Defensive Buying - Week Ending 3 March 2017

Monday, 6th March 2017 10:23 - by Moosh

The number of shares in a defensive buy is dictated primarily by the asking price and the buy/sell commission that you pay – for simplification I will assume that the buy and sell commissions are the same value and will provide a maximum number of shares to buy for a single commission of £5.25, £7.50, £10.00, and £12.00. if your commission is not shown here, then round up to the nearest commission level and use that as a potential maximum number of shares to buy, assuming you are happy with the fundamentals at the latest time and price given. I will be adding more companies to the Defensive Buy list when they are ready to appear on it and NOT before!

Another defensive buy from Metal Tiger (MTR) this week:

Bought: 21776 shares MTR (2 tranches)

Total cost of purchase: £410.92

Return after selling cost: £440.94

Return on investment: 7.3%

Incubation time: 16 days

Next example this week is defensive buy for FTSE 100 listed company, Capita (CPI), which I invested for the first time following a duff trading update few weeks ago:

Bought: 130 shares CPI (4 tranches)

Total cost of purchase: £696.62

Return after selling cost: £717.80

Return on investment: 3%

Incubation time: 57 days

Total profit from defensive buys (rounded down to nearest pound):

£8 (GSK) +£7 (BT.A) +£50 (ARS) +£4 (OMI) +£81 (ARS) +£20 (OXP) +£6 (ARS) +£118 (PLUS) +£7(DLG) +£14 (MTR) +£24 (7DIG) +£30 (MTR) +£21 (CPI) = £390

The Writer's views are their own, not a representation of London South East's. No advice is inferred or given. If you require financial advice, please seek an Independent Financial Adviser.