Flat 5.95 transaction fee to buy and sell, orders carried out immediately, no other hidden/inactivity fees (except stamp duty on some companies) and its a really simple straightforward platform to use!

It really is the definition of a true barebones package, live stock information is available but that's as far as it goes. I'd recommend using a service like ADVFN alongside to help with stock monitoring and market tracking.

If you have a good knowledge of how the stock market works and you feel confident in how you're investing your money then I'd definitely recommend x-o. If you are new to this and would appreciate a helping hand or advice, try Hargreaves instead

[hornet]

Who Me said:

Wouldnt want to name companies directly however its the oil and gas exploration industry. On its ar$e at the moment for sure, however a look at previous share price reached and the fact oil wont be cheap forever, I can only see these going one way over the next 3-4 years. Oil is like house prices it will always go up and down every 5-6 years and its certainly down at the moment.

No offence, but that seems like a dangerously simplistic basis for putting £15k at risk. Have you done any analysis of the individual companies themselves (P/E, EPS, ROCE, current/quick ratio etc), or indeed with wider sector (e.g. PEST), or is this all just on a hunch that you're now wanting other people to reinforce?

With regard the oil price, it's certainly low compared to where it was a few years ago, but it's not unusually low over the longer term.

http://inflationdata.com/articles/charts/inflation...

Looking at the chart at the above link, I'm not convinced the current price can be said to be "on its arse" over the longer term, and I certainly don't see your 5-6 year cycle. If anything, it's reverted to a more realistic level.

Your money of course, but it seems a lot to risk on what seems to be minimal to zero actual analysis and more than a few behavioural "red flags".