Share tips thread (Vol 2)

[gretsch-drummer]

Alongside the warning, Royal Mail opened up a shares scheme for us staff where we can invest £100 a month which will buy shares at that time/price and get 2 free shares on top every month. The scheme seems popular with the staff and if you think there's potentially ~150k RM staff which could be pumping in £100 a month, that's quite a nice extra top up for the businesses accounts.

Can't find a figure of how many staff actually signed up to the scheme though so it's guess work at the moment on investment figures.

[Nick928]

WYNN have had an intresting day today.
The gods were smiling and in all honesty it was luck that I wasn't stopped out after the recent short rally.
Certainly a happy day today

[Burwood]

gretsch-drummer said:

Alongside the warning, Royal Mail opened up a shares scheme for us staff where we can invest £100 a month which will buy shares at that time/price and get 2 free shares on top every month. The scheme seems popular with the staff and if you think there's potentially ~150k RM staff which could be pumping in £100 a month, that's quite a nice extra top up for the businesses accounts.

Can't find a figure of how many staff actually signed up to the scheme though so it's guess work at the moment on investment figures.

You seem to think that RM trouser this money. They don’t. They have to buy the shares on the open market. It’s a cost to RM being the two freebies. If you invest the £100, two free shares today are worth about £7. 7% is a decent incentive.

[HarryW]

Burwood said:

gretsch-drummer said:

Alongside the warning, Royal Mail opened up a shares scheme for us staff where we can invest £100 a month which will buy shares at that time/price and get 2 free shares on top every month. The scheme seems popular with the staff and if you think there's potentially ~150k RM staff which could be pumping in £100 a month, that's quite a nice extra top up for the businesses accounts.

Can't find a figure of how many staff actually signed up to the scheme though so it's guess work at the moment on investment figures.

You seem to think that RM trouser this money. They don’t. They have to buy the shares on the open market. It’s a cost to RM being the two freebies. If you invest the £100, two free shares today are worth about £7. 7% is a decent incentive.

Free shares are great... Mine allows you £150pm and matches your shares up to £75 of that, so effectively you get 3 for the price of 2, even better it's salary sacrifice so @40% that means you're effectively getting £225 of shares for £90... Works for me..

[Jambo85]

HarryW said:

Free shares are great... Mine allows you £150pm and matches your shares up to £75 of that, so effectively you get 3 for the price of 2, even better it's salary sacrifice so @40% that means you're effectively getting £225 of shares for £90... Works for me..

Surely if that was correct you could sell them the same day you buy them and you no longer need to worry about income tax? Not on your whole salary admittedly as it is capped but it still sounds unlikely?

[Jambo85]

Burwood said:

You seem to think that RM trouser this money. They don’t. They have to buy the shares on the open market. It’s a cost to RM being the two freebies. If you invest the £100, two free shares today are worth about £7. 7% is a decent incentive.

Company share schemes make my brain hurt. What you say above seems logical but my employer runs a similar scheme and my generally negative view of them combined with curious balance sheet entries make me fairly certain that it isn't entirely altruistic.

Back to RM - Page 110 of this:
https://www.royalmailgroup.com/media/10169/royal-m...

..shows a cost of £53m for purchasing own shares to 'give' to staff, but £100m to the good for employee free shares issue. Does that suggest that the latter are new shares, issued by holding onto £100m of staff's salaries? That's a nice boost to cash flow if nothing else.

[ATM]

AIM share Trakm8

They've had some turbulence in the last couple of years. Recent news from the company themselves about gearing up for large contract wins are starting to look like a reality now.

They supply the black boxes for Direct Line Insurance. They recently announced a win with an even larger insurance company which didn't even move the share price.

They now appear to be supplying EE with their box appearing on the EE website yesterday.

Loads more to say but won't bore you. I'm expecting the share price to double or triple in the next 12 months so I'm balls deep.

[HarryW]

Jambo85 said:

HarryW said:

Free shares are great... Mine allows you £150pm and matches your shares up to £75 of that, so effectively you get 3 for the price of 2, even better it's salary sacrifice so @40% that means you're effectively getting £225 of shares for £90... Works for me..

