The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
I bought BT at £1 and Royal Mail at £1.27. Apparently you shouldn’t catch a falling knife. Admittedly I sold out of Royal Mail at £4.87 (sold to early again) but I won’t be selling out of this until it hits £7.50 about 5/6 years from now.
I'm liking your choice of stocks longtimeinvestor. I noticed you buying most of the stuff i'm buying recently. I'll keep a look out for you ;)
This is another good move. I watch all sky channels including BT sport using my android TV box (dodgy box) and VPN subscription practically free of charge. If I can do this so can everyone else. Where is the revenue to be gained from Sports rights / TV packages? It pains me to say this, but Rod is correct when he says network is king. The network is why I invest in BT, I couldn’t give 2 hoots about the TV side of things, BT’s TV offering is cr*p anyway. When a business realises that it made a mistake you don’t keep throwing good money after bad. You learn and move on. The general market appears to like this too.
Currently priced where it was 12 months ago, with the juicy dividend on the way and Gold / Silver prices rising this could be a good month for this one. Fingers crossed.
Regardless of whether the deficit is 7 Billion or 2 Billion the share price will rise. That's my prediction.
"I can recall a long time ago when BT shares were around £12 and I was about to sell when an analyst told me that they would go to £17 so I held on an saw it run down and down to about £1.20 when I sold last year".
So let’s get this straight, you thought about selling your BT shares when they were worth £12 but you didn’t because some analyst had a price target of £17. Instead you waited over 20 years to sell them for £1.20? Please don’t take this personally but that’s a poor piece of business. Are you really the best person to be advising others on what to do with their BT shares?
Get with the programme C3PO. We are going green and the plebs have to pay for it.
"It appears to be a 5 year period of (easier soft financial Firbe regulation) whereas a possible 20 year period was being mentioned with the possibility of something in between of maybe 10-12 years so just getting 5 years from April 21 seems disappointing"
Thats not how I'm reading it.
OFCOM are going to keep prices flat in real terms for products delivered over copper. Inflation will still drive these prices (superfast copper broadband) higher over the coming years whereas over the last few years they have actually been pushed down. To encourage Openreach to build out the fibre network there will be no pricing regulation for at least the next 10 years. This is good news for BT and the faster they build the FTTP network the more they will benefit in future years.
Reminds me of Credit Suisse issuing a forecast of 94p for Royal Mail weeks before the share price shot to the moon. Its mainly pointless drivel to suite their own agenda.
"Anyone sold any on this rally before ofcom tomorrow"
No, my biggest mistake has always been to sell too early. This has been in the red so long for me that if it drops tomorrow ill just continue to ignore it. I may get shaken out when we get a bit closer to my £7.50 price target.
Hallelujah! I'm finally in profit on this. Praise the Lord
"things aint what they used to be.
and they never will be again.
evolution get used to it.
unions always believe that the management want to steal there rights.
they do not it is just competition that drives the race to the bottom.
and we are all guilty of this as we all want something for nothing"
Absolutely Steve, we have become a nation of bargain hunters sacrificing quality and everything else for price. BT find themselves in a very competitive market with pressure from all angles to keep costs down and also upgrade the network at the same time. Someone / something has to suffer and if it can’t be the end user (consumer) then it has to be the workers. Its not like its just BT workers feeling the pain though, we shareholders have been absolutely battered. If you’d invested £100,000 in BT shares in 2015 /16 when the share price was £5 you’d now be sitting on £20,000 if you exclude dividends and we are not even getting paid those now. Disgraceful. I do feel sorry for the junior engineers as they don’t get paid as well as their predecessors and most jobs these days come with less superior terms unfortunately. I can understand the frustration and why they would strike but the UK and its regulators has brought much of this on itself. It is a ‘race to the bottom’.
Top of the FTSE 100 risers so far today. Go BT :)
Less business with China, Brexit, Import costs skyrocketing and BT onshoring all their customer services? Just saying!!
"Haven't seen any evidence of interest rates going up. Also how is everyone getting excited about BT getting to 4p above its 1984 launch price!"
HaHa...There was a rights issue in 2000 I believe so there has been some dilution since 1984 but it’s still a very low Share price considering the assets BT owns and the profits the company makes. We keep getting snippets of an improvement in sentiment. Fingers crossed the pension review and the OFCOM situation can remove some uncertainty and give this even more of a boost in the coming weeks.
Velo might still have made the right decision to sell if it drops to the low 120's however if it doesnt then i'm sure there will be plenty of time to get back in low.
BT like a raised floor so they can easily get there fibre cables underneath, the problem is when you lift the floor you may see the cables drop through a vertical riser and the drop to the next floor is much further down than you anticipated.
I use a similar approach to you Fleccy when buying shares. I buy and hold for a while until I get back what I think is a fair price for the company. I usually only start looking at a company when its share price has dropped at least 50% from a high. I then start to analyse why its dropped, if I think the reduction in SP is overdone I start buying in tranches, the tranches get larger the more depressed the share price becomes, some call it averaging down but I usually sell some as the price rises. You need to continually review the investment case and be prepared to sell at a loss IMHO. I also believe that BT is undervalued however we are losing money on paper. Velo is in profit here so that makes his BT investment strategy more successful than ours thus far. You can say it’s only a paper loss but with hindsight I’m sure you’d rather be investing at these levels than your initial entry point?
HaHa, good escape Velo. Your acting like a slippery eel not letting the market catch you out. I think I’m going to stop looking at my BT holding for a while (It’s too depressing) and buy a few more Verizon shares. Verizon are still paying a nice dividend too. Worth a look if you like your telecoms companies.
I need £1.46 to break even with 15,000 BT shares. I sold my RMG shares earlier this week so I'm tempted to spend a bit more here to bring that average down a bit .