Suggestions for a sound share investment

Steve182
Steve182 Posts: 623
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edited 6 March 2022 at 11:16PM in Savings & investments
Given the popularity of the "Suggestions for a speculative punt" thread by AnotherJoe last year, I've decided to start a thread where people who are familiar and comfortable with investing directly in individual companies can share their ideas for safer, less speculative share investments.

Obviously we now have a huge crisis with the invasion of Ukraine which has caused significant market volatility.

I'm currently looking to invest in companies that are not adversely affected, or could even benefit from this.

To start the ball rolling I'm putting forward Plains All American Pipeline Lp (PAA). 

This is a US company. UK investors in US companies will be aware that even with a W8-BEN there is 15% withholding tax on divis unless the shares are held in a SIPP, where there is no withholding tax.

The company provides transportation and storage of oil and LNG. Their share price has been flat for the past 6 months. 

Pre-pandemic, the shares were trading at around $18  They have been adversely affected by the pandemic with reduced earnings and loss of profits.
 
Currently they are trading at $10.86, but forecasts for 2022 and 2023 are for profits to return to levels approaching pre-pandemic, with a 12 month forward P/E of 4.9 based on Stockopedia's numbers.

Divi is currently $0.72 which is 6.6%. The board have recommended this to be increased to $0.87 for 2022 which would be 8% at current SP!

Full year 2021 results  -

http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220209:nGNX3y4zxs&default-theme=true

With Russia likely to be sidelined or even omitted from the Western oil/gas supply chain for some time to come I think this could be a growth opportunity, along with the whopping 8% divi. 

Do your own DD of course.
“Like a bunch of cod fishermen after all the cod’s been overfished, they don’t catch a lot of cod, but they keep on fishing in the same waters. That’s what’s happened to all these value investors. Maybe they should move to where the fish are.”   Charlie Munger, vice chairman, Berkshire Hathaway
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Comments

  • adindas
    adindas Posts: 6,803
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    edited 8 March 2022 at 2:15PM
    FB (Meta Platform, Inc). '
    This is just summary
    No credible competitors (it has moat). Invest in Metaverse. This are the list of the 10 largest FB subsidiaries which include WA, Instagram, Oculus, Live Rail, etc
    Growth stock but in value Territory.
    Very profitable business with a lot cash.
    P/E Ratio is currently 13.61 (Industry Average for Tech Software Internet 83)
    Price / Sales    4.33 (Industry Average for Tech stock Software Internet 16)
    Analyst 1yr PT: US$333.16
    52-week range: US$187.28 - 384.33 so potentially could be back to US$333.16 - US$ 384.33 in 1yr+ rime
    Just be aware the current market (sector) rotation or sentiment which is currently against growth stock, in favour of value stock like Consumer Staples, Materials, Utility, Energy, Oil and Gas etc.
    FB although in its current price is already in Value territory, and very profitable, it is still seen as a Growth stock. Not to mention, the current public sentiment against FB, bear market and market uncertainty. So it might still fall from here reaching a new low.
    So it is better to buy it in a smaller chunk 1 share (or even fractional 0.5 share) at a time and when they drop further consolidating at a new low is time to add it.
    I and I believe highly likely most people who are already investing, already has this stock part of their fund such as as S&P 500, VLS, etc but at the current price it is an opportunity to get it at a heavily discounted price. It could be sold again in the future when they are back to All Time High and rotate the money to similar stock which is sold at a discounted price.

  • Steve182
    Steve182 Posts: 623
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    edited 8 March 2022 at 10:02PM
    adindas said:
    FB (Meta Platform, Inc). '
    This is just summary
    No credible competitors (it has moat). Invest in Metaverse. This are the list of the 10 largest FB subsidiaries which include WA, Instagram, Oculus, Live Rail, etc
    Growth stock but in value Territory.
    Very profitable business with a lot cash.
    P/E Ratio is currently 13.61 (Industry Average for Tech Software Internet 83)
    Price / Sales    4.33 (Industry Average for Tech stock Software Internet 16)
    Analyst 1yr PT: US$333.16
    52-week range: US$187.28 - 384.33 so potentially could be back to US$333.16 - US$ 384.33 in 1yr+ rime
    Just be aware the current market (sector) rotation or sentiment which is currently against growth stock, in favour of value stock like Consumer Staples, Materials, Utility, Energy, Oil and Gas etc.
    FB although in its current price is already in Value territory, and very profitable, it is still seen as a Growth stock. Not to mention, the current public sentiment against FB, bear market and market uncertainty. So it might still fall from here reaching a new low.
    So it is better to buy it in a smaller chunk 1 share (or even fractional 0.5 share) at a time and when they drop further consolidating at a new low is time to add it.
    I and I believe highly likely most people who are already investing, already has this stock part of their fund such as as S&P 500, VLS, etc but at the current price it is an opportunity to get it at a heavily discounted price. It could be sold again in the future when they are back to All Time High and rotate the money to similar stock which is sold at a discounted price.


