Crazy MBNA offer

stevemcol

TTMCM

Only playing with Stoozing profits (and I only Stooze for fun anyway) so no probs. Character have performed solidly for months and most sites value them between 230 and 250p. Just wish I'd first picked up on this when you did!
I'll stick with them up to xmas and see what happens.

TTMCMschine

Well,
there you are - must be careful when dealing in shares. I had bought £15K of ACG 2 days ago at 70p & was thinking that they were undervalued. Today they dropped like a brick to 40p resulting in a loss for me of £6.5K.

You have to larf

stevemcol

wow

are you going to sit tight?

what was the cause?

is now a good time to get in?

blisteringblue

TTMCMschine wrote: »

Well,
there you are - must be careful when dealing in shares. I had bought £15K of ACG 2 days ago at 70p & was thinking that they were undervalued. Today they dropped like a brick to 40p resulting in a loss for me of £6.5K.

You have to larf

2nd profit warning this year !! Seems the Banks are starting to play hardball with the IVA schemes.

I read up on the company when you mentioned them before and they strike me as a similar company to what was the Accident Group. They spring up from nowhere and expand expand expand, but as soon as they hit a rough patch it's the end of the world. What would worry me is the 5.2m cash they had at last profit warning is now down to 3m, so they must be shipping money right left and centre.

Still TTMCMschine it's your FREE profit. Question is have you got steel undies to average down at this level ? Not one for me !!

TTMCMschine

Hi Guys,
No I won't be averaging down, I'm going to swallow the loss. The thing with these is that sentiment is well & truly against them. I had thought that they were undervalued, particularly when last month they had said things were going so well - one month later & they says things are going badly - very poor management in my opinion. They might bounce on Tuesday, but they didn't when they fell to 70p, & they might go down further, so in my mind they aren't worth the risk.

The missing couple of million quid went as a payment for a company they had bought, so it doesn't indicate that they were leaking cash, but if the IVAs are down by such a large amount when their peers are all on target then it won't be long before they are leaking like a seive I think.

Its annoying to lose money like that but it could have been worse - there are lots of people on one bulleting board who had bought when they were over £2-00 each, & one poster has been wiped out totally by the drop on Friday - wiped out in 30 minutes of trading!!!

stevemcol

For a numpty, can you explain what averaging down is pls.

blisteringblue

stevemcol wrote: »

For a numpty, can you explain what averaging down is pls.

In this example TTMCM is now sitting on a loss from the share as he bought at 70p and they are now 40p ish.

Averaging down is where he would now buy extra shares in the company at this new 40p level and so averaging the price he paid for the shares to a level lower than the initial 70p

You then hope the share goes up from here and you therefore have more chance to get your money back

eg. £1000 at 70p = 1428 shares

extra £1000 investment @ 40p = 2500 additional shares

so for an investment of £2000 you now have a holding of 3928 shares which have been averaged down to 50p a share

stevemcol

I see character group have taken a knock over the last few days. I'll probably sit tight.

MrChips

Yeah, I just saw that. A 40ish p drop - why was that? Some results below expectations?

TTMCMschine

Hello,
I'm still sitting tight too

I don't think theres any question of below expectation results - & that has come from the FD Kieron Shah himself when questioned directly by a couple of major shareholders. I think it is mainly that they have risen fast & some people are now taking some profits & the market makers are making sure that they line their pockets by making as much money as possible, and of course this time of year usually sees a bit of an easing back, but don't forget also that CCT started buying back their own shares again at £2-00, so they must think that they're worth at least that much.