What is the riskiest share you have bought?

sabretoothtigger

We are quite lucky the FTSE has very little technology in it. Right now I think tech is fairly good value considering its potential overall, the emerging economies can duplicate all sorts but not so much the established talent of the bigger tech companys. China imports high tech from japan like most countries

mike88

E Capital listed on AIM. Bought for £1000 sold for £12.50 after commission.

C_Mababejive

Ele,vog,fto,fweb

Reaper

Reaper wrote: »

SEA is an interesting choice. I might just go away and research that. I take it you bought at the very top of the peak?!

After looking at it I think I'll pass. The share price will jump up or down shortly depending whether they find a decent buyer for SERL but after that it is going to be a long time without income while they build ships etc for their new focus on offshore wind farm maintenance. Actually a not a bad plan and I may revist it later but not right now.

Anybody else got any risky favourites tipped for greatness? I have space for 1 more nutty gamble in my portfolio. Reasons why you think it is a good buy would be useful.

Masomnia

I'm pretty tempted to dip my toe into a risky AIM share, it's the next frontier for me in a way. So an interesting thread!

Reaper

HMV - one I have bought and would classify as risky.

Why is it risky?
1) Both HMV and the bookshop Waterstones which it owns are under pressure from internet retailers such as Amazon. Their high street competitors have already gone out of business (eg Zavvi, Borders)
2) If the predicted double dip happens people may cut back their spending on things such as entertainment.
3) Apparently it is the most shorted stock in Europe because the market expects a steady decline - so don't expect the share price to go up!

Why did I buy it then?
1) HMV management are doing all the right things. e.g. diversifying into live concerts and ticket sales, online stores etc and sales have largely held up so far.
2) It is the most shorted stock in Europe. Yes I know I put that as a risk factor but to me it means the share price is always going to be good value.
3) Their high street competitors have already gone out of business. Yes another one I listed as a risk factor but for those who don't like shopping on the internet there aren't many other choices any more.
4) This is the big one - huge dividends. For the last 5 years they have very consistently paid 1.8p in February and 7.4p in October.

What puzzles me is how low the share price is. Today it closed at an astonishing 57p. Now somebody tell me if I'm missing something obvious but as the next dividend has already been declared and we have not reached the ex-dividend date that means people buying at that price will get a 13% return in just a few short months - and if the pattern holds an additional 3% six months later.

While this is certainly not a share to buy in the hope it will go up in value surely it should apeal to those seeking income. Yet people still seem keen to buy poor paying corporate bonds.

I keep getting a nagging feeling I must be missing something obvious. If so somebody please let me know asap because I'm thinking of buying more.

cloud_dog

Most Risky: Langbar International

Why: Greed

Why was it risky: Its a long story (buy me a drink and I'll tell...) but suffice to say I lost 80% of my investment, oh and fraud was involved.

Masomnia

Reaper wrote: »

HMV - one I have bought and would classify as risky.

Why is it risky?
1) Both HMV and the bookshop Waterstones which it owns are under pressure from internet retailers such as Amazon. Their high street competitors have already gone out of business (eg Zavvi, Borders)
2) If the predicted double dip happens people may cut back their spending on things such as entertainment.
3) Apparently it is the most shorted stock in Europe because the market expects a steady decline - so don't expect the share price to go up!

Why did I buy it then?
1) HMV management are doing all the right things. e.g. diversifying into live concerts and ticket sales, online stores etc and sales have largely held up so far.
2) It is the most shorted stock in Europe. Yes I know I put that as a risk factor but to me it means the share price is always going to be good value.
3) Their high street competitors have already gone out of business. Yes another one I listed as a risk factor but for those who don't like shopping on the internet there aren't many other choices any more.
4) This is the big one - huge dividends. For the last 5 years they have very consistently paid 1.8p in February and 7.4p in October.

What puzzles me is how low the share price is. Today it closed at an astonishing 57p. Now somebody tell me if I'm missing something obvious but as the next dividend has already been declared and we have not reached the ex-dividend date that means people buying at that price will get a 13% return in just a few short months - and if the pattern holds an additional 3% six months later.

While this is certainly not a share to buy in the hope it will go up in value surely it should apeal to those seeking income. Yet people still seem keen to buy poor paying corporate bonds.

I keep getting a nagging feeling I must be missing something obvious. If so somebody please let me know asap because I'm thinking of buying more.

That's very interesting! I'm a big believer in dividends/high income and re-investing. Certainly one to think about.

Shorting is an indicator of negative sentiment, but often is contrarion investing that works out to be the most profitable. If it does begin to recover I imagine a lot of shares will be bought to cover the short positions, could also work in your favour.

Reaper

Masomnia wrote: »

If it does begin to recover I imagine a lot of shares will be bought to cover the short positions, could also work in your favour.

There was one day in June where the shares went up 8% in a day and it was widely believed there was a "sort squeeze" where the shorters scrambled to cover their positions. That was a one off but yes if market sentiment was to move in their favour it would multiply the gain. Can't see it happening in the forseeable future though.

Sceptic001

Reaper wrote: »

2) It is the most shorted stock in Europe.

Where do you find this info, Reaper?