    I had no idea FB had such a low P/E, thanks for sharing. Stocko report below -



    “Like a bunch of cod fishermen after all the cod’s been overfished, they don’t catch a lot of cod, but they keep on fishing in the same waters. That’s what’s happened to all these value investors. Maybe they should move to where the fish are.”   Charlie Munger, vice chairman, Berkshire Hathaway
  • Steve182
    Steve182 Posts: 623
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    Thrugelmir, this thread awaits your learned contribution........
    “Like a bunch of cod fishermen after all the cod’s been overfished, they don’t catch a lot of cod, but they keep on fishing in the same waters. That’s what’s happened to all these value investors. Maybe they should move to where the fish are.”   Charlie Munger, vice chairman, Berkshire Hathaway
  • Thrugelmir
    Thrugelmir Posts: 89,546
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    edited 8 March 2022 at 10:48PM
    I'm sitting musing currently. Seems strange to watch three decades of peace come toppling down in a matter of days. Normally I have themes I'm researching. Today my page is blank. Devoid of inspiration. As the ripples from the stone that's been thrown in the pond are going to spread far and wide. Not a time to make hasty decisions. 
  • Steve182
    Steve182 Posts: 623
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    I'm sitting musing currently. Seems strange to watch three decades of peace come toppling down in a matter of days. Normally I have themes I'm researching. Today my page is blank. Devoid of inspiration. As the ripples from the stone that's been thrown in the pond are going to spread far and wide. Not a time to make hasty decisions. 
    These are indeed awful times. My wife is Polish and her family have close friends in Ukraine. One is friend is 62YO and because he's fit as a fiddle has joined up to fight. My 86 YO Polish mother in law spends much of her pension on Russian gas, we help her financially when needed, but we fear the taps will soon be turned off.... 
    “Like a bunch of cod fishermen after all the cod’s been overfished, they don’t catch a lot of cod, but they keep on fishing in the same waters. That’s what’s happened to all these value investors. Maybe they should move to where the fish are.”   Charlie Munger, vice chairman, Berkshire Hathaway
  • NedS
    NedS Posts: 3,512
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    I currently have around 25% of my income portfolio in renewables. Energy storage (GSF, GRID), solar (BSIF, FSFL, NESF), diversified (JLEN) and wind (UKW) are all performing like pseudo-bonds for me - relatively stable helping to smooth out volatility elsewhere, SPs have increased this year due to rate rises and the energy crisis, whilst paying attractive risk-adjusted 5-7% yields. Unlikely to make you rich overnight but doing their job in my portfolio whilst keeping the income streaming in.
  • Thrugelmir
    Thrugelmir Posts: 89,546
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    edited 8 March 2022 at 11:16PM
    To expand on what I said earlier. I've little appetite for global equities. Look at the US Corporates alone that have been impacted and that will suffer a direct loss from their Russian and Eastern European operations. Starbucks, Levi Jeans, AirBNB, Apple, Netflix, McDonalds, Boeing, Microsoft, Mastercard, Visa, Facebook, Twitter, Kentucky Fried Chicken, Disney, Warner Bros, Spotify, Expedia, Exxon Mobil, PepsiCo. The list goes on. Globalisation bubble may have finally burst. 