Surely if that was correct you could sell them the same day you buy them and you no longer need to worry about income tax? Not on your whole salary admittedly as it is capped but it still sounds unlikely?

You have to hold them for 5 years......

[Burwood]

Jambo85 said:

Burwood said:

You seem to think that RM trouser this money. They don’t. They have to buy the shares on the open market. It’s a cost to RM being the two freebies. If you invest the £100, two free shares today are worth about £7. 7% is a decent incentive.

Company share schemes make my brain hurt. What you say above seems logical but my employer runs a similar scheme and my generally negative view of them combined with curious balance sheet entries make me fairly certain that it isn't entirely altruistic.

Back to RM - Page 110 of this:
https://www.royalmailgroup.com/media/10169/royal-m...

..shows a cost of £53m for purchasing own shares to 'give' to staff, but £100m to the good for employee free shares issue. Does that suggest that the latter are new shares, issued by holding onto £100m of staff's salaries? That's a nice boost to cash flow if nothing else.

The 100m and 53m are simply mismatched timing. The 100m is the cash receipt of new shares. They did issue new shares and received cash from employees. The free shares vest over at least 3 years so the 53m charge is vested shares from prior years. The shares relating to the 100m will be shown over several future years.

[Badda]

ATM said:

AIM share Trakm8

They've had some turbulence in the last couple of years. Recent news from the company themselves about gearing up for large contract wins are starting to look like a reality now.

They supply the black boxes for Direct Line Insurance. They recently announced a win with an even larger insurance company which didn't even move the share price.

They now appear to be supplying EE with their box appearing on the EE website yesterday.

Loads more to say but won't bore you. I'm expecting the share price to double or triple in the next 12 months so I'm balls deep.

Their performance over the last 12 months looks like a pretty solid trend. Brave!

[Jonboy_t]

Badda said:

ATM said:

AIM share Trakm8

They've had some turbulence in the last couple of years. Recent news from the company themselves about gearing up for large contract wins are starting to look like a reality now.

They supply the black boxes for Direct Line Insurance. They recently announced a win with an even larger insurance company which didn't even move the share price.

They now appear to be supplying EE with their box appearing on the EE website yesterday.

Loads more to say but won't bore you. I'm expecting the share price to double or triple in the next 12 months so I'm balls deep.

Their performance over the last 12 months looks like a pretty solid trend. Brave!

Sounds very Quindell to me...!

[limpsfield]

Badda said:

ATM said:

AIM share Trakm8

They've had some turbulence in the last couple of years. Recent news from the company themselves about gearing up for large contract wins are starting to look like a reality now.

They supply the black boxes for Direct Line Insurance. They recently announced a win with an even larger insurance company which didn't even move the share price.

They now appear to be supplying EE with their box appearing on the EE website yesterday.

Loads more to say but won't bore you. I'm expecting the share price to double or triple in the next 12 months so I'm balls deep.

Their performance over the last 12 months looks like a pretty solid trend. Brave!

Up 4.5% this morning but down 80% last three years.


Here's September's update:

Trakm8 Holdings PLC (TRAK.LN) said Wednesday that performance for the first five months of fiscal 2019 has been below that of the year-earlier period, but it confirmed that its full-year outlook is in line with expectations...However, the company is confident that new contracts to be awarded, a resumption of volume shipments to a large customer and increased momentum in its fleet-management activities will drive additional revenue in the second half, it said.


Given the share price performance so far, investors don't seem that convinced but will keep an eye on it.

[ATM]

limpsfield said:

Badda said:

ATM said:

AIM share Trakm8

They've had some turbulence in the last couple of years. Recent news from the company themselves about gearing up for large contract wins are starting to look like a reality now.

They supply the black boxes for Direct Line Insurance. They recently announced a win with an even larger insurance company which didn't even move the share price.

They now appear to be supplying EE with their box appearing on the EE website yesterday.

Loads more to say but won't bore you. I'm expecting the share price to double or triple in the next 12 months so I'm balls deep.

