Share Tips for FTSE 100

Blah99

dunstonh wrote: »

(which debunks (and clarifies) the MF myth that trackers beat 9 out of 10 managed funds when in reality the FTSE100 trackers have failed to beat 9 out of 10 managed funds)

There's an article on that in this week's IC.


As for the OP, I don't believe BA is a good buy. BAE and BP are decent, I hold BAE at the moment and suggested them last October (30%-ish gain so far).

sabretoothtigger

My tip would be dont aim to buy once and hold. The lowest charge for buying shares is in a regular investment plan, from £1.50 per purchase rather then 15 normally

The downside is you only to get to decide which day of the month the shares are bought on each month. Nobody really knows the correct value of shares right now because the market is rapidly changing beneath our feet, so buying over a year vs one day seems more likely to reach a profit.

Do you want a 10% chance of making a 50% profit or a 50% chance of making a 10% profit

You should go with the latter because 10% growth every year for a decade will more then double the original amount.
Consistency will decide your eventual fortune so continual success cannot be underestimated in its importance

If you receive a share tip, look at it for at least a month before deciding to go with it.

ad44downey

Tuxman1 wrote: »

Thinking about building a FTSE 100 portfolio and looking for share tips. Some big dips in the major share prices and looking to buy for big gains in the next few years. May add to this monthly to smooth out any ups and downs.

I currently like the look of British Airways, British Aerospace and BP. Which look cheap.

Any tips and views welcome.

I'd buy shares that pay a good dividend of between 5 and 7% (that would include BP). Then any fall in share price won't be so bad.

sabretoothtigger

The share prices are often falling on the fear of the dividend becoming unsustainable.

Years ago I was looking at some Hyder shares, a water company who bought into electricity also. (ie. debt)
Excellent prospects, a utility and so presumably very safe.
Their yield was 10% I think I remember, very attractive but I had no idea why
Anyway they went under basically, even utilities can fail it seems

Lloyds for years has paid an amazing dividend. I used to post on threads like this with a guy who had mortgaged his house in order to invest in lloyds shares, he intended to speculate and his plan B was the dividend would always pay the rent if he was forced to hold the shares

Current news is Lloyds may just be able to pay a dividend of some sort but it will be in shares most likely


Meredith Whitney, some good looking but also very smart american banking analyst caused year before last Citi shares to lose massive value in one day as she foresaw a fall in their dividend due to poor capital provisions.

Present day their dividend has fallen from 40c to 1c per share


Current view on BP that I last saw was a warning on a possible problems with dividends in future.
I agree it would be out of character but theres no guarantee on these things unfortunately, high yield usually means high risk

I'll try and post up some reference links


[quote=
2/11/2007]Ms Whitney's report caused Citibank to lose more than $15 billion of market capitalisation, with its stock plunging more than 7 per cent in the first half hour of trading. In her report, Ms Whitney said Citigroup would need to cut its dividend or sell assets to avert what she said was a $30 billion capital shortfall[/quote]
http://business.timesonline.co.uk/tol/business/markets/article2793366.ece