Member Info for Paul2566

Blue
I think the prices for AV., MNG, LGEN are good at the moment if you don't need to access the money in the near term.
AV.B are not bad, no real capital gain but slightly safer dividend. I hold all four of these.
GLEN, RIO, AAL are not bad at the moment and I suspect will do very well over the next 10 years. I hold two of these.
REITs are often overlooked, I hold PHP, but am also watching THRL. I hadn't really considered REITs until about a year ago and like their simplicity. The two I have mentioned are related to healthcare so are a bit more predictable due to their customer base and occupancy levels.
I must confess that though not exciting I do like a utility, I wouldn't say they are cheap at the moment, but probably around fair value. I hold NG. and UU.
HSBA isn't cheap but again I think its fair value. I like this as it gives me exposure to Asia, which I see as a huge growth sector in the years ahead.
A bit of phrma is good so I hold GSK. and HLN. The jury is out for me at the moment but I think they will do ok, and GSK has a better pipeline of products in development now.
I've always been a fan of ADM and have done very well indeed in the past, although based on SP alone its showing me in the red, but not a bad price to get in at, although as you said its another insurer.
I hold FSFL, and CLIG, might be worth a look, but as always DYOR.
As a left field speculative high risk/reward stock I hold KOD, ALL, BHL, and CUSN. Two are unlikely to see any great gains for 2 to 3 years (if ever) and two are looking at having real potential in the short to medium term with potential very good longer term gains. I wouldn't however put anything in them that you can't aforrd to take a hit on.
I know its not much help but it may prompt you to research something you hadn't previously looked at.

I don't really understand the issues some posters seem to have with LGEN.
It's a well run business with defensive qualities.
It pays a reasonably dependable dividend which is above average.
IMHO it is the type of stock that every investor should have as part of their diversified portfolio.
It is not a stock that is likely to see huge gains in SP.
If you buy this below £2.40 with the intention of holding for 10+ years, its unlikely that an investor will not see a decent return. I have bought at prices from £2.03 to £2.88 and I hold 19428 shares at an average (including fees/tax) of £2.3602.
I will continue to add, but now tend to buy only when it dips below my average.
I rate this stock to the point that it accounts for about 14% of my portfolio, which while I wouldn't suggest this is a good idea, does show my confidence in the company. Generally I try and limit my exposure to any one company to 5% of my portfolio.
The sector is taking a beating at the moment but that will change. However any investor who has lost confidence in the sector, a company or a BOD, should sell and move on. To do otherwise is foolish at best.

I can currently buy for 25.968.
Why the drop?

Sale just to cover tax liabilities, not uncommon, basically no news.

1.1% is hardly a nosedive.

I cannot find any shorts open currently. Shorts of any amount of note have to be recorded as part of the FSA rules.
These can be researched online, but I'm confident there are none at the moment.

I had around 5000 shares in BP. until recently when I sold (average was just below £2.90) Have only retained 447 shares. Re-invested the rest elsewhere.
I will get back to BT. when I think the time is right.

Panini
In part I think plus its XD.
The price could do either, if anyone knew that answer I suspect they would be too busy to type here.
FWIW I think anything below about £1.85 is a good entry, most of the last 12 months has been spent above that, with most of the last 24 months being spent above £2. Of course that dosen't ensure the next 2 years will be the same.
I believe a realistic long term price above £2 is likely, so I'm holding. If MNG didnt account for about 11.7% of my portfolio I would add more. But I will probably reduce my holding by 1/3 next time we see £2, just to spread the risk.
I'm even more overweight in LGEN so again I will move some of that to spread the risk, when appropriate. It happens every year, I keep adding to good stocks on the dips, and by the end of the tax year everything is a bit unbalanced.

Morbox
I agree that quarterly dividends are nice.
The US bank saga, and Powell are I think responsible for the OTT drops yesterday and today, I think that part of the fall in SP is just a blip.
I expect these to return to £1.90-£1.95 fairly quickly, and if no other nasty news drops probably £2 by mid summer.
I hold just shy of 20000 of these so looking at a drop today of £3k was a little odd until I realised it was XD day, which accounted for about £2.6k of it.