Their performance over the last 12 months looks like a pretty solid trend. Brave!

Up 4.5% this morning but down 80% last three years.


Here's September's update:

Trakm8 Holdings PLC (TRAK.LN) said Wednesday that performance for the first five months of fiscal 2019 has been below that of the year-earlier period, but it confirmed that its full-year outlook is in line with expectations...However, the company is confident that new contracts to be awarded, a resumption of volume shipments to a large customer and increased momentum in its fleet-management activities will drive additional revenue in the second half, it said.


Given the share price performance so far, investors don't seem that convinced but will keep an eye on it.

Their share price rocketed a while back to nearly 4 quid. Clearly this was a bit of a bubble and then it came back down. Then some share pundit guy started to question their financials and he turned out to be right. The price dropped 70p in one day. It has been trending down ever since. They had some cash flow problem last year I think and the directors coughed up and bought a placing at about 67p. It then wobbled around as they were not showing much profit. They are now showing a profit and this has been rising steadily. They got a new CFO about a year ago as the last one had clearly F'ed up as their financials were incorrect. This new CFO bought £30 grand of shares at about 105p almost immediately - it's now 70p. They have been spending on bigger premises and gearing up for larger volumes with talk of new clients but no one knew who and by how much. Now read my original post above again and you get an idea.

Their price now is low given their current volume. If their volume doubles or triple then the share price will have to do the same - but remember the money has been spent already getting ready for the higher volume so profit should be higher as volume ramps. It could easily do better obviously but that's probably less than realistic.

I see no downside here and a lot of upside.

[Badda]

ATM said:

This new CFO bought £30 grand of shares at about 105p almost immediately - it's now 70p.

Sorry but that made me laugh!

[limpsfield]

Badda said:

ATM said:

This new CFO bought £30 grand of shares at about 105p almost immediately - it's now 70p.

Sorry but that made me laugh!

Good job he doesn't work with numbers

[ATM]

limpsfield said:

Badda said:

ATM said:

This new CFO bought £30 grand of shares at about 105p almost immediately - it's now 70p.

Sorry but that made me laugh!

Good job he doesn't work with numbers

He also has 475000 share options at a strike price of 137.5p

https://www.londonstockexchange.com/exchange/news/...

[elanfan]

fellatthefirst said:

Aviva share price has been in steady decline for a while though...

and yet they are now £4.33 up 17p or 4% on my tip price in just 2 weeks!

Edited by elanfan on Saturday 10th November 18:06

[menousername]

Apologies if asked already

Investing in ETFs via a retail ISA... what is the potential downside (ignoring liquidation of the provider, currency swings etc) is it just the proportionate loss of the investment?

No requirement to post margin or anything like that?

Invest say 2k in a prticualar ETF that loses 50% and you are down 1k - eg. much like a single share investment?

[Burwood]

menousername said:

Apologies if asked already

Investing in ETFs via a retail ISA... what is the potential downside (ignoring liquidation of the provider, currency swings etc) is it just the proportionate loss of the investment?

No requirement to post margin or anything like that?

Invest say 2k in a prticualar ETF that loses 50% and you are down 1k - eg. much like a single share investment?

Yes, it will be almost identical (less fees) to the underlying basket of securities. Just one point to add. Some underlying investments may be illiquid such as property or private shareholding’s but if it’s listed equities the price is marked daily.

[menousername]

Burwood said:

Yes, it will be almost identical (less fees) to the underlying basket of securities. Just one point to add. Some underlying investments may be illiquid such as property or private shareholding’s but if it’s listed equities the price is marked daily.

Thanks

My ISA is spread across the usual fund names and was (until recently at least) generating decent stable low returns- nothing exciting but steady

I do not want to put too much more at risk but what I am looking to do is take One or two small punts, for want of a better word, where I am prepared to lose a few hundred if it goes wrong.

I want to know that the max potential downside is the value I put in and no more- eg. there is no potential spiralling of loss beyond the inital investment

Also all the ETFs i fancy seem to be fully invested / collateralised but synthetic via swaps