padocon Registered User
#1

Anyone know of good share low at the moment not too much of a risk?
Banks maybe?

Thanks

#2

If we knew that we'd all be rich.

Lomu Registered User
#3

bank of ireland shares at the minute are only 34c. Worth an investment.

Hanley Because Hanley Heals...
#4

Lomu said:
bank of ireland shares at the minute are only 34c. Worth an investment.


C'mon....

padocon Registered User
#5

Hanley said:
C'mon....


Hanley do you think they are dodgy?

padocon Registered User
#6

Allah Hu Akbar said:
If we knew that we'd all be rich.


I know!!!

Time Magazine Registered User
#7

padocon said:
low at the moment not too much of a risk?
Banks maybe?


Bank stocks are about as risky as they get at the moment.

My tips:
  • Figure out how much risk you're willing to bear
  • Decide how long a time-frame you're looking at
  • Read about diversification of portfolios
  • Read more and more before you put your money somewhere
  • Don't touch anything until you've done the above.

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GaryCocs Registered User
#8

From my burning from Northern rock last year I reckon stay well away from Banks, god only knows what price the government are going to pay for the Anglo shares they've seized.

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pocketdooz Registered User
#9

padocon said:
Anyone know of good share low at the moment not too much of a risk?

Banks maybe?

Thanks


These two comments do not go together.

Banks are about as risky as it gets at the moment.

If you don't even know this much maybe you're better off sticking the money in a savings account.

Seriously.



.

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padocon Registered User
#10

pocketdooz said:
These two comments do not go together.

Banks are about as risky as it gets at the moment.

If you don't even know this much maybe you're better off sticking the money in a savings account.

Seriously.



.


Ok what about shares but not the banks?
or
Different bank shares. ie not putting all eggs in one basket?

marathonic Registered User
#11

I've been thinking about purchasing shares of two of the large US bank shares - JPM and WFC. I think they'll drop this morning so I'm gonna wait to the markets settle before making my decision.

My current plan though is not to buy them directly, I'm considering selling two PUT options on them - 2 April 12.50 puts on WFC at $180 each and 1 Mar 17.50 put on JPM at $138.

What this means is that I will not own shares in either company or be entitled to dividends. However, I will receive $498 ($180 * 2 + $138) which I'm going to use to add to my current holdings in EMR.

Then, if JPM and WFC are not below the 12.50 and 17.50 strike price on April (for WFC) and March (for JPM), I get to keep the $498.

If either fall below the strike price, I will be forced to buy at the strike price in March or April.

Let's assume that WFC drops by 50% between now and April. The shares would then cost $9.34 ($18.68 / 2). I would be forced to buy 200 shares (each option represents 100 shares) at $12.50 each. However, as I received the $360 for the option, the shares would only be costing me $10.70 ($12.50 - ($360 / 200)).

In other words, if WFC halves, I'd have to buy 200 shares at $12.50 and be down 13% and if WFC doesn't fall to $12.50 (a 33% fall), I'd be up $498.

This will be my first venture into the banking sector. It's quite risky using options - but no more risky than buying them directly. I'm basically risking losing alot of the potential upside but also hedging against the risk of some of the potential downside.

Obviously, my best case scenario would be if both shares finished slightly above the strike price. This would mean I'd then be able to sell new put options on the shares at lower strike prices for expiry later in the year.

walter Registered User
#12

how about oil company shares?
any idea on Tullow and Dragon?

padocon Registered User
#13

walter said:
how about oil company shares?
any idea on Tullow and Dragon?

Me, Nope

Heraldoffreeent Registered User
#14

walter said:
how about oil company shares?
any idea on Tullow and Dragon?


Tullow and Dragon look like good value now, and compared to the banking sector have held up relatively well(compared to Banks, at least),however there are risks with both, TLW have a need for about 1.2 billion in renegotiated capitalisation(tough, but not impossible in the current climate)and have not succeeded in selling off an asset once valued at about .4billion.
Dragon have one very large shareholder,ENOC, (over 50pc,IIRC), whose motives and direction are unknown.They also operate in Turkmeistan, which although not a Banana republic, is not exactly an open western democracy either.
You also need to take into account Russia's recent attempts to form a GAZpec.
In my opinion, As a longterm punt, these are probably worth taking a punt on,and it depends on what your interpretation of longterm is(mine would be 3-5 years) but DoYourOwnResearch, and I mean do your own research, not just read and believe what someone on a bulliten Board says.

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Sleipnir Registered User
#15

padocon said:
Ok what about shares but not the banks?
or
Different bank shares. ie not putting all eggs in one basket?


Yeah a friend of my dad's did this as his retirement plan. Half went into AIB and the other half into BOI...

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