Building a list of shares we want to watch

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garindan
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Building a list of shares we want to watch

Post by garindan » Sat Mar 19, 2016 1:34 pm

Members,

It is time we started being a bit more constructive with our share watching and improve how we decide what and when to make a purchase. We need to remove the need for time consuming polls about purchasing and selling as they are not efficient enough to enable us to react in a timely manner. This could cost us several percentage points in the trading cycle and therefore damage our ability to improve our portfolio in an optimal way. Therefore I would like us as a club to begin to look at things in a different way.

Here is what I would like us to do:

- build a list of about 5 shares to keep a more detailed eye on from both the FTSE100 and FTSE250 (one list for each)
- take a detailed view of the share looking at the good and bad points
- deduce a considered trajectory for the value and potential return over given periods
- deduce what a good buy and sell value would be

I'd like us to give this a go and see how we progress. I've asked underdog to move onto the task now his updates are automated, so we can put some effort into it. I'm going to start by making some suggestions from the FTSE100, as I've been looking at some shares for a while. What would be great is if you all, as members, could make some suggestions. With each suggestion a brief outline about why we may want to consider looking into the share in more detail would be very helpful for us all.

The end game here would be to produce a prioritised list of shares we would buy given the right price, when we have the funds available. We can then just invest without the need for a poll. We would of course need to monitor the list and review our thoughts regularly for this to work effectively :thumbup:

Once we have this in place we can review our existing portfolio and make considered decisions regarding how we deal with those in a similar way in the style I proposed in this thread.
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garindan
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Re: Building a list of shares we want to watch

Post by garindan » Sat Mar 19, 2016 1:51 pm

So here are the shares I have been looking at:

FTSE100

Anglo American
I started looking at this one a few months back when it seemed apparent the company's share value was falling like a stone but had assets with good potential for a recovery. Unfortunately for us, since I was looking at them the best time to invest looks to have potentially gone for the moment - at least from the low point- as the value has significantly increased. For such a big multi-national company there seemingly has to be a point at which the value is too low. It would be interesting to track changes here as the previous highs for this company are still very much greater than the current value...

Standard Chartered
I was interested in banks and this particular one had seen a steep decline in value over recent months, probably due to the greater exposure in Asian markets. Like Anglo, the value looked to be particularly good for a purchase with a good dividend and a good potential for growth. Again, as with Anglo, the value of this share has significantly increased since I first started looking at it and is also still a long way off the previous historical highs. For me I think there is still good potential for growth, especially if the Asia market improves, or at least stabilises.

Without going into more detail about others, I am also quite interested in Barclays, Rolls Royce and Lloyds.

I have not looked at any shares outside the FTSE100 in the FTSE 250.
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Re: Building a list of shares we want to watch

Post by Beachboy » Sat Mar 19, 2016 5:12 pm

Whilst turbulent over the last few years I think the financial sector is worth keeping an eye on, so Barcalys and Lloyds are a good shout. The PPI saga has been accounted for in share values already and whilst they might not rise back to their value before the Banking Crisis there is the potential for shares in this sector to rise again in the future.
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Re: Building a list of shares we want to watch

Post by AAAlphaThunder » Sun Mar 20, 2016 12:04 pm

At your service.

I shall post my FTSE250 watch-list in due course.
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Re: Building a list of shares we want to watch

Post by AAAlphaThunder » Mon Mar 21, 2016 9:47 pm

I'm not an expert investor for the club (not me personally I do things in a unique way) I'm going to rely on those who are more well-informed than me.

Top 20 FTSE 350 Dividend Paying Stocks
UPDATED FEBRUARY 2016: A well-blended portfolio of stocks from the FTSE 350 can provide investors with a diversified sustainable income for life.

Is your portfolio earning you the best possible rate of income? Are you prepared for this year's interest rate rise? We show you how to maximise yield and where to find dividend payers in our Guide to Income Investing.

UK companies paid out £87.6 billion in dividends last year, with underlying dividends excluding special pay-outs reaching an all-time high of £84.6 billion according to the latest Capita Dividend Monitor.

Two-fifths of UK dividends are paid in US dollars and pay-outs were boosted by favourable currency fluctuations, as a strong dollar acted as a headwind adding £2.5 billion to the total – almost half the annual growth.

Capita Asset Services’ forecast was only slightly shy of the total pay-out at £87.2 billion for the year, a pay-out of £1,400 for every woman, man and child in the UK. Despite several high profile companies slashing their dividend in the latter part of the year – food retailers, global banks – underlying dividends rose 6.6% over the year.

Consumer stocks were the income stars of 2015, with retailers and housebuilders adding to growth, while energy and commodity related companies lagged at the end of the year, as the falling oil price filtered down. Capita warned that as dividend pay-outs lag falling profits, 2016 would be a difficult year for commodity and energy companies.

As with market returns, domestically focussed companies in the FTSE 250 outperformed the FTSE 100. Justin Cooper, of Capita Asset Services said investors should prepare for a less successful 2016, predicting a pay-out of £83.8 billion for 2016, and that UK equities will yield 3.9% over the next twelve months, 4% for large cap stocks and 2.9% for mid-caps.

