Suggestions for a sound share investment

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  • Steve182
    Steve182 Posts: 623 Forumite
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    edited 4 May 2022 at 12:03AM
    Vehicle manufacturers wouldn't be high up my list of investable sectors at the moment. Serious headwinds to be be overcome. 
    Yes, accepted, but people will always buy cars. Tesla is trading at a P/E of around 66 and is at the top of many peoples investments (not mine).

    At 2.9 Stellantis has by far the lowest P/E of any vehicle manufacturer, and as far as I can see there is no obvious reason for this.

    Being 4th largest vehicle manufacturer in the world I can see economies of scale/benefits of shared technology. 

    A share price recovery to $20, which is where it's been throughout most of 2021 would be a 50% upside from where it sits currently. This would still only equate to a P/E of 4.3 and therefore well within reach in the short-med term I think.
    “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
  • sevenhills
    sevenhills Posts: 5,875 Forumite
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    adindas said:
    FB (Meta Platform, Inc). '
    This is just summary
    No credible competitors (it has moat). Invest in Metaverse.
    Very profitable business with a lot cash.
    FB although in its current price is already in Value territory, and very profitable, it is still seen as a Growth stock.
    I have just bought into Meta, even better value now.
    How have the other suggestions faired?
  • adindas
    adindas Posts: 6,813 Forumite
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    edited 22 June 2022 at 10:16PM
    adindas said:
    FB (Meta Platform, Inc). '
    This is just summary
    No credible competitors (it has moat). Invest in Metaverse.
    Very profitable business with a lot cash.
    FB although in its current price is already in Value territory, and very profitable, it is still seen as a Growth stock.
    I have just bought into Meta, even better value now.
    How have the other suggestions faired?
    META (Facebook) is doing well compared to other tech stock the current price is £155.74 so it is down 16.51%.  This is the result of my META that I just print a few minutes ago


    It is better performing than the market, the index S&P 500 (dwon 20%+) or NASDAQ (down 30%+). Also keep in mind META is growth stocks, once they recover they could up 20% in less than month.
    There is currently a lot of sentiment against META. Also they just lost the court battle in Russia. A Russian court upheld a March ruling that social media company Meta was guilty of “extremist activity,”
    The current P/E ratio of 11.89 is very attractive compared to other tech stock. Amazon is trading at P/E 32.79. S&P P/E Ratio is currently 19. NASDAQ composite is much higher.
    The other suggestion in this thread is Barclay currently trading at GBX161.78. This is my result of Barclay.


    Again it is performing better than FTSE 100 (currently down 7.57%).
    Again it is still trading at a very good valuation P/E ratio of 3.67 (just one aspect of valuation)
    But of course people need to do their own DDs and make their own decision. We take our own gain but we also need to take our own loss.
  • sevenhills
    sevenhills Posts: 5,875 Forumite
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    I was considering Facebook before the 16% drop, that and I consider having another value American share will help me diversify 
  • adindas
    adindas Posts: 6,813 Forumite
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    edited 22 July 2022 at 11:14PM
    Just an update of the stocks that have been mentioned here before. Barclay (BARC), Facebook/Meta Platform (META) for long term holding, e.g investing and not for trading. Doing a selective DCA, they perform much better than the market in the current bear market.

  • adindas
    adindas Posts: 6,813 Forumite
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    edited 25 July 2022 at 12:20PM
    Other stock that I believe is severely undervalue is parent companies of Google: Alphabet, (GOOG or GOOGL)
    It is a very profitable companies with very high moat. Literally no competitors. In my opinion they are better than Apple (AAPL). They are growing revenue, Free Cash better faster than apple.
    After the recent stock split, with the current share price of $107.95 they have a very attractive valuation, very profitable business with almost zero debt (see below)
    Trailing P/E Ratio   19.53; Forward P/E Ratio  19.99 (relatively good for growth tech companies).
    P/E Growth   1.18; Debt-to-Equity Ratio 0.06; Current Ratio 2.87; Quick Ratio 2.85

    Good Analyst Price Target

    For Steve182 Do you mind sharing your Stocko report, as I do not have a paid subscription?
    Let Keep all of these stock picks where we could always look back sometimes in the future.
    Also FCF keep increasing, P/FCF is closed historic low ...




  • adindas
    adindas Posts: 6,813 Forumite
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    edited 24 July 2022 at 6:59PM
    We put our money where our mouths are : This is my Alphabet investment (GOOGL). There was STD (stock transmitted disease) from SNAP (Snapchat); yesterday on Friday, July 22, 2022 where SNAP dropped 39% in a day following poor earning report. This I believe caused FUD to most (if not all) of the tech stocks whose revenues rely on advertising to dip on Friday.
    This might be a good opportunity for a good entry point for alphabet investment (GOOGL) ?? For people who are already investing it might be time to add more position. We take our own gain but we also need to take our own loses.

  • They announce their own earnings next week. I know they have other revenue streams, cloud services being a prominent one, but if their ad revenue has fared worse than expected there could be further drops. A big week for many of the main characters next week in fact.
  • adindas
    adindas Posts: 6,813 Forumite
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    edited 24 July 2022 at 7:03PM
    They announce their own earnings next week. I know they have other revenue streams, cloud services being a prominent one, but if their ad revenue has fared worse than expected there could be further drops. A big week for many of the main characters next week in fact.
    The main price drop on Friday imo  is due to STD (stock transmitted disease) from SNAP (Snapchat); yesterday on Friday, July 22, 2022 where SNAP dropped around 39% in a day following poor earning report.
    Revenue streams for tech companies rely on advertising will not only effect Google, Snapchat but everywhere across discretionary items. I read a news that people start delaying paying their internet, phone bills. If people are not paying phone bill let alone buying discretionary items which are not a primary need.
    In relation to tech companies relying on advertising, they might see the drop in the revenue as the companies might be reducing their advertising budget following the slow demand in discretionary items. But if you wait until people start putting money on discretionary items, you might have missed the boat.
  • I don’t disagree, I’m just saying Alphabet themselves report Q2 earnings next week. If they miss, as others have been missing, the entry you talk of could be lower.
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