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Toff
'But there’s a real danger in averaging down. '
I agree and I was lucky but have confidence in the industry and the role it plays in trade agreements etc.
I think BT will see £4 again once politicians and civil servants are all lined up and the management team move from forming to norming to storming...
When I average down, I include selling and buying back lower. I have worked for Vod and BT so have a genuine interest too.
Longish
“Yes I bought too many Vod from over 200 to 180s and then all the way down to 122. Sold for profit on the way back up for a 144 average..”
So you averaged down on Vodafone. Sounds like you got lucky and recovered your losses.
But there’s a real danger in averaging down. Not only can you compound your losses, it can tie money up that could be used for better trading opportunities.
I’m not saying you do it, but some inexperienced traders end up with all their money in one share by averaging down.
It’s a risky gamble, especially if you get saddled with a share like BT. For example say you bought in at £4
Then averaged down at £3.50 and again at £3. And then maybe average down again.
The losses would really rack up.
A better strategy is size allocation, it doesn’t have to be bought in one trade, but don’t exceed it.
Toff
TLW
Yes I bought too many Vod from over 200 to 180s and then all the way down to 122. Sold for profit on the way back up for a 144 average..
My BT stop was a schoolboy error but traded back to 196 average.
I think BT is going to come good. The new management imo are finalising strategy and have made substantial financial commitments. That's good and I feel they are positioned for a one off correction up before the return to SP growth and why I got back in
Going to be an interesting update. If it is indeed negative, one would have to question why he made such a large investment. Also, that would be very frightening, as he more than most should no the nunbers. I don't think we'll see any surprises and likewise, I don't expect anything spectacular. More, as you were. I don't expect the divi to be cut.
He bought £750k worth, with own money at £2.04. Not insider trading, as legal timeframe, but does have by default considerable knowledge of the
numbers. So just cannot see this being a negative update and would hope for some bounce back.
Only problem with a divi cut (or re-basing, not cutting for anybody who is in Vodafone!) is whilst the % still looks good against current share price, it is not good for the majority invested at higher than this. Short term drop at Voda far outweighed the cut. So could go south if a cut announced this update
Longish
Agreed. I have made a mistake on this occasion in vastly underestimating the severe market downgrade that has recently been applied to BT Group's share price. There is nothing I can do about this at present, but my confidence in a reversal remains undiminished despite comments in online articles, and bulletin boards, which mostly offer opinions (reasoned or otherwise, not unlike my own). I am under no pressure to sell, and will hold indefinitely ( as I did with my Vodafone stock from 122p upwards to today's 156p, and hopefully rising towards my personal 185p target price this year). Regards and best wishes with your BT Group sharetrading. I am confident that this will work its way to a good profit, although definitely not in the foreseeable future.
TLW
I am @196. Was stopped out at 158 LoL and went nomad..
I am back in because of the management buys and will trade down for a better average and lth
Lets be less selective Jansen also bought 1.5 million shares at 202 in June. Which is 15% above the present price!!!
It stands to reason that Mr. Lowth has a far better understanding of BT Group's finances than Deutsche Bank or Barclay's Capital. The share price is now heading towards their predicted target prices, although I suspect that the current very rapid share price decline has more to do with "market forces" at work, than BT Group's underlying fundamentals. I am invested @ 189p ave, and intend to hold until the share price reaches 250p, however far in the future that may be. I have more trust in Mr. Lowth's judgement than in brokers' valuations which often tend to change according to the "financial weather".
Also on 16-Sep-19 Philip Jansen bought 584,000 at 171.00 - ie around current sp level
Avrohom - Yes, do.
Looking at it another way It might be another reason to sell. I would humbly suggest this just proves his very poor judgment.
Lets just be patient and wait before we pass judgment
Analyst Jerry Dellis at Jefferies notes that Mr Lowth has never bought in December before – adding that he “didn’t have to buy any shares now”. Mr Dellis says that Mr Lowth is meant to take his holding up to 250 per cent of salary, but this target has no deadline.
Interesting he bought when he did. Bet he wishes he held back a bit now though.
Pokerchips - No. They were purchased within the legal timeframe. The bottom line is that if he doesn't have a grasp of the figures and the underlying direction of travel then no-one does, including the CEO and Chairman. Simples!
DONVANVLIET1,
Are you suggesting illegal,insider trading has taken place??
Call me naive, but I'm anticipating better than expected results next week. After all when BT's risk averse Chief Financial Officer buys shed loads of shares for both he and his wife (way North of today's SP) it does beg the very simple question "What does he know that the City doesn't?". The answer quite simply is "loads more".