“Our forecast for 2016 accounts for £3.4 billion of cuts that have already been announced, but at least an additional £2.1 billion could be at risk. Much speculation surrounds the UK listed oil majors, but they are likely to hold firm for the time being, relying on cost cutting and strong balance sheets to sustain pay-outs.”

As part of our series The Income Investor we reveal the top 20 paying stocks in the FTSE 350. Premium users can click on the company name for exclusive analyst research. Click on the stock's ticker for share price and valuation information. Please be aware this calculation is based on trailing 12 month yield – and as a result you won’t be surprised to see a large number of industrial stocks in the list. Sectors such as energy stocks are currently displaying yields higher than their long-term average because of share price depression. Metals and mining companies’ share prices have been hit hard by the falling oil price over the past year, meaning the yields have been inflated.

Anglo American (AAL)
Yield: 15.3%
Industry: Industrial Metals & Mining

BHP Billiton (BLT)
Yield: 11.6%
Industry: Industrial Metals & Mining

Glencore (GLEN)
Yield: 11.4%
Industry: Industrial Metals & Mining

Vedanta Resources (VED)
Yield: 10.6%
Industry: Industrial Metals & Mining

Amec Foster Wheeler (AMFW)
Yield: 10.4%
Industry: Oil & Gas Equipment Services

Standard Chartered (STAN)
Yield: 9.8%
Industry: Banks – Global

Rio Tinto (RIO)
Yield: 8.1%
Industry: Industrial Metals & Mining

Royal Dutch Shell (RDSB)
Yield: 8.1%
Industry: Oil & Gas Integrated

Aberdeen Asset Management (ADN)
Yield: 8%
Industry: Asset Management

Ashmore Group (ASHM)
Yield: 7.7%
Industry: Asset Management

BP (BP.)
Yield: 7.5%
Industry: Oil & Gas Integrated

HSBC (HSBA)
Yield: 7.2%
Industry: Banks – Global

Pearson (PSON)
Yield: 6.7%
Industry: 6.7%

Carillion (CLLN)
Yield: 6.6%
Industry: Engineering & Construction

Phoenix Group (PHNX)
Yield: 6.6%
Industry: Insurance Life

TalkTalk Telecom (TALK)
Yield: 6.5%
Industry: Telecom Services

SSE (SSE)
Yield: 6.4%
Industry: Utilities

WM Morrison Supermarkets (MRW)
Yield: 6.4%
Industry: Grocery Stories

Nostrum Oil & Gas (NOG)
Yield: 6.3%
Industry: Oil & Gas E&P

The original version of this article was published in September 2013. The data has changed significantly since then and has been updated accordingly, most recently on February 8, 2016.

Source: Morningstar Direct
http://www.morningstar.co.uk/uk/news/11 ... tocks.aspx
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Re: Building a list of shares we want to watch

Post by AAAlphaThunder » Mon Mar 21, 2016 9:49 pm

Here is a FTSE250 dividend resource that can be ordered in several ways depending upon what you are looking for.

So basically you can compare the dividend stocks in the FTSE 250 index by dividend yield, payout ratio, Price/Earnings, earnings per share (EPS), dividend per share (DPS).

http://www.topyields.nl/ftse250-best-dividend-stocks/
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Re: Building a list of shares we want to watch

Post by AAAlphaThunder » Sat Mar 26, 2016 2:53 pm

I'm hoping for some input for my fellow members. I have posted a list above and there are more choices in this article below.

The best of British: 10 great share tips
http://www.telegraph.co.uk/business/201 ... -your-isa/

I can within reason watch a number of shares.

I would be grateful if we could reach a consensus on which shares we should watch.
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garindan
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Re: Building a list of shares we want to watch

Post by garindan » Sun Mar 27, 2016 1:19 pm

underdog - I think what might be more helpful now, with this wider reading, would be to narrow down this list into say 5 you think you would invest in, why, what buying price might be a good entry point and what the returns might be like (potential sell price, dividends etc...)

If others could spend some time doing some research and making some of their own suggestions it would also be very helpful :thumbup:
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Re: Building a list of shares we want to watch

Post by Enzocas » Sun Mar 27, 2016 8:52 pm

If you want to add some excitement, have a look at Eagle Eye

It is a small company which provides interactive online marketing solutions; it works with all largest retailers and it has in the board the dude which was in charge of Tesco when it was still making money

Although, it's a small AIM listed company, so usual risk warnings...
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Re: Building a list of shares we want to watch

Post by garindan » Sun Mar 27, 2016 9:06 pm

Enzocas wrote:If you want to add some excitement, have a look at Eagle Eye

It is a small company which provides interactive online marketing solutions; it works with all largest retailers and it has in the board the dude which was in charge of Tesco when it was still making money

Although, it's a small AIM listed company, so usual risk warnings...
Thanks for your input :thumbup:

At the moment we are sticking with less risky shares. Perhaps this time next year when we have consolidated, expanded and traded our holdings we'll be in a better position to consider AIM or and/or other markets. A risky share that goes wrong at this stage of the club will put us back some time so it is probably best to wait a little before introducing higher risk options.

Your thoughts are very welcome though :D
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