Shares in the current climate

97trophy

I can't see RBS shareholders every seeing a penny of their money again.

Tayus

Following developments I am currently reconsidering buying these shares! know I said I was going to by them regardless of what was said but my main reason for stating this was that I wasn't looking for advice and understand that if I wanted proffesional advice I shound see a FA.

bitterSTAR

I had been looking at purchasing shares in the mining and oil sectors for the past 2 months, and just my luck that the share price of some of the firms I was interested in went up!

Tayus

Rio Tinto may be a good buy?

mrposhman

bitterSTAR wrote: »

I had been looking at purchasing shares in the mining and oil sectors for the past 2 months, and just my luck that the share price of some of the firms I was interested in went up!

I would invest in these rather than banks. I am hoping that Lloyds raises a bit more but I may look at selling some of my shares shortly. I've already sold out of RBS and would not reconsider buying back in as this will be the first of the remaining to be nationalised.

I don't think the others will go primarily because the government need an exit strategy and by taking all private banks under public ownership would restrict this somewhat.

Oil and mining shares have fallen dramatically. Whilst you say they may have risen recently theres still a long way to go. Also, don't just look at the big caps, there are some smaller caps which have massive cash holdings yet their market cap is tiny. For example, I have recently invested in one which I may look to add more shares in as they have dropped since I bought them who have cash holdings around about 2 times market value (if not higher based on cash holdings at the mid year point) and has a net asset value of more than 3 times market cap.

Theres still some gems out there even if they don't go back to what they were, in the long run they will come good. IMO you have to be looking for at least a 2 year window before some will come good, some will be shorter, some will be much longer though.

Pssst

My on line sharedealing account shows a delayed trade for almost 34 million RBS shares to be purchased at 35 pence per go.

bitterSTAR

Pssst wrote: »

My on line sharedealing account shows a delayed trade for almost 34 million RBS shares to be purchased at 35 pence per go.

I wish I had that kind of money to waste! :P

bitterSTAR

mrposhman wrote: »

Oil and mining shares have fallen dramatically. Whilst you say they may have risen recently theres still a long way to go. Also, don't just look at the big caps, there are some smaller caps which have massive cash holdings yet their market cap is tiny. For example, I have recently invested in one which I may look to add more shares in as they have dropped since I bought them who have cash holdings around about 2 times market value (if not higher based on cash holdings at the mid year point) and has a net asset value of more than 3 times market cap.

Theres still some gems out there even if they don't go back to what they were, in the long run they will come good. IMO you have to be looking for at least a 2 year window before some will come good, some will be shorter, some will be much longer though.

I'm looking at investing within the next 2 weeks, as I have 3 free trades to use before the end of the month. However, as it's the first time I've ever invested I still haven't come to any solid conclusions - ideally I think I want to invest in 3 firms to make my investment a little balanced. I've also been reading a financial times guide to investments, to get to better grips with what I should be looking for in a company.

Pssst

I'd say invest in the essentials i.e food and utilities. Take a look at northern foods and also premier foods. Both good buys at present. they make a wide range of packaged food products . Just the kind of stuff that people fill their baskets with.

Recent broker sentiment for both companies has been strong buy to buy.

Premier foods has some debt restructuring issues but should work out fine.

mrposhman

Pssst wrote: »

I'd say invest in the essentials i.e food and utilities. Take a look at northern foods and also premier foods. Both good buys at present. they make a wide range of packaged food products . Just the kind of stuff that people fill their baskets with.

Recent broker sentiment for both companies has been strong buy to buy.

Premier foods has some debt restructuring issues but should work out fine.

I like Premier Foods too. I made a 30% profit on these when I sold earlier in the month, they've now dropped and I want to reinvest as I think they are still undervalued but have the money elsewhere, so I want to close my Lloyds shares though I'm hoping the rise in the first few days of next week (more in hope than expectation) so I can minimise my losses.

I think Rio have a large amount of debt (though may be wrong).

bitterSTAR, I'm also only a recent convert to shares (been doing it about 3 months now so hardly experienced) though for me, I read comments on sites such as www.iii.co.uk for the shares I like the look of to see what the sentiment is like. I also read the magazines shares and the investors chronicle for some tips too but utlimately I look at my own research.

You should definately look at the P/E ratios and EPS ratios but in the current climate the greatest thing you need to look for is cash.

If your looking for a long term bet, Afren seem like a good bet, it'll take time to raise the share price but they have dropped from around 27p to about 21p in around a week. I'm not sure why as there haven't been any press releases (possibly stop losses kicking in?), yet their turnover is starting to flow and they have massive cash balances. They also have a strong Net asset value (though both this and the cash balances are taken from 6 months ago based on their balance sheet as at the end of June). The broker forecasts still look quite good on www.digitallook.com though obviously these can be wrong and the share is still high risk as it doesn't pay any dividends either but it does look undervalued.

There are several big oil companies with low values at the moment. BP seems to be undervalued, though there have been reports they are going to issue lower than expected profits though apparantly a similar thing came out last year but was unfounded. I have these at £4.66 and £4.93 and am confident they will be back above £5 soon enough, plus they pay their dividend in March which helps.

Anyway, I'm no expert but they are shares I'm in at the moment. Am in a few others too so I'm not trying to boost the SP's on here by stating all the ones I'm in.