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I felt a bit rash doing it but I bought more today, it's not my current biggest holding due to just over 50% losses with an average of £20.35 but it's my biggest by spend and represents about 12% of my account. My buy lowered my average by £1.52 a share.
I guess my reasons are numerous: I read Howard Marks' (tedious) book on cycles and by osmosis some of it got me thinking that this is cycling down, maybe to go even lower, agreed, but I cannot predict the prices (though I expect £8 at some point). Interest rate cycle is yet to peak, agreed, house purchase/mortgage affordability cycle probably approaching bottom,
I combined that with the Warren Buffett/Peter Lynch line "it's hard for a company with no debt to go bust" and the thinking is that as financially sound as it is this will be back in maybe high teens in a couple of years. Until then the dividend is, currently, 6% and that's fine by me.
I also acted, at least in part, emotionally as it was a huge holding that was bleeding out, so I re-evaluated it over several agonising weeks,and only really saw the pain as a buy opportunity. I'll continue to spend on it until I feel otherwise and my regular fund and trust buys will continue alongside. I am not betting the farm, just maybe some of the outbuildings, on this as a medium-to-long-term bet.
Pandemic price of March 2020, obvs.
We're now below pandemic prices of March 2022. Even if the dividend was halved it'd still be 7% plus. I'm averaged in at £22 and in a major hole already but this is a definite one to walk down the averages on, surely. The old Mister Market story comes to mind. Sometimes he just panics, I guess.
I like this price a lot, it's roughly the same as two years ago except the future success is not reliant on another Covid crash, it is more down to the success of the two sides of the split. I will be resuming my averaging in now, with no idea where the price is going and assuming the dividend to be more like 5% , purely based on a hunch. The stock is "a dog with fleas" at the moment (to quote Wall Street), but I've sat and with it for this long and my losses are all theoretical still. I am confident in a turnaround, I just don't know if I'll be another 12 months in the red first.
It has landed for me on interactive investor. Very welcome too on top of the recent gains.
Agreed Gordo, while It looks like we're on a support line it also looked like that at about 280 a month or two ago. I've averaged down since £5ish and it looks like I'm chasing the White Whale here, but when the reversal comes I'll be more than ready for it. The trick is not to let go of the harpoon.
I can see it being a good six months before it's back to the £2.50 level based entirely on guesswork and gut feel, so rather than backing up the truck I'll be backing up a fleet of mid-sized vans over a period of months to get my average down.
Agreed, I'll still be buying in but this will be red for a good while I reckon. Not fun at all!
I think we consolidate at this level for a few days first. Bought a huge chunk yesterday to get the average down because the future looks good to me, re: consumer trading platform.
This share is dragging my portfolio with it at the moment, with every flicker of news resulting in a waft down. Fundamentals are sound, business is sound, future looks solid to me, so I'm still averaging in for the long term but wowsers it's not one for the traders.