royal mail RMG

[jackdaww]

returning from holiday i see RMG has nosedived on a profit warning .

i sold mine three years ago at 459 .

another example of the risks in buying into high yield with few other considerations.

[kempiejon]

Until recently I can't see how Royal Mail ever really qualified as a HYP share though, no strong history of rising dividends before this year.

[Itsallaguess]

Until recently I can't see how Royal Mail ever really qualified as a HYP share though, no strong history of rising dividends before this year.

So a claim that a high yield strategy is high risk, because it buys that high-yield 'with few other considerations', is clearly debunked by the very first 'consideration' that you can think of?

That's hardly playing fair.....

Cheers,

Itsallaguess

[kempiejon]

Fair point, IAAG, in my defence I thought I was on the other board.

[Itsallaguess]

Fair point, IAAG, in my defence I thought I was on the other board.

Just in case it wasn't clear, I thought you made a very simple and valid point, and one that the OP should have perhaps understood a little better before claiming that people often buy into high-yield shares 'with few other considerations'....

Apologies if the above wasn't as clear as it could have been in my earlier post...

Cheers,

Itsallaguess

[kempiejon]

Ta, I had misunderstood you. As we're not necessarily talking about HYP specifically over here I thought you'd pointed out my error of saying RMG wasn't a HYP share was invalid as the OP just said that RMG was a high yield share and was "an example of the risks in buying into high yield with few other considerations." Which can indeed be risky.

[jackdaww]

Fair point, IAAG, in my defence I thought I was on the other board.

Just in case it wasn't clear, I thought you made a very simple and valid point, and one that the OP should have perhaps understood a little better before claiming that people often buy into high-yield shares 'with few other considerations'....

Itsallaguess

========

this isnt the HYP PRACTICAL board , and i made no mention of HYP-P.

in the case of RMG , other (negative) considerations might be -

regulation
politics
competition
shorters
a business in decline
trade unions .

[Gengulphus]

this isnt the HYP PRACTICAL board , and i made no mention of HYP-P.

Indeed. What you did mention was "buying into high yield with few other considerations", which as far as I can see is a straw man: no-one is advocating doing that.

Gengulphus

[jackdaww]

this isnt the HYP PRACTICAL board , and i made no mention of HYP-P.

Indeed. What you did mention was "buying into high yield with few other considerations", which as far as I can see is a straw man: no-one is advocating doing that.

Gengulphus

=====================

sadly i dont know what a straw man is .

no doubt i will be enlightened .....

[Howard]

this isnt the HYP PRACTICAL board , and i made no mention of HYP-P.

Indeed. What you did mention was "buying into high yield with few other considerations", which as far as I can see is a straw man: no-one is advocating doing that.

Gengulphus

=====================

sadly i dont know what a straw man is .

no doubt i will be enlightened .....

It takes a lot of effort to find this out. Eventually after 15 seconds of trying on Google, I finally managed to find a definition.

I think I need to lie down after all that effort.

And by the way, Gengulphus is right.

regards

Howard

[jackdaww]

Indeed. What you did mention was "buying into high yield with few other considerations", which as far as I can see is a straw man: no-one is advocating doing that.

Gengulphus

=====================

sadly i dont know what a straw man is .

no doubt i will be enlightened .....

It takes a lot of effort to find this out. Eventually after 15 seconds of trying on Google, I finally managed to find a definition.

I think I need to lie down after all that effort.

And by the way, Gengulphus is right.

regards

Howard

=======================
from wikipedia--

""A straw-man proposal is a brainstormed simple draft proposal intended to generate discussion of its disadvantages and to provoke the generation of new and better proposals""

i didnt know i had it in me ....

[Itsallaguess]

Just in case it wasn't clear, I thought you made a very simple and valid point, and one that the OP should have perhaps understood a little better before claiming that people often buy into high-yield shares 'with few other considerations'....

Itsallaguess

========

this isn't the HYP PRACTICAL board, and I made no mention of HYP-P.

And for the avoidance of doubt, neither did I, but I did congratulate kempiejon (even though he didn't realise this at the time!) for coming up with a fairly simple 'consideration', in the form of a 'five-years-of-historical-rising-dividends-test', that might well have meant avoiding Royal Mail in the first instance as a potential choice of income-investment.

Perhaps you meant 'other considerations' that people might not be able to easily and quickly come up with, but that wasn't clear from your opening post....

It just vaguely mentioned 'investment-risk' whilst highlighting a single data-source of a share that's got itself into trouble.

Surely we could all do that with any investment strategy, such as one which might invest in AIM shares for instance.

Would doing so really add any value in terms of it being a valid deconstruction of that strategy though?

Does your own investment strategy somehow avoid risk?

If it does then I'm sure there's plenty of us here that would love to hear how you're able to achieve that....

Cheers,

Itsallaguess

[jackdaww]

========

this isn't the HYP PRACTICAL board, and I made no mention of HYP-P.

Does your own investment strategy somehow avoid risk?

If it does then I'm sure there's plenty of us here that would love to hear how you're able to achieve that....


Cheers,

Itsallaguess

==========================

since you ask --

my strategy , such as it is , is to avoid losses and seek out gains.

for many years i have kept a database of companies i may want to take a share in.

it contains the usual fundamentals , and notes of plus's/minus's , ticks and crosses , my own views , that sort of thing.

also notes of comments from many sources , pundits , investment journalists etc , even people on TLF.

its helped me to pick shares like burford capital , computercenter , games workshop , stobart ,watkin jones ,XP power .

its helped me avoid or exit in good time shares like carillion, conviviality , tesco, BT , centrica , interserve .

its helped me to hold on to BATS , IMPS , GLAXO, ASTRA , vodafone , BHP , greggs , L&G , RDSB , and others , through ups and downs.

maintaining a database , and a watching brief , is time consuming , compared to say buying trackers and investment trusts, or running a simple high yield stock screen , any of which may well have done better , or not , that i cannot know.