  • tebbins
    tebbins Posts: 773
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    Buy cheap, buy what you know (or at least what you can reasonably understand), as close to a monopoly, and as close to home as you can. Apart from the one Tesla share I still hold after throwing some play money at it 2018/19 and selling in 2020/21 all of my individual stocks are the two FTSE 100 tobacco companies, Direct Line, Moneysupermarket, National Grid and United Utilities. Tobacco and utilities are both regulated (i.e. state enforced) monopolies except for the completely interchangeable energy supplier and telecoms markets. DLG and MONY are the only financial companies that aren't completely interchangeable with all the others. I don't/can't/cba trying to understand how Meta works to an extent I would like to own a peice of it. I only if I can "get it", it being what the company actually does.
  • adindas
    adindas Posts: 6,803
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    edited 9 March 2022 at 10:24PM
    Steve182 said:
    adindas said:
    FB (Meta Platform, Inc). '
    This is just summary
    No credible competitors (it has moat). Invest in Metaverse. This are the list of the 10 largest FB subsidiaries which include WA, Instagram, Oculus, Live Rail, etc
    Growth stock but in value Territory.
    Very profitable business with a lot cash.
    P/E Ratio is currently 13.61 (Industry Average for Tech Software Internet 83)
    Price / Sales    4.33 (Industry Average for Tech stock Software Internet 16)
    Analyst 1yr PT: US$333.16
    52-week range: US$187.28 - 384.33 so potentially could be back to US$333.16 - US$ 384.33 in 1yr+ rime
    Just be aware the current market (sector) rotation or sentiment which is currently against growth stock, in favour of value stock like Consumer Staples, Materials, Utility, Energy, Oil and Gas etc.
    FB although in its current price is already in Value territory, and very profitable, it is still seen as a Growth stock. Not to mention, the current public sentiment against FB, bear market and market uncertainty. So it might still fall from here reaching a new low.
    So it is better to buy it in a smaller chunk 1 share (or even fractional 0.5 share) at a time and when they drop further consolidating at a new low is time to add it.
    I and I believe highly likely most people who are already investing, already has this stock part of their fund such as as S&P 500, VLS, etc but at the current price it is an opportunity to get it at a heavily discounted price. It could be sold again in the future when they are back to All Time High and rotate the money to similar stock which is sold at a discounted price.


    I had no idea FB had such a low P/E, thanks for sharing. Stocko report below -



    I just notice this Stockopedia report has a very good report layout as they present important information in one page. So save time to read it. Also they calculate the Z-Score and F-Score as well as M-Score (Earning Manipulation)
    Did you pay annual subscription to get access to Stockopedia ?? From their site it says £265/year ??
  • coastline
    coastline Posts: 1,630
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    edited 10 March 2022 at 12:01PM
    adindas said:
    Steve182 said:
    adindas said:
    FB (Meta Platform, Inc). '
    This is just summary
    No credible competitors (it has moat). Invest in Metaverse. This are the list of the 10 largest FB subsidiaries which include WA, Instagram, Oculus, Live Rail, etc
    Growth stock but in value Territory.
    Very profitable business with a lot cash.
    P/E Ratio is currently 13.61 (Industry Average for Tech Software Internet 83)
    Price / Sales    4.33 (Industry Average for Tech stock Software Internet 16)
    Analyst 1yr PT: US$333.16
    52-week range: US$187.28 - 384.33 so potentially could be back to US$333.16 - US$ 384.33 in 1yr+ rime
    Just be aware the current market (sector) rotation or sentiment which is currently against growth stock, in favour of value stock like Consumer Staples, Materials, Utility, Energy, Oil and Gas etc.
    FB although in its current price is already in Value territory, and very profitable, it is still seen as a Growth stock. Not to mention, the current public sentiment against FB, bear market and market uncertainty. So it might still fall from here reaching a new low.
    So it is better to buy it in a smaller chunk 1 share (or even fractional 0.5 share) at a time and when they drop further consolidating at a new low is time to add it.
    I and I believe highly likely most people who are already investing, already has this stock part of their fund such as as S&P 500, VLS, etc but at the current price it is an opportunity to get it at a heavily discounted price. It could be sold again in the future when they are back to All Time High and rotate the money to similar stock which is sold at a discounted price.


    I had no idea FB had such a low P/E, thanks for sharing. Stocko report below -



    I just notice this Stockopedia report has a very good report layout as they present important information in one page. So save time to read it. Also they calculate the Z-Score and F-Score as well as M-Score (Earning Manipulation)
    Did you pay annual subscription to get access to Stockopedia ?? From their site it says £265/year ??
    If you don't want to pay there's enough out there for free with a basic registration e mail and password. Some sites give you forecasts two years ahead.

      META PLATFORMS, INC. : Financial Data Forecasts Estimates and Expectations | FB | US30303M1027 | MarketScreener

    Meta Platforms, Inc. (FB) Analyst Ratings, Estimates & Forecasts - Yahoo Finance

    Meta Share Price (FB) Formerly Facebook - Investing.com UK

    I'm tracking a few at the moment which are oversold on a weekly timeframe chart. Earnings are forecast higher by 2023 at least and P/E's will be falling to reasonable levels. Here's some of them. Household names Next (NXT) J D Wetherspoons (JDW) and Unilever (ULVR). Smith and Nephew (SN.) and (ABF) for recovery. 


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