Trading the stockmarket (NO Referrals)

englishpremier · 19 May 2020 at 17:05

Yucca said:
Thanks for the explanation but I have no idea what you said lol.

If there were currently 1,000 shares available in Compass, at £1bn each, company would be worth 1,000 bn and anyone can buy a share for 1bn. The 1000 shares available may represent 50% of the company. The other 50% is still owed by the founder.

Now they want to raise 2bn. So they just offer another 2 shares for sale at 1bn each? Do these new shares come out of the 50% that the founder owns? So now there are 1,002 shares in circulation plus the founder owns 48% of the company?

(Obvioulsly im using big numbers here in my example).

So why would them raising 2bn equity today send their share price down 10%? Where are they 'raising' this extra from? The company is selling off more of its own ownership to the public?

Shares get diluted. This is why you need to be in control (and be wary of investors and funding rounds) otherwise in theory your holdings could be diluted out of existence. In reality it's a little different as there are various measures and systems that companies need to go through.

Didn't this happen to the Facebook guy? The one who eventually won a court case, then renounced his US citizenship and moved to singapore?

inferno · 19 May 2020 at 20:37

If you are invested in SPY, what do you think is the amount you need to retire and what age will that be? This is assuming your mortgage is paid off and you want to live a nice life, with say 50K a year spending money?

silversurfer · 19 May 2020 at 20:49

Dont retire owning shares as your income, speak to a financial adviser but they use bonds as its a scheduled repayment and is far more defined then stocks. Some stocks can be great like RDSB for the first time since ww2 cut back its dividend, thats a heck of a record but generally its not advisable to rely on even SPY as an index for income. USA has a premium to it and SPY is about growth, etc., I'd rather say FTSE but I could be completely wrong on that and actually asia pacific is far better placed, nobody can say for sure but I'll throw out $2 million as your question answer or 2.5% (50/0.025)

https://seekingalpha.com/symbol/SPY/dividends/yield

That link says 1.92% average or $2.6mil

Fusion · 20 May 2020 at 08:17

AA up! Only kidding

Skeptic · 20 May 2020 at 08:49

Mostly red in my portfolio today too...! Except for Greggs which is leading the charge - never bet against the sausage roll.

King4aDay · 20 May 2020 at 09:35

Plenty of red here, but Ocado and AZN are helping balance the books. Have finally bought a little Greggs, and having a little dabble in Adyen which has been on a pretty solid up for a month.

Skeptic · 20 May 2020 at 09:48

King4aDay said:
Plenty of red here, but Ocado and AZN are helping balance the books. Have finally bought a little Greggs, and having a little dabble in Adyen which has been on a pretty solid up for a month.

Don't know when you bought into Greggs but has been a good run recently!

King4aDay · 20 May 2020 at 09:57

Skeptic said:
Don't know when you bought into Greggs but has been a good run recently!

Literally just this morning so a little late to the party!

Skeptic · 20 May 2020 at 11:35

King4aDay said:
Literally just this morning so a little late to the party!

The party is just getting started! :eek:

Simon · 20 May 2020 at 11:47

RVSP, sorry im at the CNR party

silversurfer · 20 May 2020 at 15:11

I noticed CNR about doubled in short time. Is their recent news good enough to justify that kind of move. All the miners continue to do well and gold alongside main markets which is slightly contradictory though I'd guess gold just rises in every case eventually, found my old chart where I reckon we left bearish trend but also I'd think we'd hesitate now higher in this wide area.
GOld and Dollar both fell for the duration of 2018 and they are both healthy when they should be inverse really

nightwish · 20 May 2020 at 19:03

CNR was ridiculously undervalued, now it's only fairly undervalued! No significant new news. Recent broker estimate of a hundred and something pence, based on a discount of 40% of NPV seems to have been the catalyst on this occasion. That discount they expect to close as production nears and that does not include a range of possible upsides.

Long term, I'm looking for £2-4 at some point over the next, I dunno, 1-3 years. That said, after such a rapid rise over the last few days, it's anyone's guess what the short-term holds. May just keep going for another bag or two like GGP or may pull back at some point.

inferno · 20 May 2020 at 19:10

silversurfer said:
Dont retire owning shares as your income, speak to a financial adviser but they use bonds as its a scheduled repayment and is far more defined then stocks. Some stocks can be great like RDSB for the first time since ww2 cut back its dividend, thats a heck of a record but generally its not advisable to rely on even SPY as an index for income. USA has a premium to it and SPY is about growth, etc., I'd rather say FTSE but I could be completely wrong on that and actually asia pacific is far better placed, nobody can say for sure but I'll throw out $2 million as your question answer or 2.5% (50/0.025)

https://seekingalpha.com/symbol/SPY/dividends/yield

That link says 1.92% average or $2.6mil

Thanks for the reply, I was thinking of just keeping ETFs in retirment and taking out money as and when I need it.

I'm young now though so maybe when I am older my risk appetite will be much reduced. During this recent turmoil I have just sat back, done nothing except adding each month. A colleague of mine originally had 1 mil USD pre covid, he sold around the bottom, not sure if he has bought back in

BowdonUK · 20 May 2020 at 22:21

I'm new to the shares arena. From a few videos I've noticed an app called Trade 212.

Does anyone use that app, or one like it, when doing their share activities?

Skeptic · 21 May 2020 at 08:16

Congratulations all AAZ shareholders (me included!). Lovely RNS this morning. Share price may well fluctuate by MMs playing games, but what an updates! DYOR etc

AKAK · 21 May 2020 at 08:54

My stop triggered on AAZ at 140 yesterday so I was already happy with that having only held it for a week. I don't really have any knowledge of what long term values are.

Skeptic · 21 May 2020 at 08:57

Fair play and congrats on the gains. Annoyingly my shares are held outside my ISA, so will hit CGT at some point. Will sell and rebuy on any short term weakness.

King4aDay · 21 May 2020 at 12:23

Ocado back at ATH. Temptation to sell is strong .

silversurfer · 21 May 2020 at 12:39

Take back the original stake is usually good after rises.

AAZ is in accumulation now, thats my perspective and sure it rose but its justified. The PE is listed at 8, I dont know thats correct into 2021 but I think 200p is possible this year. I hope the false dawn over speculation means it sells off and then rises. A year ago I thought CEY could get 200p amd investec gold, its peaked just recently but its hard to guess when precisely each rise and fall but overall it should be an ongoing bull market for that sector.

wesimmo · 21 May 2020 at 21:47

So, an update on the virtual trading thing.

My better half is now up to £90k, so 80% in a few weeks.

She's basically done that by betting on Amazon, Netflix, sex toy providers and cannabis funds during the lockdown.

However at one point her cannabis trade was £15k down and had taken her overall balance to £40k. It then swung to a £15k profit over 2 days. However she admitted if it had been her real money, she doubted she'd have held her nerve when both the trade and her overall position were negative by £10k+.