big opening gap on weekly chart here. we got a similar one in may last year to 40 quid and the shares run up to 50 quid plus before correcting. does the same happen again? im not sure. i have halved my position to underweight here. i believe in the demand theme for copper in the longrun which is why i have retained a positioned but copper itself is now a bit stretched but also the ft100 is at channel resistance (7170) which it touched today and backed away from. its possible we see some kind of retracement here. it might be 50 points, it could be a couple of hundred points. you just dont know. but its quite probably that rio will follow the market lower if that happens.
march 3rd gap to 2325 has now been filled. doesnt mean shares must fall but often there can be a reaction against the gap as st traders take profits on met target. near term suppport around 2200 looks good.
RE: Trading update coming up this Thursday05 May 2021 15:57
boe may take the podium tomorrow especially if they talk of tapering bond buying. this would push any rate sensitive stocks lower but in the case of barratt and a few other builders, it would be an opportunity to add. the next couple of years look good for the company.
true but its more of looking for a story to fit the price action c/i ratio is still lower than the average through the year pre covid to q1 2020. increased compensation and covid related costs will have made up a good deal of the extra costs. you can expect the covid costs to get smaller going forward. i think barclaycard might have been a bit of a disappointment but its backward looking given that the lockdown is now ending.
elliot is a disrupter, it wont be taking over gsk but it can use its influence to massage the board into moving faster or moving in a different direction. its not a long term player. the hedge fund looks to release value in its invest quickly on the whole, but it does have certain positions which its held for a number of years. but back to gsk, it may well want to speed up the break up and may have try to extract maximum value for the consumer arm. its always expected pfizer will buy it out but elliot may throw in a third player to increase the take out price. thats my view. i dont elliot have commented yet.
RE: PB shares now in my X-O account09 Apr 2021 15:14
back in march 200, a company called lastminute.com floated. this was at the back end of the then tech bubble and the company like deliveroo was pitched to retail investors. history doesnt repeated but it may rhyme. please consider this. below is an extract from wikipedia re the lastminute.com float From foundation to flotation: April 1998 to March 2000
lastminute.com was founded in London by Martha Lane Fox and Brent Hoberman in 1998 to offer late holiday deals online. The founders were colleagues at media strategy consultants Spectrum.
By January 2000, the site had more than 500,000 regular users and its offerings had expanded to include travel, gifts and entertainment, with a specialisation in selling distressed inventory.
Prior to its flotation, the company raised a further $31m. It opened offices in Paris, Munich and Stockholm. During the ten months ending December 1999, the company handled £37m of transactions, which generated £330,000 of income.
The shares floated on the London Stock Exchange on 14 March 2000. The shares were placed at 380p, valuing the company at £571m. The price rose on the first day of trading to 511p, giving a valuation of £768m, before falling back to 492.5p later in the day. The paper wealth of the founders of the business went up to around £300m.
Two hundred and fifty thousand private investors had applied for shares in the flotation. 33m shares – 25% of the company – were being offered for sale, the bulk to institutional investors. Private applicants received just 35 shares each. Public listed company: March 2000 to May 2005 lastminute.com share price (14 March 2000 through 14 March 2001)
Two weeks after listing, the share price had dropped to 270p. In the first week of April, the shares dipped below 190p, half the issue price. On Monday, 17 April 2000, after the biggest ever one-day fall in the New York stock market the preceding Friday, £35bn were wiped off the value of the London Stock Exchange. By now, lastminute.com was trading at 30% of its flotation price.
Its share price was rising again when the firm announced its first quarter's results on 6 May 2000. The company had handled £7.16m of transactions, up 68% compared with the previous period. During this period, the company had invested in a new version of the website as well as international expansions. These factors pushed pre-tax losses up from £6m to £11m. The market responded to the better-than-expected figures and the shares closed the day up 8p at 245p. Two weeks later, however, the shares closed at 141p, as concerns over dotcom stocks increased, after boo.com went into liquidation.
The introduction of a new website – allowing late deals to be targeted according to users' personal tastes – was delayed but finally unveiled on 27 November 2000.
Meanwhile, on 14 August, lastminute.com announced the acquisition of Degriftour, a French online travel agent, for £27.1m
today and yesterday you are probably seeing a relief rally in no profit techs. i think they have much further to fall. big tech with earnings should be ok however. not stay at home or those without profits. many of those have been hit hard and will never return to highs. but the likes of apple amazon microsoft etc, i dont think they have too much more to fall. i think they will generally follow the market to slightly underperform, until rates peak later this year, but i cant see any big downside since they are backed by earnings and have good prospects for growing those earnings, as well as undemanding fwd pe ratios. i think you can do a lot worse than buying them here although as i say, there may or may not be a little more downside.
yes spending on takeaway wont go away. however one of the big mrgin boosters for these types of firms is the fact that they dont pay wages nor associated costs such as benefits. the ground is shifting here and eventually these firms will be forced to do so. just eat, the market leader in the uk, is already paying a minimum wage and holiday pay. deliveroo will need to step and in addition it needs to fight the market leader for share. this means lower prices and so lower margins. during the lockdown, it was all delivery, yet they still couldnt squeeze out a profit. this period of time isnt coming back. so going forward those comps are going to be tough. if you are talking 5 to 10 years, maybe maybe not, but the fact yields are rising means future earnings are worth less than a few months ago. hence why cyclicals are in favour, companies that make money now and more importantly can raise prices not cut them.