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I was going to wait for 200 to buy. I don’t think it’s going to go that low. With the news of potential market volatility I bought today. I’m also reassured by the recent director purchase. I’m hoping that all the ‘bad news’ is out in the open and hopefully upwards from here.
Bought x 6 batches of shares totally £120k . Game ob.
well done nuri123a, keep up the buying, how many more funds do you have ?
good price action here. small volume though.
Hargreaves lansdown share price drop , is that good for cmc ? .
I don't think there's any bad news out there as such, it's just market vol. Also this idea that vol is going to return to the markets is over egged tbh, if anything I think it's more likely to reduce significantly as the inflation narrative fades. Also COVID worries will see risk sell off, so if you think vol is coming back due to that then you're better off selling before buying the recovery in which CMC typically makes decent returns. Will go to 200 and below over the next 3 months.
Don't you think that a 20k position roughly £46k on today's price is a bit of a weak allocation for a CFO? doesn't fill me with boat loads of confidence...
Hi Gordo - volatility does not need to return as if it's the first wave of c19 as it isn't.
All that is needed is a bit of turbulence which is what we have now.
Also need overvalued indicies, which we got.
Add to mix a bit of uncertainty, volatile oil prices.
I think there is enough happening already to say volumes have increased sufficiently to make a difference.
So defo if it hits 200p I consider that incredible but market are a little foolish at times, and knee-jerky.
I would say now is a good time to accumulate, got enough turbulence for it.
gordogecko, Maybe cmcx will go below 200p, no-one knows, but with increasing market volatilty, good profits, virtually no debt and profit base growing, cmcx should be one that increases in market value. Also, Lord Cruddas who owns 62.5% of cmcx, is starting a review soon re splitting the company broadly into one for CFD Trading and one for Investments which would increase the whole market value based upon 'sum of parts' principle. So whoever is selling either knows something negative we don't or is misinformed.
Hey Clued, yeah I think maybe best to take a look at the macro picture here. Even when companies are financially sound it's common for them to sell off due to macro headwinds, in this instance risk is quite likely to come off the table over the next few months as the fed starts tapering and UK/US rates start increasing. Reduced inflation and a tightening of cheap cash means people will look to sell. Completely agree that this is a good buy in the long run, just not at these levels given everything else that's going on.
Hi gordo, yes the Macro status affects shares, but, as volatility increases and shares fall, shorting increases so cmcx will benefit. Also, without debt, cmcx will not be exposed to interest rate increases and its sp has already fallen substantially to a level which is lower than it shd be vis a vis profitability. JPMorgan forecast recently that FTSE100 will rise to 8100 next year though that was maybe generated pre-O variant knowledge, I realise cmcx is in FTSE 250. My avg is 277p and I'm holding as a LTH so good luck to all who hold. One possibility is that Lord Cruddas sells out and, if that's annnounced, the sp will blast off given how low it is.
Rates go up, risk comes off which will suppress equities, hence why I expect this to sell off here. Also will increase funding rates for retail traders, albeit not much...
Rates affect the whole markets, to say it has no exposure to rates is a little crazy. To reiterate my view, fully agree this is a great long term hold, but lack of volatility as risk comes and investors sit in cash for extended periods will see prices come down. Fully expect this to happen but that's just my educated guess. Of course I wish you good luck, just make sure you're buying these dips to average lower.
isn't the Current volatile situation what needed for this type of companies to make profits? I think there will be plenty uncertainty still regarding the covid and world business offering plenty volatilities , especially Xmas is coming , many people will be sitting around to trade stocks etc.
into the 10th day since the big crash on this share now
bottom SP seems to be stable now and the chart is looking better for new interest hopefully looking to rise again GLA
So Dow is selling again!
Tomorrow the ftse will follow like a dog on a leash- down she goes just like the daddy ordered.
So Cmcx, plus, IG are making a killing.
It’s incredible some here can’t see that?
Oh well, it’s not problem. All the best to holders!
If these are not favourable conditions for CMC IG Plus500 etc etc I don't know what is. I have confidence in Cruddas steering the ship. Price is stabilising now
There was what I believe it to be a little dragonfly doji yesterday which typically indicates a reversal when it appears at the bottom of a cycle. Not very strong. The more technically minded can inform
Not into Dragonflies contrarian, but much of the reason for the sp drop here was cited as a loss of volatility. Well, Volatility is what we now have so why aren't the sellers who sold this babe not buying now ?!!!
There should be a little lag @Clued. At the moment everyone is thinking I suspect where to run and hide not where to invest. In terms of share price we have been scraping the support line for a few days. Once sentiment improves this will bounce.
Contrarian123 - absolutely correct, as I pointed out in my other posts the macro picture is what is driving this right now. Once money comes back on the table this should perform well.
Make your mind up is this going under £2 or not !!!
In my opinion yes, check my posts. They all have 'sell' as my opinion.
As @Contrarian123 mentioned, this is likely to keep dipping as the macro sell off takes place before we see reinvestment to companies with decent balance sheets, such as this. Chill your beans dude.
Hi contrarian, I'm not looking where to run and hide and I remain near fully invested in over 20 stocks with avg div of 4%. JPMorgan also is optimistic re 2022 stock markets, especially Asia, Europe and UK, so not sure what you mean. A little inflation can be good even if banks also increase interest rates a little to counter inflation. The current price increases are largely driven by shortages and fuel increases and won't continue at the same high pace in 2022. Maybe your scenario relates to those with leveraged investments and other material debt ?
@Clued, 2022 is 12 months long, so it's quite possible that people are waiting for better levels before getting in. There's still a lot of uncertainty around the equity markets which is keeping money off the table here.
Also CPI doesn't account for much of what true inflation actually is. Building materials a good example which are up in the top double digit %. Also banks don't increase rates to counter inflation, the central bank does which forces banks to do so too. Nothing wrong with holding this long term as it will come good, but it will continue to sell off before it goes back to the 270ish level.
Gord
Have you any share in this company ?