Member Info for Henrythecat

Just be mindful there is no such thing as a free trade. You are paying for it on the spread offer. If you are buying small and often not too much of a problem but some have been fined for front running

The long term view for this share is obviously up , but by the very nature of the business and how the pandemic affects sentiment there are always going to be volatility around the news feeds.
A slight worry I have in the short term is the world vaccination role out - it’s good that the U.K. is progressing but if it does not stop one from passing it on where does one travel to?

Be careful with theses. Sorry if I’m teaching you to suck eggs but they are designed for day trades and the fees are very high. Take a look at their ‘ what you could get back chart under different share movement scenarios. Not what you would expect

Possibly not.

In 2009 it was subject to the country's biggest ever cash-call with 36.5 billion new shares issued. The only way is if they embarked on a long term aggressive buy back scheme but that would be to the detriment of dividends and investment

Even with professional analysts the picture is murky.
Averaging out 20 companies forecasts they have RR at

High - 157
Med - 95
Low - 42
This is identical to the FT figures assume from same source

I think this share is a good example of what I call duel opportunity.
I have put a tranche away in my long term investment portfolio but also have (had) a number in my short term day account as the volatility makes this type of trading quite profitable.
I’m out in my day account for now but it’s anyone’s guess where this share is heading short term.
I would add I’ve been doing this quite a while and if it was as simple as filling gaps and studying charts we would all be billionaires

I think it’s very difficult to work out how this share is going to perform apart from saying it will be up and down.
Forget the fundamentals it’s being driven by sentiment and virus news that is out of its control- considering the Terp this share is holding up quite well. If I were holding I would be a little apprehensive about how the world vaccine role out is going and governments pushing back opening up restriction dates.
I’m of the view that it may drop further before a sustained and meaningful recovery.
I think this will be a swing traders share for at least another 6 months but obviously this is just my opinion.

They have restricted the purchase of 50 stocks RR being one of them.
One way of looking at it is they have identified RR as a stock that fits the profile to be shorted and is being shorted. Obviously that is not a good thing if institutions are betting that the SP is going to fall.
There is the Reddit effect but I’m not sure millennials would rally to support an engine and military defence company.
But I’m sure it’s just preemptive and the restrictions will be lifted

Taken from their website
——————-
Amid this week’s extraordinary circumstances in the market, we made a tough decision today to temporarily limit buying for certain securities. As a brokerage firm, we have many financial requirements, including SEC net capital obligations and clearinghouse deposits. Some of these requirements fluctuate based on volatility in the markets and can be substantial in the current environment. These requirements exist to protect investors and the markets and we take our responsibilities to comply with them seriously, including through the measures we have taken today.

Starting tomorrow, we plan to allow limited buys of these securities. We’ll continue to monitor the situation and may make adjustments as needed.

To be clear, this was a risk-management decision, and was not made on the direction of the market makers we route to.
———————-
I think they have restricted many of the most shorted stocks to prevent another Reddit effect.

I bought in at 94
The cash burn is high but they have easily enough money to get through this world pandemic. The only downside for me is the growing chatter about shorting the stock.
It’s crazy that professional analysts rate the same share from 42p to 157p something is not right.
In 12 months I hope my purchase will look like an absolute bargain.

Unless you are swing trading or spread betting this volatility means nothing.
If you take a long term view and hold this share within a mixed portfolio you will do very well.
It will not be a stellar performer but I can see it reaching £2.50 over the next 3 years

For disclosure I have sold out of all my short term holdings over the last month as I have an investment strategy that is based purely on % profit.
I do feel that RR , IAG and others are priced on what may be instead of current real value. This may be fine for RI’s but institutions are more regulated this obviously results in large swings.
In my opinion , if not swing trading , these shares are best put away for a very good long term investment , if not one will go mad trying to time the market.
The only negative is if the defence arm is separated out and sold off which would be a disaster.

We have - but we are still in transition so not much has changed- what will happen to the financial institutions if they can not agree /renaque on financial passporting. They have already said brass plaguing will not be sufficient to gain market entry.
This is more off a threat to banks than Covid

It’s been a lifetime of grief - my wife worked for them and she used to get her bonus in shares and participate in the salary share scheme. I can remember them being £42 before the 4 /1 split and also when they touched 40p in the financial crisis. An emotional roller coaster!

Sorry 135 getting mixed up with IAG

I suppose it depends on your investment strategy and whether you are looking to build a long term portfolio. Speaking personally I too bought in at 90 but I sold out a few days ago at 145 the profit was just too tempting.
I used some of the profit to add to my Lloyd’s holding (no recommendation)
CGT - have you got ant ISA allowance left?

If you are playing the markets I think hold off as there is still going to be a lot of volatility and it will still be possible to trade the graph.
If looking for long term investment then it does not matter too much. This share together with a couple of airlines will turnout to be a very profitable long term buy.
IMO

I think one should still be careful with this share. For disclosure I sold out today at 1.445.
The vaccine is certainly good news but be mindful it was a press release. Hopefully analysis of the full results will be just as positive - but to get the world travelling again will take sometime.
Lots of battered shares roared back today but I think a lot were over bought.
I imagine IAG will be significantly higher when this is all over but I still see a few notable dips en-route.

Totally agree - I have a long term portfolio with blue chip , dividends paying stocks and a mixture of bonds , started 30 years ago.
I also have a higher risk diversified one and finally a separate one for day trading and very high risk ( gambling ) PMO fits into this one . I currently do not hold PMO but have day traded it a couple of times making roughly 5% each time.
If I did I would vote yes if not I fear PI’s will be wiped out.
Don’t let this experience put you off - learn from it and move on.

Castle
Thank you - a bit of luck to start with went in quite heavily at 168 and sold out at 218.
I’ve then been riding the up and down wave before ditching at 216 before rights issue. It’s really addictive I had a plan not to get in again until sub 75 but had a rush of blood. Not too much damage as managed to get out quiet quickly.
I really feel for investors who rightly supported this good share before the virus as I think it is going to get really messy.