Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Btw I am planning to hold this long term (5 years at least) so that's why I am not worried. If you are more short term on AZN I agree there is a lot of opportunities out there to make money quick. Hence why I haven't averaged down a lot recently and started new positions in dips for other stocks instead (as Astra takes up 15% of my portfolio). My mistake was not rebalancing earlier down to 5 to 10% as the Alexion news took me by suprise, then topping up so now don't want to give cash reserves to averaging down as I know it will take a year in my eyes to recover (will take the divi then to soften loss!)
Also remember Astra is not the only big company to suffer a 10% plus drop. Apple, FB, Tesla all has (and Apple had a blinding trading report). At the end of the day all these big companies produce sth of value (unlike Bitcoin), so time and patience will see macroeconomic and takeover pressures ease. The stock market always overreact whether its down or up in times of correction, depends how confident you are in what the company does and the balance sheet.
A few reasons:
1. The vaccine expectation has finally died. There only reason it went up to like top 90 plus so quickly was due to the vaccine hype. Until it is actually for profit it is not relevant. It has given Pfizer and Moderna to be more attractive investments short term.
2. Downward pressure for the SP even since Alexion deal announced. Driven it from 80 ever since. Worries about level of debt (until the effect or EPS generation from Alexion takes hold which will be a good year at least or 2)
3. Macroeconomics. Pound strength meant your big caps like BATs, Unilever etc naturally going down, and now the global outflow with equities with the worry for inflation.
4. More tempting opportunities at the moment. E.g Teslas and Bitcoin , recovery plays.
These downward pressures have driven the share price down regardless of the financial report so compared to last year I would say 70 lv is fair price for now. As the economy settles, it will all correct itself, hence why I am saying 80 end of year (not optimistic as some brokers saying 90)
Before the pandemic it was mid 70s. It has since doubled its profits, grown its EPS and has a potential in the future to charge for vaccines when the pandemic is over. Its pipeline is also in fruition with its drugs being approved for more indications around the world. Therefore it should easily be valued at 90, but the takeover of Alexion has probably lowered it to 80 until it reaps the benefit from more increased EPS from the Alexander pipeline. That's my opinion anyways!!
Yep agree sitting on your hands is the right thing when there is a global outflow! But couldn't pass up on topping up some of the tech stocks and balancing my portfolio with my reserve. (I have too much FTSE and big cap stocks, not enough tech)
Agree, it's the whole world worrying about inflation ad bond yields so it's just a general take market out of equities. AZN has not been as hard hit as FANG stocks which are recovering now anyways. Once the correction takes place value stocks will be in favour again.
The FTSE is down 2.5% so the drop isn't alarming. The NASDAQ is recovering now so I expect a bounce next week. Holding it definitely, I got reserves to buy the dip in the NASDAQ Fang stocks and we know this isn't AZN true value
I recommend to buy but start slowly. There's a focus on recovery stocks and commodities like mining. Tech stocks and pharma is not attractive at the moment but at the price it is a good long term investment. Should be around 80 at then end of the year
No you had to hold it by the beginning of today. Its too late to get it now if you buy now. But the price is usually lower after ex divi so if you want to invest in its usually a good time after ex divi
Here we go again. Would I call CNN a credible source when the US has been trashing the vaccine? Not on Reuters or any of the IG stock platform news.
And this is pretty not relevant now as the EU have sorted the row with Astra. Considering Astra is the only one to hold its share price compared to GSK or other FTSE big caps i think that speaks volume.
Unilever is too big to go to 24. It is still a good business, just less attractive with its forecast. Depends how defensive you want your portfolio to go, the drop was too harsh for it as well.
Tomorrow can go either ways. But BAT has resistance around the 26ish mark. If it drops more will top up. Considering its near a 10% yield even if im down a few % I still gain from the dividends.
Its massively undervalued. Similar with Unilever, once the company does not mention double digit growth for next year it takes a whacking. Market is at the moment quite concentrated on recovery stocks and riskier bets. BATs is good long term for the dividend (where will you find a near 10% yield!) and the price will recover once market normalises from recovery and risk taking.
Other stocks simply offer a quicker return at the moment. The last few days the recovery stocks can make you more money. E.g Argo blockchain, and retailer, BP, Shell, miners.People will come back to Astra once the opportunities and everything settles.
Its struggled because recovery stocks are more attractive at the moment for quick gains. For example I put money into WH Smith which rose about 8% in one day and then sold it. No doubt long term it will build up again once the market settles.
They probably made their gains doing the short run considering the SP was up 3% first thing in the morning. Its a FTSE issue as I guess stocks not exciting here when you have the likes of AirB&B reaching all time high in the US and valued more than Booking when they are not earning profits!
Not many retail investors in the UK too I think.
What if the pound goes weaker (I know thats unlikely), but companies cant expect to account for the exchange rate for their dividends. In that case you will find most companies in the FTSE have diminishing dividends