Hariseldon58 wrote:The dangers of capturing a falling knife ?
It has only been a month, but this is already an eye opener for me around dangers of single stock picking, to have 3 absolute stinkers in a fairly flat market is somewhat sobering.
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Hariseldon58 wrote:The dangers of capturing a falling knife ?
Walrus wrote:It has only been a month, but this is already an eye opener for me around dangers of single stock picking,
Walrus wrote:Well one month in and the Dog Conviction Fund has had a shocking start.
Three double digit losers and a chunky loss in BT.
Petrofac -18%
Centrica -15%
Imperial - 13%
BT -6%
This fund has been seriously bad for your health if you are chaser of dogs.
Bright spots are Apple up 3%, GVC up 2 percent and marginal gains on GE.
Hmmmm, Average down on Petrofac perhaps.....
Walrus wrote:BT PE 8 Yield 7.8
Owns EE a quality outfit in my view, in a sector which is here to stay. Huge barriers to entry in terms of investment outlay. Bombed out share price, can't really see you much downside here.
TUK020 wrote:Walrus wrote:BT PE 8 Yield 7.8
Owns EE a quality outfit in my view, in a sector which is here to stay. Huge barriers to entry in terms of investment outlay. Bombed out share price, can't really see you much downside here.
Huge capital investment program to stay in the game for Fibre to the premises.
Massive pension liability & shortfall.
May not leave much for dividends.............
I hold, toying with the idea of topping up, but nervous about this as a selection
TUK020 wrote:Huge capital investment program to stay in the game for Fibre to the premises.
dealtn wrote:Actually the pension issue is one of the reasons I am attracted to the BT, and currently long.
Guess that's what makes a market, differences of opinion.
Alaric wrote:TUK020 wrote:Huge capital investment program to stay in the game for Fibre to the premises.
Has there been talk of spinning off Openreach as a separately quoted entity?
Bouleversee wrote:dealtn wrote:Actually the pension issue is one of the reasons I am attracted to the BT, and currently long.
Guess that's what makes a market, differences of opinion.
Please explain. I must have missed something.
TUK020 wrote:Bouleversee wrote:dealtn wrote:Actually the pension issue is one of the reasons I am attracted to the BT, and currently long.
Guess that's what makes a market, differences of opinion.
Please explain. I must have missed something.
I await dealtn's perspective, but my answer would be liabilities would be marked down in the event of interest rate rises, so buying BT ahead of a rising rate ramp could be quite smart
dealtn wrote:Eventually you could have a transformation where a situation of assets at £52bn and liabilities of £59bn could become, say, assets £65bn liabilities £45bn.
Bouleversee wrote:Walrus wrote:Well one month in and the Dog Conviction Fund has had a shocking start.
Three double digit losers and a chunky loss in BT.
Petrofac -18%
Centrica -15%
Imperial - 13%
BT -6%
This fund has been seriously bad for your health if you are chaser of dogs.
Bright spots are Apple up 3%, GVC up 2 percent and marginal gains on GE.
Hmmmm, Average down on Petrofac perhaps.....
Did you ever consider that April 1 might not be the best day to kick off?
I have held those 4 for some time (BT since it was a dear little puppy) and have also been badly bitten by them all. What I want to know is when are you going to have them put down or do you think they can still improve with training? Maybe you are thinking of switching to a different type of pet? How about a few chickens which can be relied on to lay you a regular supply of eggs, albeit not golden, and make a nice roast at the end of the day; or cats which sleep much of the time but bring in the odd mouse and now and again present you with a litter of kittens which you can sell to pay the vets bills and catfood? Or you could just take a nice stroll round a zoo from time to time; much less work and worry! Dogs are not the only creatures and their tail wagging can be deceptive.
Alaric wrote:dealtn wrote:Eventually you could have a transformation where a situation of assets at £52bn and liabilities of £59bn could become, say, assets £65bn liabilities £45bn.
That might depend where they've invested the assets. Increasingly sponsors of defined benefit schemes have felt obliged to hold either indexed government securities at a negative real rate of return, or fixed income government securities at rate between 1% and 2%. Either way it may reduce risk in the form of asset collapse or volatility by reduces returns as well.
dealtn wrote:
Eventually you could have a transformation where a situation of assets at £52bn and liabilities of £59bn could become, say, assets £65bn liabilities £45bn. It will be interesting to hear commentators concerns about significant pension surpluses in due course. Before that you will have the situation where the £2bn funding into such schemes will be stopped, which becomes available for either capital investment or debt repayment or dividend payments.
Itsallaguess wrote:dealtn wrote:
Eventually you could have a transformation where a situation of assets at £52bn and liabilities of £59bn could become, say, assets £65bn liabilities £45bn. It will be interesting to hear commentators concerns about significant pension surpluses in due course. Before that you will have the situation where the £2bn funding into such schemes will be stopped, which becomes available for either capital investment or debt repayment or dividend payments.
Would you go so far as to suggest that such 'high-pension-deficit' companies might even act as a bit of an investment hedge if rate-rises were seen faster than might be 'generally palatable'?
I wouldn't have too much conviction that this might be the case, but it's one of the little things that's stopping me exiting a couple of companies in similar situations....
Cheers,
Itsallaguess
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