My First Share Purchase - Good or Bad?

meester

Bazn wrote: »

hmm.. there is a rich and famous investor who once said that the time to buy was when everyone else is giving the bargepole treatment (well not an exact quote, but that was the gist of it...)

just playing devils advocate!

I think it was more like 'buy good companies when they are out of fashion'.

Is DSG a good company?

Bazn

meester wrote: »

I think it was more like 'buy good companies when they are out of fashion'.

Is DSG a good company?

lol well when something is "out of fashion" by definition means that the general consensus is that it is not a good thing...

to be honest i'm just raising material for debate... i'm not too keen on the prospects for dsg either - but i could be proven wrong!

cells

the reason their share price is lower than it has been for the last 10 years is becuase of the internet

my parents generation went to the dixions groups to buy all sorts of electricals.

i have never bought anything from them, i dont think i ever will!

how can they compete with internet companies which have far lower overheads?

they will die a slow death & then also probably turn internet only retailer.

i would dump their stock tbh

cells

TWR88 wrote: »

749 shares in DSGI (Dixons Group, owns PC WORLD, Currys) @ 64.50, a £500 investment. Need a second opinion, how do you rate this purchase? The share price has been falling for months from around 170 12 months ago. But things seem to be on the up. As I see it things can get much worse, and fingers crossed the chances of an established company like this going into liquidation is pretty low. So as a long term investment (12 months+) should be okay? At some point in the future things are going to get a lot better for the company no?

do you mean you bought 749 shares at £64.50
thats nearly £50,000 of shares not £500

or did you buy it on a margin of 1:100 :eek:

chesky369

shares are quoted in pence, not pounds.

Bazn

lol the questions in the original post got some answers today

King_Weasel

Buying out-of-favour shares is a good way of making money on the stock market.

It's also an excellent method of losing it.

ianmr65

Bazn wrote: »

lol the questions in the original post got some answers today

Hope he took the 'sell' advice!! 10% down already, and more to come.

"Shares in DSG International fell sharply on Thursday after the retailer delivered another profits warning as cash-strapped
customers increasingly avoided full-priced goods and sought out bargains instead.
Shares dropped by nearly 11 per cent or 7p to 58p by lunch time as the owner of Currys and PC World said it now expected full-year underlying pre-tax profits to be in the range of £200m - £210m"

My view is that dsgi are stuffed, even the ever decreasing number of people who don't have internet access are turning away, and buying their electricals at tesco, argos or wherever. They have far too much property, and floor space. And their internet sales are canabalising their shop sales.

The retail sector as a whole is stuffed too, with the possible exception of the supermarkets, and strangly lesuire.

The worse things get the more people are going to try to drown their sorrows, 'with a good night out'.

At the hight of the depression in the 30's speakeasys and dance clubs were thriving. Sure 25% were barely able to get enough to eat, but the 75% that were working knew that they were on a knife edge, and could be on a bread line the next day. So the only way they could make it through was to go out and enjoy themselves. Same here, during the war. Except here it was being dead the next day.

Other sectors which will thrive in a down turn

Tobacco Manufacture
Alcohol Manufacture
Agriculture
Bankruptcy, and foreclosure services.
Mining
Security Services
Private Medical Services
pharmacutecals
Defence.
Utillities

Areas to avoid at all costs
Property, and property development.
Banking and finance
Travel
Media and Marketing
industrial production
Manufacturing
Telecoms

I also think we will see a savage reduction in public spending. For years central and local goverment has been propping up the economy and keeeping the jobless totals down, by employing millions of people, on the goverments payroll. But mostly failing to use these resources efficiently.
This has all (effectively) been paid for by the credit boom.
This kitty has just run dry, and the budget defict is growing, and tax revenues are falling.
As goverment(of whichver colour) is forced to rein in public spending, the axe will fall on all the non-jobs created over the years.
This will have the cleansing effect of making less people work better, and more effciently, Whilst stripping away layers of needless beurocracy.
Not becuse of some effeciency measure or proposal. But by the sheer fact there will be many fewer of them, as the country will no longer be able to pay for them, or their index linked pensions.
The voluntary, and chraritable sector will fill some of the gaps.

MoneyTown

Now with more competition DSG are a definite sell I reckon:

http://business.timesonline.co.uk/tol/business/industry_sectors/retailing/article3897442.ece

ad44downey

TWR88 wrote: »

749 shares in DSGI (Dixons Group, owns PC WORLD, Currys) @ 64.50, a £500 investment. Need a second opinion, how do you rate this purchase? The share price has been falling for months from around 170 12 months ago. But things seem to be on the up. As I see it things can get much worse, and fingers crossed the chances of an established company like this going into liquidation is pretty low. So as a long term investment (12 months+) should be okay? At some point in the future things are going to get a lot better for the company no?

A blast from the past. DSG shares finish at 42.5 pence today. Just as in the banking or housing sectors, just because a share halves or more in value doesn't mean it's good value. Quite the opposite in fact. :eek: