WPP Third Quarter Trading Update.

[idpickering]

Here; viewtopic.php?p=260036#p260036

Ian.

[Arborbridge]

I've been updating some charts, and here's my one of WPP:-



WPP is currently No.7 in my top-up list and would probably be in the running - except that I'm out of fuel in that particular account.

From this chart one can see my buy points. My inital purchases around 5% yield clearly caused Sorrell to resign and brought about the company misfortunes! More interestingly is my reaction afterwards - I didn't buy at peak yield, but waited a while for the fuss to die down, buying in at a yield just over 6%.

That looks like a failure of courage, or a wise move depending on one's perspective and what happens next.
Whatever, it is always interesting to look back at purchases to see how one reacted at the time and whether one bought near a peak yield or not.

Also notice the static dividend which shows up clearly - something to bear in mind. One has a trade off here - take the yield and trust the management to increase the dividend when fortunes tune, or wait for improvements but top up at a lower yield. I guess that depends on what other options one has, too.

Arb.

PS - I noticed a discussion concerning buying ULVR - I'd say it isn't in the frame for me as it is not close to my previous buying yields, and definitely nowhere near peak yield.

[idpickering]

WPP is currently No.7 in my top-up list and would probably be in the running - except that I'm out of fuel in that particular account.

From this chart one can see my buy points. My inital purchases around 5% yield clearly caused Sorrell to resign and brought about the company misfortunes! More interestingly is my reaction afterwards - I didn't buy at peak yield, but waited a while for the fuss to die down, buying in at a yield just over 6%.

That looks like a failure of courage, or a wise move depending on one's perspective and what happens next.
Whatever, it is always interesting to look back at purchases to see how one reacted at the time and whether one bought near a peak yield or not.

Also notice the static dividend which shows up clearly - something to bear in mind. One has a trade off here - take the yield and trust the management to increase the dividend when fortunes tune, or wait for improvements but top up at a lower yield. I guess that depends on what other options one has, too.

Arb.

PS - I noticed a discussion concerning buying ULVR - I'd say it isn't in the frame for me as it is not close to my previous buying yields, and definitely nowhere near peak yield.

A very nice chart Arb. WPP are a more recent buy for me I guess, buying on 13 May 19, and 27 Sep 19. I have held before, chickened out, then bought back in. My average purchase price is 898p per share, and they make up 3.2% of my HYP in capital value terms. A hold for me now.

Ian.

[monabri]

A very nice chart Arb. WPP are a more recent buy for me I guess, buying on 13 May 19, and 27 Sep 19. I have held before, chickened out, then bought back in. My average purchase price is 898p per share, and they make up 3.2% of my HYP in capital value terms. A hold for me now.

Ian.

Avg 898p...I think you did well there Ian! My avg is 1113p... There is a degree of skill in deciding when to buy (imho) and not to dive in too early..comes with practice/experience I guess.
Monabri

(I might change my TLF "name" ..on logging in, I type in "monabri " and it suggests "Mo Farah "... )

[idpickering]

A very nice chart Arb. WPP are a more recent buy for me I guess, buying on 13 May 19, and 27 Sep 19. I have held before, chickened out, then bought back in. My average purchase price is 898p per share, and they make up 3.2% of my HYP in capital value terms. A hold for me now.

Ian.

Avg 898p...I think you did well there Ian! My avg is 1113p... There is a degree of skill in deciding when to buy (imho) and not to dive in too early..comes with practice/experience I guess.
Monabri

(I might change my TLF "name" ..on logging in, I type in "monabri " and it suggests "Mo Farah "... )

Thanks monabri. I’m no expert believe me, but I do like a bargain, after my due diligence of course. I keep mentioning my having doubled up on Shell in 2016 when they were imho a bargain. Back to WPP though, I’ve no intention of buying more currently.

Ian.

[Arborbridge]

There's a lot of luck involved. I bought at a "sensible" yield of 4.8% for my first tranche. Did we know that within a couple of weeks Sorrell would resign and the shares would be dumped? - I think not.

I did buy more in May 2019 at 970p but my average price is 1296p. Fortunes of war m' hearties: in this case, pure luck who gets the right strike and who is made to look rather stupid.

Ian did well, though some would have said at that time "a brave decision, minister". WPP's fortunes could have gone either way, if you remember the news of that time about advertising trends changing radically. Who knows - it could still be in terminal decline!
It's all a game of unknowns and half truths, which is why we spread our capital around.



Arb.