The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen 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.
If you study the stock market and have the correct platforms to do so you will be able to ascertain where the AT trades came from and that would give you an indication of who is doing what.
I choose not to do that, I just look at the patterns. I’m not here to mud sling and would point out
that my strategy is to allow 3 days once a share as stopped falling to wheather or not I then increase my position. There seems to have been a ew buys yesterday but I’m still not sure
that it presents a clear buying signal
Finlay1, I have been building my portfolio for the last 40 years. Traders in the old days were "blue buttons" - well before "Big Bang". High volume, high frequency dealing has only really been around for a couple of decades but has been adopted by those claiming to be traders through Contracts for Difference and other leveraged instruments. Most, according to the disclaimers on their advertisements, lose money.
A trades (those trades that are consequent on the use of an algorithim) are sometimes used by fund managers running substantial funds. They have an agenda, either to accumulate shares at a lower cost or nil overall cost, reduce holding so as not to disrupt the market or lastly to provide liquidity.
That you are involved in the supply to constructions is of high importance to the debate. But to claim that traders effectively walked the price down (and, by inference, probably up) is pretty ripe! And further that this is through US hedge funds is fanciful.
Finley
I take it you've concluded after due diligence that you are an above average investor. As you are employed within the construction industry is your expertise confined to this sector in general and Ibstock in particular or does your expertise extend to all sectors?
The share price got to 240 stayed there for a few days and gradually lost momentum, sold down each day look at the AT trades if you don’t understand. Traders good ones took the right call and have been selling it down since then, that’s how it works. Long before the gas debacle, they would of looked at impending recession interest rates and inflation .Honestly your average PI is so far behind the curve turning up a few weeks later and trying to work it out, it’s laughable.!
I can’t really be bothered but ill tell you. It’s nothing to do with gas. It’s positions being sold
down and rebought, via hedges under the threshold US ones or existing holders turning shares
looking for liquidity. Honestly, do some research, it’s the same curve as the house builders, it’s year end and traditionally poor, add a bit of uncertainty going forward and it gets put down. I supply housebuilders we are flat out. So either buy some more or sell and put your money in the bank. Shares are not for everyone
Those experts claiming that furlough is the cause of weak share prices are, I fear, peddling nonsense. Inflation is the problem at the moment, coupled with soaring cost of gas.
Today, though a competitor company Michelmersh is down and IBST is up - neither is doing particularly well to be frank.
Although traders get awfully excited about short term movement, investors accept that prices rise and fall, moods change and short term froth is blown away as long term strategies play out - strategies from the past as well as those considered for the future. Construction tends to slow down in the winter months to allow stock to be created, stored and prepared for distribution.
Cannot pretend I am content to see the share price where it is, but am not unduly worried that my investment is currently slightly under water.
M55 rtn.... good information that, settles the nerves a little, well researched
I read the annual report, and they say they hedge their energy costs, so it might not be an issue for this financial year.
The solar panels will obvisouly be helpful tho - might prompt them to add more where they can
"Ibstock’s first solar park was installed at our head office in Leicestershire.
With three manufacturing facilities based here, the solar farm provides
between 20-30% of the site’s normal electricity demand. The solar park
went live in Q2 2020 and generated circa 2.1MWh. "
I agree, goolang. Nowt do with furlough, industry demand or delivery hassles. All down to gas prices - they must be crippling. Wonder if production can/will be cut back significantly. Either way, we’re going to take a hit on profits and SP unless Boris does something useful for once.
The last 3 months of this year wont be too dull
It’s none of the below. It’s because of the end of Furlough and the city forward thinking that we are entering into a recession. therefore, the algos are marking the share down. Next year will be
interesting. !
It could be because of the natural gas prices going up dramatically. IBST need plenty of power for their factories.
construction pmi woeful. all construction or build related getting it in the neck today
See todays Alliance news thread Supply chain and labour shortage woes hold back UK Construction industry. That will be the reason for the fall
What is happening with Ibstock as the price seems to be inexorably dropping even though market demand says that this should be rising as demand for bricks and cement increases ?
Followed suit and topped up at 200 at the close
totally agree. drop overdone and IBST have access to their own clay pits!
Couldn't resist the price, so bought some @202. Feel the drop is overdone and a decent bounce is due. Just a hunch. Anyway, if not, long term I have no doubts of a strong upside here.
The whole market is down at the moment. Still believe this is a good long term hold. Can't wait for the next trading update with moth balled factories re opening. So tempting to have another top up at these prices
That's what I was thinking, but not if there is an underlying reason. Perhaps it's just cyclical trading that's pushing this up and down?!
This game baffles me. Forterra gains 4.5% today and Ibstock loses nearly 2%. At £2.03 it appears to be an irresistible top up at 18% down from the high of a month ago.
Is the recent drop due to gas prices and driver shortages? Or have I missed something?
Would think the low pound would make imports even less competitive against homegrown bricks
Marshalls also are running out of stock.
Steady progress. Marshalls last week reported excellent progress and increased orders with an upgraded broker forcast ; citing the improving construction market. No reason why this shouldn't follow towards 300p, Marshalls are almost back to pre covid levels so I've every confidence in Ibstock and a dividend due in a couple of weeks.
If you feel that buying shares quoted on exchanges other than London is not for you, it might be worth considering Scottish Mortgage Trust. Aside from an excellent past track record ASML is certainly in their portfolio. Shares in ASML are fairly pricey at approx €800 each.