What are the Best shares to buy?

padocon · 19-01-2009 11:53pm #1

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

Thanks

Allah Hu Akbar · 19-01-2009 11:56pm

If we knew that we'd all be rich.

Lomu · 19-01-2009 11:56pm

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

Hanley · 20-01-2009 12:00am

Lomu wrote: »

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

C'mon....

padocon · 20-01-2009 12:04am

Hanley wrote: »

C'mon....

Hanley do you think they are dodgy?

padocon · 20-01-2009 12:05am

Allah Hu Akbar wrote: »

If we knew that we'd all be rich.

I know!!!:):)

Time Magazine · 20-01-2009 12:15am

padocon wrote: »

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.

randombar · 20-01-2009 1:08am

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.

pocketdooz · 20-01-2009 8:20am

padocon wrote: »

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.

.

padocon · 20-01-2009 10:40am

pocketdooz wrote: »

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 · 20-01-2009 11:54am

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 · 20-01-2009 1:25pm

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

padocon · 20-01-2009 1:47pm

walter wrote: »

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

Me, Nope

Heraldoffreeent · 20-01-2009 1:56pm

walter wrote: »

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.

Sleipnir · 20-01-2009 2:01pm

padocon wrote: »

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...:o

Idu · 20-01-2009 2:06pm

padocon wrote: »

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

Most banks are in the same boat so too diversify why not look at other sectors? Putting all your money in more than one banks shares is still all your eggs in one basket

heno55 · 20-01-2009 7:09pm

Heraldoffreeent wrote: »

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.

any hints on where to do research on these stocks

padocon · 20-01-2009 7:55pm

janets_on_clubs wrote: »

Most banks are in the same boat so too diversify why not look at other sectors? Putting all your money in more than one banks shares is still all your eggs in one basket

Every bank is not going to go bust!

Idu · 20-01-2009 8:20pm

padocon wrote: »

Every bank is not going to go bust!

But it's pure guesswork as to which will and won't

padocon · 20-01-2009 8:24pm

janets_on_clubs wrote: »

But it's pure guesswork as to which will and won't

So one could put it in a few. They might get taken over, but all wont go bust!

Heraldoffreeent · 20-01-2009 8:28pm

heno55 wrote: »

any hints on where to do research on these stocks

Company websites,Brokers notes,Oilbarrel.........Google is your friend.

Idu · 20-01-2009 8:34pm

padocon wrote: »

So one could put it in a few. They might get taken over, but all wont go bust!

Anglo arent bust either but as a publicly traded company they are. Same could happen to BOI/AIB/IL&P. I think it's extremely risky to only invest across one sector. To put it in perspective plenty of people were looking at bank shares when they were at €6. If they had hedged their exposure by buying across all three banking stocks they wouldnt be too happy now would they. Same all the way down the price range. Look back over this forum for examples

padocon · 20-01-2009 8:34pm

heno55 wrote: »

any hints on where to do research on these stocks

For shares in General one could check Business supplements, Davy's stock forecast ect

daveirl · 20-01-2009 8:41pm

This post has been deleted.

Heraldoffreeent · 20-01-2009 10:29pm

Strangely AIB were hit more today than BOI, despite the percieved overexposure of BOI.

padocon · 20-01-2009 10:50pm

daveirl wrote: »

This post has been deleted.

Don't have one. Well not to put all eggs in one basket.
Thanks for your help

daveirl · 21-01-2009 8:04pm

This post has been deleted.

Lomu · 06-06-2009 12:18pm

Lomu wrote: »

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

look at the money that could have been made :eek:, if you followed my advice that is:)

Tiesto · 06-06-2009 2:00pm

I purchased the iShares Ftse 100 stock on Friday.
The FTSE has been steadily rising since April, so i thought id give it ago.
Considering the markets have bottomed I think its a good safe enough buy.

Dont have to pay Stamp tax on it either as its an ETF.

marathonic · 06-06-2009 8:53pm

Hi,

http://caps.fool.com is a good resource to research American Shares.

ixus · 07-06-2009 11:48pm

Tiesto wrote: »

I purchased the iShares Ftse 100 stock on Friday.
The FTSE has been steadily rising since April, so i thought id give it ago.
Considering the markets have bottomed I think its a good safe enough buy.

Dont have to pay Stamp tax on it either as its an ETF.

What about currency exposure?

Tiesto · 07-06-2009 11:51pm

Yeah i guess thats an element.
I'm thinking though that the GBP is only gonna grow stronger vs the euro
So ill get more euro's back when selling..

ixus · 08-06-2009 12:07am

Tiesto wrote: »

Yeah i guess thats an element.
I'm thinking though that the GBP is only gonna grow stronger vs the euro
So ill get more euro's back when selling..

So you're doubling up/down

GBP v Euro has gone from about 0.93 to 0.875 since April. (+6%)

FTSE has gone from about 4000 to 4400 since April. (+10%)

The DAX (German) has gone from approx 4000 to 5000 since April. (+25%)

Tiesto · 08-06-2009 12:09am

dont get u

ixus · 08-06-2009 12:17am

If you used €1000 to buy the FTSE last April, you would have bought the FTSE at £930 at 4000. It's now worth 4400 and your conversion is 0.875 now.

So, the money you converted has gone up in value; and your shares have gone up.

But, if you compare them to the Germand index, with no currency risk, you would have earned more.

Tiesto · 08-06-2009 12:24am

ok i get you now
thanks for the explanation.

What are the Best shares to buy?

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