Member Info for Temple_of_Doom

I've seen it happen quite a few times in the markets.

"Averaging down is a mistake we see all to often from posters on these boards.

Only hindsight traders catch tops and bottoms."

... are contradictions. because of averaging down in small amounts will eventually catch a bottom.

Averaging down is fine, so long as a share goes back up.

Stocks fall for a reason ... people are selling, be it share borrowers or share holders.

The UK market is still heavily over sold compared to peers ... that's poor Brexit management and poor CV19 management from this government both of which have an affect on GSK.

Blame the Brexit numpties ....

2022 is a long way away for me .... and have done well out of this share.

Good to see 80p break

??

Yup .... Agreed!

Where does growth come from with this share?

"Which results in:
Annual dividend of at least $0.10 ($60m) = 9.5% yield
Price to earnings ratio = 3.4x"

10% is taken off for Nigerian taxes from the dividend so I make the current yield 8.26% and while excellent not as attractive as it was ....

So I've started selling more recently in 5,000 shares versus £5,000 lots before that ... and I'm done selling at 79.44 today .... 25K free shares in the account and slightly over the same number in £'s as profit ... so with any luck, the dividends will pay my annual petrol costs and half the gas bill going forwards - what with trading since December 2020 my sell average price works out at 86p and good enough for me.

The down side to this share the past 6 months was hedging oil Q4 of 2020 and Q1 of 2021 at $35 a barrel which will reduce revenues somewhat (see earlier results) - and I assume one of the reasons the last CEO went back in August - struck me as panic.

I like this business - but there are risks and as such I will go in heavy when really cheap - but happy to hold a comfortable amount now.

GLA

munchbox54 Premium Member

Posts: 3,394

Price: 52.80

No Opinion

"Depressing12 Aug '20
Seriously this is now turning in to full blown depression.
I guess temple is still happy with his 12% dividend whilst the sp is plunging."

It's now an 8.8% yield ... may be time to cash in and get back into RDSB ..... or maybe not.

My best performer for this year curiously enough.

"Spot on DivC, I have funds available to purchase but I think my days of investing in single shares will be few & far between from now on. "

Likewise.

"All the weak holders have been shaken out over the past 10 or so months. "

Had the results been written in the style of results last year, that showed a great deal of planning and preparedness I would have held. I had 2% of a portfolio in here up 30% since April 2020 so as much as taking even a small loss hurts ....a 0.3% loss that could have been anywhere between 0.3-2% given the CV19 has to be taken on the chin.

Some you win, some you lose, and there is always time to re-evaluate at some point in the future.

GLA

Rubbish ... fines are based upon the gross profit for the questioned contracts.

There is no “normally” about it. Rolls Royce was £258 million fine with a 50% discount for good behaviour in effect.

Plus 33% deduction possibly through a deferred prosecution agreement .

FSO fines are calculated according to the UK Bribery Act of 2010 as a multiple of gross profit. The UAE contracts were worth what ? $2.9 Billion ... so what was gross profit?

The biggest fines so far recorded are for Airbus €3.6 bn for EBIT of €6.6 and Rolls Royce of ~£500 m with 50% reduction and less than 10% of attributable profit for 2017.

The FSA are not going to bankrupt a company because of their fine, but they will make it uncomfortable ... so what did PFC build into these contracts are raw profit? 20%

So say a £600-£900 m fine.

"It has to be a big backgorund seller imo. Once they p*ss off this will rebound mightily."

Who'd a thunk it?

"Presumably you are referring to those folk who objected strongly" 70% of GCSE failures voted for Brexit. More widely:

"Who voted for Brexit? Individual and regional data combined" - You can Google this article. The abstract is enlightening:

"We find that voting Leave is associated with older age, white ethnicity, low educational attainment, infrequent use of smartphones and the internet, receiving benefits, adverse health and low life satisfaction. "

So in fact, being a "Brexit Voter" is by association a certificate of ignorance.

Brexiters wear it well.

If you have no idea about shorting in respect of shares, and the risk involved .... my advice is to put the money in the bank, and most certainly stay well away from a share lie Petrofac until you know exactly what you are doing.

"1. where am I getting shares from to buy...if they aren't being sold ?"

A hedge fund manager like Crispin Odey, can give a few million to a cause like Brexit, and then borrow shares from Crest or or your pension fund, pay a small fee for borrowing the shares onto the market, sell then, and then when the mugs in this country vote for Brexit and share prices collapse and remain low in the UK for 4 years, buy those same shares back at a cheaper price pocketing the difference as profit,

The fee to borrow shares goes to the pension fund holder, who uses it to buy champagne at the Xms bash, while the loser is the mug punter who put his money into a pension fund.

That's how Odey made several hundred million off the mug Brexiters that voted to decimate the UK economy.

Wrong logic .... every buyer has a seller and every seller has a buyer ..... what you don't know, is the position of sellers handing shares to the Market Makers to sell onto retail investors.

If there are more "Buys" than "Sells" posted and the price goes down, the only thing you can be sure of, is that the MMs are offloading shares onto retail investors because of a big seller in the background.

The warning bells are cash flow from this morning and rent collection figures .... while relying on liar Johnson’s Build Build Build campaign jam tomorrow.

The company itself and staff are amazing ... but this is about survival .... will it?

So because Barclays sees better plays elsewhere it reduces the PFC price target?

What a stupid comment.

Care less or not .. a fine cannot put a company out of business.