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Why deflect from a discussion of Mary's interesting strategy with an antagonistic (no offence) personal comparison Darren? She has taken the trouble to provide lots of details, so why not consider them, it could be informative. By all means disagree with me, but it is a boring discussion if you fail to even address any of the points raised
Blahblah - no offence but your analysis of Mary's strategy belies your lack of acumen more than hers....
I like the averaging down idea, but I think you may be overselling it a little. For one thing, it seems like quite a lot of work, monitoring the price constantly and all that dealing! ( : The closing price has only neared 564 twice in the last 3 months, yet you've done twenty plus trades, so it seems likely some of your buys must have been at a higher level. Your selling range also seems quite variable, you've mentioned 620, 610 and now 600 and 605. Finally, there is a more than even chance that the pattern breaks after you have sold around 610, because its more likely to break upwards than downwards, imo. That would leave you with 70% of your holding out of the game when it matters most.
Nevertheless, I think you have chosen a share which seems to be conducive to your strategy, so if it ain't broke, don't fix it!
70: 30
eg
per 1000 @ 564, approx cost £5675 incl stamp & comm
Sell 70% Keep 30% at 605 = £4229 net of comm
Left with 300 shares averaging 4.80p each.
Different quantities different ratios larger moves many sell less and keep more.
Build and average down works for me.
DYOR
So true 560 570 buy, reduce above 600 605.. not selling all. Rinse repeat and keep on racking.
The longer this goes on the more I pick up. I keep my average below £5 post each sale. When this hits £7 or £8 , I hope to be richly rewarded.
DYOR.
GLA
It's the gift that keeps giving Mary :)
Sage obviously looks better on days like today when the in form hot stocks tank...
and they marched it up again.
FWIW
I would not short Sage at these levels at someday a bid will be announced for this cash cow.
I will sell at North of £10.
GLA
and opened long from 578 - £1k a point so let's hope this turns!
Thanks. I added yesterday on the basis this must head back over 600 and sustain a modest increase - one fine day.
I'll buy back a few at these levels - see it that helps :)
The buy-back of shares doesn’t seem to be doing much good, unless the sp would otherwise be doing terrible without the ‘support’...
Thanks, I hope so too.
GL with your trading.
I sometimes run positions on where I feel that there is further to go eg SSE bought this Mon, prob reduce tomorrow depending on rise
or news driven eg SPT - further upside into dividend.
Always averaging down when possibly works for me, not everyone.
Seem to miss the clunkers or at least can average and trade out of them nibly enough until it is in my favour.
SGE SPT BVC give great opportunities in the tech space for me.
I am sure there are others too but I feel that these one suit me.
Thanks Mary. You are very disciplined to sell @ 610 (or 620) when the price is rising! Well done for spotting the opportunity and calibrating the range, hope your winning streak continues.
:) At least not until we have filled our boots. £7+ coming this year - sometime! DYOR
Very much working as per Mary's views.
Sorry now that I got in quickly on the director dealing at 286 and out again on a limit sell with 295 before having a proper look at the long term game.
Yes this is a good opportunity here to ride the waves, and even if the price breaks down, be relatively secure in the knowledge that it's a decent dividend paying, profit making company anyway. Don't tell everyone! :)
Yes from 20 NOV 2020
Popped up alert on the large fall.
Went in gently, bounced fell flounced added.
Shot down shot up - lowest purchase 558p. Hiughest entry 610p after going in at 594 initially and then thinking the bounce was in.
2nd purchase wrong call at the time, but was happy to hold.
20 trades in total.
Trading in an out, always improving average or increasing holding.
Buy on weakness sell on strength - seems to be 560 to 620 atm range.
£5.95 commission on all trades. Stamp duty is just one of those things.
Congratulations on successful trading Mary. With a range of less than 10% you've done well taking into account dealing costs, but Sage's small spread probably helps. According to the charts your range didn't apply to most of last year, so have all your trades been recent ones?
This is a no brainer to add to on any dips.
I hold a core of 5k shares and trade opportunities to average down. I am heading to zero cost so may join you in a double up on the next big sell off.
Makes sense to me.
GLA
DYOR
The buy back news spiked the price and interest in the share. Not sure why it was news as it was already indicated in the results.
Lightened up a few yesterdayand may prove right or wrong but great for trading.
Long term this is sound but trading opportunities to improve averages is never a bad thing [my trading range 560 - 610] but see £7-£8 in the next while at some point.
DYOR
I have doubled my holdings today at 597.6. Good company in the north east, Im happy with the valuation and the growing dividend, but the cherry on top is the management team think this share is undervalued and are buying back the stock, which is a good use of the cash in a growing economy. I dont know if they benefit from Rishis 5k give away, but the fact that the management are buying it suggests it might do.
The Chancellor is to launch a GBP520 million initiative to support small UK businesses with training and software in this week's Budget.
Rishi Sunak said the Help to Grow scheme could help 130,000 small and medium enterprises become more productive by providing access to some of the UK's top business schools.
The Treasury said that firms will receive expert technology advice and discounted software, as it aims to spark innovation as the UK plots its recovery out of the pandemic.
I wonder if Sage is part of this?
LTHs might see it as a positive, because retaining market share and brand loyalty is ultimately more important than the margin or SP, which can both be recovered faster and easier. Eventually! Admittedly, it was a defensive move, but surely appropriate during a pandemic. It may not be long before the numbers show this was a relatively short term measure with long term benefits, with unprecedented vaccine programmes and warmer weather hammering the virus right on it's spike.