What is the riskiest share you have bought?

sabretoothtigger

rfowler wrote: »

I bought DES last week at 44p......

How much cash to debt do they have ?

Ive heard of worse ideas because maybe they might even find oil :rotfl:

chris_m

sabretoothtigger wrote: »

How much cash to debt do they have ?

Ive heard of worse ideas because maybe they might even find oil :rotfl:

If not, they could always try competing with the likes of Evian or Perrier :D:D

lvader

With a stock like DES they don't need to find oil, just a rumour will do.

Reaper

chris_m wrote: »

If not, they could always try competing with the likes of Evian or Perrier :D:D

Yes they struck water didn't they, but mistook it for oil (the clue is in the colour guys). Did you ever see the film "Water"? A patchy but enjoyable movie.

sabretoothtigger

Dark water was a good Japanese horror film . I suggest the original though its been remade in usa

ChrisEvanson

I've bought TW., RBS and LLOY. At first I thought Taylor Woodrow were the risky ones but I do wonder at Lloyds now! I was watching recovery stocks for some years, picked an entry point and monitored. All have nearly doubled (BP), or gone up by 6x (Barclays), 7x (Thus, sold out to C&W) plus a few others which I have forgotten. So have recently shoved a few hundred up to a thousand in each of the above. I reckon they should be good for a decent return within the next 12-24 months.

marvin

ChrisEvanson wrote: »

I've bought TW., RBS and LLOY. At first I thought Taylor Woodrow were the risky ones but I do wonder at Lloyds now! I was watching recovery stocks for some years, picked an entry point and monitored. All have nearly doubled (BP), or gone up by 6x (Barclays), 7x (Thus, sold out to C&W) plus a few others which I have forgotten. So have recently shoved a few hundred up to a thousand in each of the above. I reckon they should be good for a decent return within the next 12-24 months.

I have all 3 of those and apart from capital growth the divi return in the future is what I focus on. TW used to pay a divi of around 15p, now lets presume they come back with a divi eventually of say 5p per year for every 1000 shares that is £50 1000 shares at mo costs around £350 that gives a personal return of aound 15% (once divi is being paid) get that in any bank at any time. All of this is risk of course they may never pay a divi they may pay a lot less in divi or indeed a lot more (if they get back to 15% that is £150 per 1000 shares). Buy at the right price you may get significant growth too which makes up the income between now and when divi is paid.

The same goes for RBS and Lloyds look at the potential divi return once they and the market returns too health, these shares are all linked the housing market relies on the banks lending money to sell houses.

The other thing of course they may go bust or be taken over but there is risk in this type of thing.

pqrdef

marvin wrote: »

The other thing of course they may go bust or be taken over but there is risk in this type of thing.

RBS and Lloyds have already been taken over, though not at the usual premium price.

Now they've got a major shareholder looking to offload at the first opportunity. Who will offload at a discount to the market price, notwithstanding that the market price should already be anticipating the discount - nice feedback loop there. Not the usual recovery play.

In fact it's hard to know what the share price is based on. We still don't know what the assets are worth, and the trading position is artificial. Are they really worth anything at all? If they were seriously shorted, could they stand up?

ChrisEvanson

Lots of scare mongers and doom and gloom merchants on the message boards! Ultimately these banks are a different play to the normal share as they have been bailed out by HMG. I very much doubt they will get out at below what they paid, that would be pointless and would cause an uproar.

New management and structures/strategies are taking them back to profit and there is talk of divis again within a year or two. It is likely the government disposal of shares may well bring a temporary dip. However many brokers have these as a strong buy. I'll take my chances.

marvin

pqrdef wrote: »

RBS and Lloyds have already been taken over, though not at the usual premium price.

Now they've got a major shareholder looking to offload at the first opportunity. Who will offload at a discount to the market price, notwithstanding that the market price should already be anticipating the discount - nice feedback loop there. Not the usual recovery play.

In fact it's hard to know what the share price is based on. We still don't know what the assets are worth, and the trading position is artificial. Are they really worth anything at all? If they were seriously shorted, could they stand up?

There in lies the risk, not sure I would consider it a takeover just a very large invester. Many strugling or new companies use investment funds to support them at stages, it is not seen as a takeover just a large investor, I see the Government support more in that way. Shares were issued to an investor of high net value (or debt depending on your view of the British economy) which has diluted their value. When they sell out I firmly expect RBS and Lloyds to go on a buying our own shares spree to get the dilution out of the shares before they start paying div's of any real value.

Both are long plays (make profits on the way if inclined I have already sold my holding before in Lloyds for a near 100% profit before buing back in again at a much lower price).

It is all a game some you win some you lose but do the work before you commit and it can be a fun ride.