The Lemon Fool

monabri wrote:p.s. I think BA. and NG. are clear enough - as I said, even a newbie like myself recognises BAE SYSTEMS (capital letters !!!) and National Grid from their tickers.

Well, I hold BAE and even I didn't know what you meant. I thought 'hmm, people don't mention BA around here much, aren't they owned by IAG anyway, maybe he means BBA, oh no, he already holds them...maybe BAT then....' - I never got as far as BAE!

Mel

melonfool wrote:
Well, I hold BAE and even I didn't know what you meant. I thought 'hmm, people don't mention BA around here much, aren't they owned by IAG anyway, maybe he means BBA, oh no, he already holds them...maybe BAT then....' - I never got as far as BAE!

Mel

Well said Mel. I am glad that there is at least one other who thought exactly the way I was thinking.

Someone mentioned sector diversification as the key. I am not sure that is the case. Certainly I pay little attention to sectors. I am much more interested in the actual company. Sector classification does not mean much anyway. There is a ragbag selection in Support Services but there is also a lot of differences within the not so ragbag financial sector from banks to insurers to fund managers and even within insurers there are many different types of business.

I have never held Carillion and certainly would not buy it at the moment. Maybe the results announcement on Wednesday will bring some clarity. Thursday brings results from Cobham and Schroders. I am glad to say I sold Cobham last year so it will be of academic interest only but it will be interesting to see what horrors they unveil. I hold Schroders and it should be fine.

Dod

Dod1010 wrote:

Someone mentioned sector diversification as the key. I am not sure that is the case.

That was me! You're quite right of course and I think some otters have pointed out similar examples before - the 'Travel and Leisure' sector covers a wide range of diverse uncorrelated industries (I have Greene King and TUI as examples).

It was a general point, and perhaps shouldn't have used the word 'key'.

Cheers, OLTB.

Gah! I meant others, not otters - I don't choose shares based on recommendations from water mammals.

OLTB.

monabri wrote:As a newbie Hyper I bought into Interserve, Connect Group and Carillion ...All in the "Support" sector, all with wonderful high yields and many positive reports (TMF , Stockopedia, Daily Mail broker summaries) . All 3 have taken a good kicking recently with Carillion apparently being the most shorted company in the FTSE, Interserve being a basket case who can't even appoint a replacement for Mr Ringrose calling for a teleconference 1 week before reporting...My message would be avoid anything in the "support" sectors.

The "Support Services" sector is a bit of a catch-all. I have CLLN which I put in the Building/Construction sector with Taylor Wimpey (TW.), plus Compass (CPG) and DS Smith (SMDS). One is a caterer and the other a packaging manufacturer. Rentokil, (RTO) the rat-catchers, were also in this sector. Can you see any connection?

I have had other sectors in the past, like Transport with the then British Airways (BAY) and Stagecoach (SGC). Airlines and bus companies, with a bit of rail franchising thrown in. Chemicals was ICI and BOC, later Yule Catto, now Synthomer (SYNT) replacing ICI. Oddly RTO relaced BOC when that was taken over. All now gone.

In my view you have to consider sectors with a critical eye, and if you can, differentiate between the sub classes, like Life Assurance, General Insurance and Insurance Brokers. That way you can avoid direct duplication.

TJH

OLTB wrote:

monabri wrote:As a newbie Hyper I bought into Interserve, Connect Group and Carillion ...All in the "Support" sector

Hi monabri

As a new HYPer myself (started in August 2016) I have followed pyad's (and most others) advice into investing in one share per sector, rather than multiple shares in one sector. Therefore, I also have exposure in the 'support' sector with Carillion - I have an 18 sector HYP with 19 companies (the two main oilies). I also don't know why the Carillion shares have been hammered lately and not really bothered as I'm topping up each month until either dividends affected or HYPTUSS says, 'no'.

Apologies if you're aware that it's sector diversification that is key rather than company diversification within the same sector, it's just that the comment above seemed to suggest otherwise.

Cheers, OLTB.

OLTB, yes one share per sector makes loads of sense, I still maintain that support could be treated differently as I tried to demonstrate. I think pyad gave us 2 banks in an HYP, mortgage and high street, Alliance and Leicester and Lloyds I followed into both, a very quick google didn't find my evidence so I'm probably confused or anyone else?

tjh - yes, this week, Wednesday, is next month too.

So just doing some final checks and Big Yellow caught my eye as a potential - a little out of a left field.

Its got a 7 year history of growth and pays out 80% of earnings - Growth growing at over 10% YoY

It has a cover of 1.26 - 80% payout so makes sense! and seems to have a decent growth pipeline of small but steady

Debt is slightly concerning at £277m, but it mainly seems to be property; which you would expect from a storage business.

This one is certainly quite interesting to me. Has anyone else looked into them before?

minerjoe wrote:So just doing some final checks and Big Yellow caught my eye as a potential - a little out of a left field.

Its got a 7 year history of growth and pays out 80% of earnings - Growth growing at over 10% YoY

It has a cover of 1.26 - 80% payout so makes sense! and seems to have a decent growth pipeline of small but steady

Debt is slightly concerning at £277m, but it mainly seems to be property; which you would expect from a storage business.

This one is certainly quite interesting to me. Has anyone else looked into them before?

Not crossed my boundaries before this stock. From digitallook, It is listed in the FTSE250, the forward yield is 4.1%, and a pe of 19. Cover slight, but it is a REIT at 1.3. The market cap is a concern for me, at £1.1bn. See http://www.digitallook.com/equity/Big_Yellow_Group .

I'd stick with the big guns in the FTSE100 such as British Land if I were you.

HTH,

Ian.