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

Reaper

A nice defensive play is the Investment Trust "Merchant's Trust". This fund has been going since 1889, has a low TER, and has increased its dividends every year for the last 28 years. The yield is currently 6.5%.

Worth keeping an eye on if prices continue to fall and the yield improves even further. It invests largely in UK high dividend FTSE100 companies. As they hold back income in good years to pay out in bad years it is a good defensive choice but note that it means it may not rise as quickly as the rest of the market if there is a rebound.

doubleJackD

Glen_Clark wrote: »

Because that is based on past profits. Future profits are what matters, and they are not expected to be so high. Particularly as RSA Investment returns will have taken a battering.

Shares look extremely cheap because the market is anticipating a Euro break up. When that actually happens, they may well get cheaper.

the FT website shows consensus earings of 13.25 pence this year and 13.83 pence for 2013. RSA might be worth a punt.

Linton

Glen_Clark wrote: »

....

Shares look extremely cheap because the market is anticipating a Euro break up. When that actually happens, they may well get cheaper.

If the market is anticipating something and the something happens shares often go up. What causes problems are surprises and perhaps worse waiting for something to happen as people are less keen to buy.

mr_fishbulb

Argh this is getting annoying now. The more I look, the more I'm changing my mind.

I'm now favouring Shell over BP as they haven't got payouts hanging over them.

Also looking at RSA after doing some more reading after Reaper mentioned them.

gadgetmind

Reaper wrote: »

A nice defensive play is the Investment Trust "Merchant's Trust". This fund has been going since 1889, has a low TER, and has increased its dividends every year for the last 28 years. The yield is currently 6.5%.

Citywire had an article on ITs today.

http://citywire.co.uk/money/investment-trusts-10-great-dividend-growers/a590155

Their numbers are all over the place, so check elsewhere, but it was still interesting.

Glen_Clark

mr_fishbulb wrote: »

I'm now favouring Shell over BP as they haven't got payouts hanging over them.

Yet?;)
Shell have had disasters before, and could do again.
Nevertheless, most people seem to favor Shell over BP.
Because that is already reflected in the share price.

doubleJackD

dairy crest look tasty, 7% yield and a PE of 7. they are one of the biggest dairy companies in the UK, a business i would imagine as being quite steady.

BAe look cheap as well.

gadgetmind

doubleJackD wrote: »

BAe look cheap as well.

Still 6% higher than back in August 2011 when I bought a tranche.

Balfour Beatty are at what I think is a good price given their yield, growing international exposure and fundamentals, but they are perhaps a little too small and/or cyclical for some folk.

Anyway, I did a really boring buy of Brown (N) Group this AM to mop up the dividends that have come in over the last few weeks and a regular lump sum I put into that account. Long may they remain boring!