MSE News: Respite as FTSE rises slightly

oldvicar

gadgetmind wrote: »

However, some shares on my watch list, such as National Grid, have barely twitched, which is most annoying. Can we have a dip down to FTSE100=3500 some time next week?

Be careful what you wish for !

I suspect that you (gadget) will be well placed to take advantage, but others will be jumping out of windows.

gadgetmind

oldvicar wrote: »

Be careful what you wish for !

True enough!

I suspect that you (gadget) will be well placed to take advantage, but others will be jumping out of windows.

Me too if the companies themselves were suffering, but many have paid down a lot of debt, positioned themselves well to take advantage of overseas growth, and it's blind panic that's forcing their share prices down rather than fundamentals.

I'm currently "filling my boots" in pensions (massive sal sac), ISAs and unwrapped holdings. If it all goes wrong (unlikely) then everyone will undoubtedly laugh at me, but this would mean that all the doomsday scenarios had come true, which wouldn't really be a laughing matter.

oldvicar

gadgetmind wrote: »

True enough!



Me too if the companies themselves were suffering, but many have paid down a lot of debt, positioned themselves well to take advantage of overseas growth, and it's blind panic that's forcing their share prices down rather than fundamentals.

I'm currently "filling my boots" in pensions (massive sal sac), ISAs and unwrapped holdings. If it all goes wrong (unlikely) then everyone will undoubtedly laugh at me, but this would mean that all the doomsday scenarios had come true, which wouldn't really be a laughing matter.

Odd that companies can be in such rude health yet their shares plummet. Curiously the one you mentioned that hasn't (National Grid) is up to its eyes in debt and trying to raise some billions, including with its index linked bond. Maybe its one of the few companies investors think can actually afford to borrow. Its a strange world we live in, especially in the investment world.

I hope that fortune will favour the brave, like you. You might end up rich(er), and I won't be laughing if you don't. I know I wont get rich ... I'm hunkering down for the (unlikely, but more likely than it was) doomsday scenario, but at least I'm fairly sure I shall always have shirt on my back.

JamesU

moneylover wrote: »

Can I ask about limit orders with your broker -can you set several for different shares and attach the same one sum of money to each of them or does the money get tied to an order? Eg if you have £3000 could you put this one sum on say, BP, NG, VOD etc and see which one goes through first, the rest failing? I am sure this was possible a couple of years ago when I used Selftrade but having come back to investing I am now with X-O and they attach the money to an order and you cannot put the same money against any other order as well.

Scenario at X-O is right. If you have £3K and place limit orders to buy £1.25K BP (price X) and £1.25K NG.(price Y) you have two open orders where £2.5K of the funds are comitted and there is £0.5K left uncomitted. If you then try to place an open order for £1.25K VOD (price Z) you have a shortfall of £0.75K on account so that order cannot be placed. Not possible to rotate preference on what shares to buy depending on the price of shares, orders placed according to the funds that are available to cover the purchases.

JamesU

gadgetmind

oldvicar wrote: »

Odd that companies can be in such rude health yet their shares plummet. Curiously the one you mentioned that hasn't (National Grid) is up to its eyes in debt and trying to raise some billions, including with its index linked bond.

I do look at the debt level of companies, but always with an eye to whether this debt comes from investment that's generating good income. NG's yield suggests this is the case.

That bond is interesting, and has made me even keener to grab some equity as it reduces the chances of future dilution.

Regards company health versus share prices, yes, it's crazy. High yields, good cover, low p/e ratio, and all because the good gets sold off with the bad when everyone goes risk off.

I did very well with my share purchases in late 2008 and early 2009, and I see this as being an better opportunity. Even so, when I check my online accounts, and see how much we have in equities, I do get a little light headed!

sabretoothtigger

MSE should take up trading, they guessed this latest rally pretty well I reckon

gadgetmind

sabretoothtigger wrote: »

MSE should take up trading, they guessed this latest rally pretty well I reckon

I forget, is this thread about the latest dip/rally, the one before that, or the next one?

sabretoothtigger

erm it was friday so close enough. I think it dived right after but minor details