Bargain Hunt - Which shares do you have your eye on as they fall?

IronWolf

hmm, well I guess it's not in as strong a position as I thought, but I think there'll always be a market for them, they started out supplying parts for radios so if they've survived this far they've probably got a good chance.

The value they add as far as I can see is the ability to supply a huge variety of components with ease. If you need 1000 different parts to make something, you might go direct to suppliers for the expensive ones but for the other 900 it would seem like too much effort and a distributor would also guarantee you received them as planned, rather than relying on 900 different suppliers.

You're making me worry about this now though

gadgetmind

The value they add as far as I can see is the ability to supply a huge variety of components with ease.

Yes, "kitting" is important and is a value add. It's not a USP but it is value add.

If you need 1000 different parts to make something, you might go direct to suppliers for the expensive ones but for the other 900 it would seem like too much effort and a distributor would also guarantee you received them as planned, rather than relying on 900 different suppliers.

It depends on your volume. For passives you might not go direct as soon as for the big ticket items, but you do once volume kicks in. You then place contracts to take a certain volume per month, with options to tweak given enough notice, so you need to be pretty sure of your volumes!

You're making me worry about this now though

Yeah, sorry about that. I guess my problem is that I'm on the really high volume side of things, and always have been, so maybe don't realise that the "long tail" away from consumer electronics is probably as lucrative.

mr_fishbulb

I'm now thinking of BP. Around 390 now, which isn't too bad considering they were at 300 when people thought they were going to turn the worlds oceans black.

Someone else on here mentioned BP, and the investing sites such as Motley Fool, and Seeking Alpha have been ramping up their articles on it.

PE and Yield both just under 5.

srcandas

mr_fishbulb wrote: »

I'm now thinking of BP.

I think if it hits 390 and there is some direction on Greece then I might have a very small nibble. The charts and numbers are showing there is some resistance at the moment. However while in normal times the price would look like a stunning bargain these are not normal times. I reckon if Spain goes for a rescue we will see a 5% drop across the board. Same goes for a Greek exit from the Euro. And while Greece remains an unknown (until an election plus a few days) I can't see the markets getting excited.

However I am getting very tempted by China. I see Mr Bolton's Fidelity IT is now trading at 73.5. With its gearing and its discount any recovery I feel will lead to a rapid 15% rise.

But I'm still sitting on my hands and cash :beer:

CLAPTON

what about a solid spanish bank like santander uk ; has a divi yield of 13.4% and it totally ring fenced from it parent by those firewalls we have seen on TV

Reaper

CLAPTON wrote: »

what about a solid spanish bank like santander uk ; has a divi yield of 13.4% and it totally ring fenced from it parent by those firewalls we have seen on TV

How about their preference shares instead? For example "ABB NAT PLC 10 3/8% NON-CUMULATIVE STLG PRF SHS" (owned by Santander since they took over Abbey") is currently yielding 12.5%
Non-cumulative so they could stop payments but no ordinary shareholders would get any money if they did. And if the worst happened preference shareholders come ahead of ordinary shareholders (but behind bonds) when dividing up the carcass.

srcandas

What price does LloydsTSB have to be before you would take a bite?

Currently the biggest loser the bank showed recently that it was making progress. Slow progress but progress.

It has to shed staff, branches, and restructure but it did lower its exposure to the PIIGS down to 23 billion.

Today it is down at 26.5p. Should I be tempted??? :beer:

coastline

srcandas wrote: »

What price does LloydsTSB have to be before you would take a bite?

Currently the biggest loser the bank showed recently that it was making progress. Slow progress but progress.

It has to shed staff, branches, and restructure but it did lower its exposure to the PIIGS down to 23 billion.

Today it is down at 26.5p. Should I be tempted??? :beer:

P/E of 6 for 2013 according to this...

http://uk.finance.yahoo.com/q/ae?s=LLOY.L

IronWolf

I think those Santanders are high yielding for a reason. Although Santander UK is separate, the Spanish arm has liquidity issues, and the first door it will come knocking at is its subsidiaries for more cash. High chance of those dividends being suspended imo.

sabretoothtigger

The spanish side is in the minority to its global business, they are gigantic.

Be worried about their south american banks, they need profits there to pay the bills

what about a solid spanish bank like santander uk

They do usually float each bank seperately however the UK is not. Try NYSE and you will find various santander shares divided by country. Otherwise on LSE the quote is BNC and that is for the entire company (in euros) which holds a section of each sub in varying degrees, UK is held 100%