Not really.
When a company loses value by paying dividends its SP usually reflects this. The company generates profits and its value rises again. If an investor decides to re-invest the dividends their value remains in the stock but their holding increases. I really don't see the problem.
A companyhas 10000 shares, and is worth £10000 (SP £1), including assets, cash etc., and I own 1000 shares of the stock (10% of the company).
It pays a dividend of 10p per share to me from its cash. The company is now worth £9000 or £0.9 SP.
I buy about 8 shares acounting for fees etc.
I now own 1008 shares worth £907.2, however I now own a bigger slice of the company.
I will see the reward as the company accumulates cash and the SP rises and I will receive a larger dividend next time.
If I have picked the right stock over time I should accumulate wealth.
The alternative is sell pre XD and buy back at the lower post XD price. It works for some stocks but personally is not my preferred option.
Just confused by your comment.

I sold BP. in my ISA taking a bit over £9000 gains and bought another 9219 shares of LGEN at £2.3284 (not including tax/fees) today.
I've held LGEN for a few years, and it has served me pretty well through the ups and downs. It may well fall lower but I have missed out before due to greed.
I think long term anything below £2.4 is reasonably sound, and I do so like the dividends to re-invest.
Its pushed my average up a little to £2.3602 (including tax/fees).
If I were braver I might have waited a bit to potentially get lower, but I'm not.

It really is difficult to reason with an idiot.
Why do people still read posts from mr008 and give it oxygen.
All I see is a sea of green posted by mr008.

I think I'm correct in saying I'm looking at a 10 year low on screen atm.
I can see why this may be tempting now, but as a recovery play it needs the bod to show some intent.

I would consider adding below £4.5, although I don't intend do at this moment.
Anything below £4 would be a buy for me as I believe thats an incredible entry point, but I don't see any reasons at this time why it should reach that level.
My current average is £4.126, and I'm more than happy to hold at that price. If I had more free cash I would like to increase my holding, but I don't so have to put the money to work elsewhere.

I would like to see a small reduction in the dividend to account for this. It would only need to reduced the dividend per share by around 0.64%. The dividend forecast is I believe 7.12p per share, so it would only need to drop to 7.075p per share to account for the windfall tax. Maybe less as the battery storeage side is unaffected by the windfall tax. I can't see shareholders making too much fuss about such a small drop.
It seems like a simple way to negate the issue which is caused by no fault of the business or the BOD. The business itself is just as good as it was, and I see it doing well going forward.

robleo
I'm afraid I echo your sentiments.
I've only held this stock for a couple of years. I hold 9732 of these at an average of £2.8222 (ouch), and even with the dividends it smarts.
My only saving grace is only 4282 of them are in an ISA, so I can use the loss against CGT if I choose at some point in the future.

mjones231
I think you may do ok with this at that SP over the longer timeframe, but I have lost a bit of faith with the management so amongst other reasons do not intend to average down on this stock. £1.67 for a business like this seems madness and I can understand why you have 'jumped in'. I expect it to potentially drop a little lower in the short term, but like I stated, if you are willing to wait you are likely to be in a good position to harvest the dividends in the years ahead.

I have 1500 of these at an average of £24.7233, so it stings a bit, including the dividends reduces the pain a little.
I am not going to average down, simply because I don't want to go over weight on this stock, so for myself I'm just going to let it be.
I think (or perhaps just delusional) that eventually the SP will climb back up, but its going to take a while.
While I wait hopefully some level of dividend will be maintained, although there is little doubt it will be reduced from the levels I previously enjoyed.

Roofer61
My post was in response to your post, but it wasn't intended to be aimed at your credibility, or any kind of slur.
I just don't trust the press to tell whe whole story, they just like headlines to improve circulation/read hits.
Thanks for your response and hope you didn't take my post the wrong way, which having read it again, it you could have through no fault of your own.
ATB

Roofer61
Typical press half trues.
It is UP TO £3600 of free shares, I suspect the majority of employees don't see near that.

TheTrotsky
Thanks for the reply.
I have kept under the CGT so far this tax year, but with the lowering of the CGT allowance over the next couple of years I expect to encounter tax charges, hence I'm looking in more detail about making use of any CGT loss I sustain.