UK Stockmarket 2009 and beyond

sabretoothtigger

USA was always more expensive, its because Dollar is King I guess. Yield 2.11%

FTSE is a bit better if this is correct

hit single figures before a bottom

They dont have to stay there though. IF we really got good GDP growth then 20 PE is fine because the future earnings justify it generally.

I think 11 is ok, I start being interested at 10 PE.
SPY is not cheap, the idea of it hitting a bottom is then growth ensues but we got this stupid QE screwing perspectives.

I dont think we do have growth therefore trim profits at high PE unless its tech or selling to Asia maybe

A few companies are at 2013 PE of 3 which is silly cheap especially for people in these over rated fixed bonds

coastline

Pennon...any views....gotta stop falling sometime...??
Trading statement regarding recycling operations in last few days..

http://www.share.com/cgi-bin/oicgi.exe/inet_tsc_dl2?epic=PNN

sabretoothtigger

Questor did a brief review, it was his tip of the week. Considered easy income alongside United utilities and others.
My 'water' share hyder is doing well, though they are not really uk not really water but the sector is apparently fine barring extreme intervention by government.
Considering all this rain, surely they cant go much wrong with supplying it adequately


High PE vs low PE. Which is the better, ARM or Intel. I know where my money is but Ive been mostly wrong as I turned down Arm at 200 and it was 20 PE in 2009 I think
http://uk.finance.yahoo.com/news/arm-holdings-outperform-intel-142300515.html

gadgetmind

I'm about to buy a few more preference shares. I know the young guns regards these as boring, but you can't really knock 8%+ pa with little downside right now.

simonfitba

gadgetmind wrote: »

I'm about to buy a few more preference shares. I know the young guns regards these as boring, but you can't really knock 8%+ pa with little downside right now.

Mind if I enquire which ones? More Lloyds?

I don't really know much about preference shares. Must do some research...

coastline

simonfitba wrote: »

Mind if I enquire which ones? More Lloyds?

I don't really know much about preference shares. Must do some research...

a decent site..

http://www.fixedincomeinvestor.co.uk/x/default.html

gadgetmind

simonfitba wrote: »

Mind if I enquire which ones? More Lloyds?

No, we're a bit heavy on those. They are still a great buy IMO but there is only so much Lloyds paper I want to be holding right now.

I'm looking at RECP as tipped by someone on the MF forums. 8% coupon and trading at around par. Little capital upside as these aren't perpetual and have just under five years to run.

They are non-discretionary and cumulative, so the only risk is that Real Estate Credit Investments can't redeem, which is a risk I need to carefully research this weekend.

Their ordinaries (RECI) also seem to have merit, there have been purchases by some big players, and the chairman (and his kids!) have been increasing their stakes recently.

sabretoothtigger

These all seem decent yield 5% or more , I didnt know you could get an emerging market bond etf

SEMB http://www.iii.co.uk/investing/factsheet/B9Y7
SEML http://www.iii.co.uk/investing/factsheet/02VF
ISXF http://www.iii.co.uk/investing/factsheet/GPH1


Why does HSBC yield 9% ?
http://www.fixedincomeinvestor.co.uk/x/bondchart.html?groupid=4&id=405
Halifax is 6% http://www.fixedincomeinvestor.co.uk/x/bondchart.html?groupid=4&id=415

Lloyds prefs doubled over 2 years but the ordinary shares beat them over 1 year

Bought some POG but APF was better deal as its just gone ex div 4.45p but not dropped from yesterday

_Money_am_CFD_Weekly_bulletin wrote:

Gold bugs should pounce on Petropavlovsk dip

POG chart Russia-based gold miner Petropavlovsk (POG) looks significantly oversold, creating an opportunity to buy at levels last seen during 2008's global financial crisis. There are financial and operational risks to consider, yet investors with money they can afford to lose should consider the £671 million cap as a potential recovery trade in light of gold production growth and a bullish outlook for the precious metal price.

Petropavlovsk is one of the FTSE 350's worst performers during the last three months (see table below). The market has been concerned over the miner's financial capacity to support any large delays to a new processing plant expected to become operational in 2014. The shares edged down further last week after a negative read-across from World Gold Council figures (15 Nov). The 11% drop in third quarter global gold demand is somewhat misleading as the period faced tough comparative figures since 2011 was an exceptional year for gold sales.

Speaking to Shares (see Griller, Shares, 25 Oct), chairman Peter Hambro says Petropavlovsk does not face financial problems given strong support from Russian banks. Canaccord Genuity says high gold prices for a 'sustained period' should result in stronger cashflows, help to reduce debt and provide more headroom to repay a $380 million convertible bond in 2015.

gadgetmind

You really need to look at the distribution yield, which is now sub 4% for ISXF, which I hold alongside SLXX. (I'm reducing my financial bond holdings via ETFs as I directly hold various prefs.)

Why does HSBC yield 9% ?

That's why fixed interest is such hard work. HSBC can call at principal in April 2013. I think there is one more interest payment due on April 8th but then there will be some capital loss as it's pretty certain that HSBC will call.

Lloyds prefs doubled over 2 years but the ordinary shares beat them over 1 year

Look at the behaviour of the two since 2008.

http://www.moneyweek.com/investment-advice/how-to-invest/strategies/right-side-is-lloyds-on-the-mend-61122

You hold fixed interest because it behaves differently to equity capital and it rarely makes sense to compare them over short periods rather than market cycles.

sabretoothtigger

Ive sold a bit of Lloyds recently just to take something from its rise. If we get a fall back in the next 6 months I might well take LLPD or LLPC instead then.
I presume the main risk is that interest or inflation rises alot and somehow pref share is inferior to ordinary in that the return is fixed though obviously its superior right now

And NWBD instead of RBS Pity I didnt consider that a year ago or June when I bought the ordinaries though they both gained as much its no div


Halifax have offered to transfer my shares for no charge so I may take up that share account that deals for 50p +£100 PA and start doing these shares/prefs instead of spreadbets


My CREE breaks even for first time in a while, makers of the fine LED torch.
Hot technology to keep an eye on as well as 3D printing if you see that its awesome, the world is still advancing fast outside of failure politics

AAZ still lagging which is fine by me tbh