We would love to hear your thoughts about our site and services, please take our survey here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
@Dagger, glad you are back at work, best of luck to you and your wife.
DeanMck
TMT.
Cheers guys. You've ( as usual) given great advice. I've got some food for thought. I'm going to have a think this evening.
I'll post on here what I've done.
I'm back to work now, I'm self employed but stayed away for a few months cos of my wife being in vulnerable category. As I'm back at work I
wont be posting as regularly. I wish everyone well.
Evening posts on here from now on!!
Largely agree with Dean here.
Depends on your risk profile and investment horizon. If buying a house next year your answer is different from if you are willing to hold for 15 years to realise gains.
If, and it's a big if, the RI goes through for the full amount listed, you'll be adding significantly to your IAG holding anyway.
If it makes any difference to you, Berenberg just lowered their target price from 375 to 300, still (obviously with that target price) rating it as a buy. https://www.lse.co.uk/news/IAG/berenberg-lowers-target-price-on-iag-retains-buy-rating-5rew6pcqjh558q6.html
Their logic is perhaps more compelling than some of the naysayers here. That word "consolidation" basically means they think IAG will use the money to buy up distressed assets.
I am still pretty strongly of the view that we're in a strong buying opportunity. But I'm not pretending it isn't risky. It is, and I'm not adding even though I think I'm probably missing an opportunity. I've learned to be disciplined on risk / exposure and if I take up the RI, which I fully intend to do if it actually happens, I'll have maxed out how much I want to be exposed to a risky share like this one.
But I can't possibly answer for you because I don't know how old you are, what's happening in your life, how much money you have here, how much money you have elsewhere, what your view on risk is, how risky your other investments are, etc.
Sometimes it makes sense to grab an opportunity and go in heavily. Other times, doesn't matter how good it is, the risks matter more than the rewards. I'm at the point in my life where the latter case is coming more and more into play. You'll have to decide for yourself.
In my view (and Berenberg's), if you invest more here it will probably be profitable, and maybe very profitable, within a couple years. But the risks are there.
DaggerMal,
It’s really your call on this one. Obviously depending on your average you want to be as low as possible, even more so the SP being as low as it is if you expect the market to pick up again.
You have two scenarios, you either average down now at the current low or wait until the RI price is announced (IF).
If the SP continues to drop then the RI would turn ugly and would put a lot of people off. Which would most likely see the RI cancelled. Reason being, you can’t keep taking negativity in to a stock and expecting it to be purchased through a dilution to its current share holders. This would be suicide.
On the other hand, you buy back now to lower the average in the hope the SP rises within the next month which means you’ve got a good deal, then if the RI happens in September, you’ll get an even better discount bringing your average down to an even better position.
I can’t tell you what to do as I don’t know exactly the movement of the SP/sentiment of the market at present.
Q2 reports are being released all over the market, one being banks which is driving the SP down along with Covid cases.
Personal opinion is aviation is taking a overhyped battering each day even though we know all bad news as it’s already been announced. This is because or earnings being reported around all industries, covid still lingering about with cases and shorters/traders making some money and pouncing on the blooded markets.
Covid is going on longer than everyone anticipated but will turn eventually. Let people get burned in the process. if you looked to invest in the company for a longer duration then ride it out as you haven’t lost your money until the company goes burst.
Negative derampers/shorters might say a paper loss is a sign of defeat, however, my intention during a pandemic was to buy in at a value during that time I felt was beneficial to my strategy of a long hold. Yes, in hindsight, we could have got in at a lower price, but hindsight is a great thing and no one can anticipate a market.
If you look at the lows upon the collapse of £1.60 on the 18th March, look how quickly it picked back up hitting £3.50, so anyone getting in around a £2.50 average was a great price considering the average SP of £5.30 pre covid and the highs of £7. Obviously not expecting those prices this year, I have my target price set that isn’t asking too much considering the pandemic. If I hit that, I walk away with a large sum that in my eyes has been worth the wait.
Markets can change so quickly and with vaccines on the horizon, airport testing and localised quarantines, it’s only a matter of time before the SP begins to rise.
Hi everyone. As mentioned previously I'm a newcomer to this world. I would love some opinion/advice from the more experienced.
Re SP at the moment would you advise myself to top up at this low level now AND take the RI allocation( if any).?
Or would you advise to just buy at the level now and not take RI.?
Or take RI and not top up now?
I'm a tad confused! I'm aware that it's my decision and I'm playing with my own money, so any advice is just that, advice.
Not been in this position before so would appreciate any views. Guys like TMT, DeanM, Portland,George , Id rather listen to you, than some of the others on here, who have their own agenda. Thoughts?