Shares

[Bibs 11,179]

NB - Nothing in this thread shall constitute financial advise, seek your own professional opinion before making any decisions, past performance is no indication of future performance etc.

I bought some Rolls Royce shares late last week (I know, lucky timing as of right now). I was sent a 'Corporate Action' yesterday for a Rights Nil Paid Distribution where I can buy a shed load more for what's now about 20% of the current price. I can see that all these extra shares will obvs dilute the current price but is it best to buy these cheap ones, sell my rights to the cheap shares, sell what I have and run with the profit or just ignore it (which seems like a bad idea)? I'm not quite sure what a Rights Nil Paid Distribution is to be honest! 

[red vtec 186]

I also have Rolls Royce shares, I don't seem to have had the Nil Paid distribution, looks like it is done to raise capital for the company.

Not sure if this helps

https://www.investopedia.com/terms/n/nilpaidrights.asp#:~:text=Nil-paid rights are only the right to acquire,securities they are given the right to buy.

 

[Kimbers 1,795]

Last massive drop in 2008 I put all my savings into shares and doubled my money. Stupidly left it i there and I am almost back to where I was! 

But the way I see it my stock is in companies that are quite COVID Proof like Diageo, Fevertree, Aviva etc. My worst ones are Stagecoach which have been an unmitigated disaster, as to be expected, but hopefully they will come back. 

I think now is a great time to invest in strong companies because the only reason their stock is low is because of COVID, not any profit issues.

 

[red vtec 186]

Do you use any of he self trading platforms? Id like to start but was not sure what platforms people use.

 

[Bibs 11,179]

I use Fidelity.

https://www.fidelity.co.uk

[red vtec 186]

I have fidelity, is it easy to use? I've never looked into it, but have inheritted a large number of shares from My father.

[Kimbers 1,795]

I  use Halifax Share builder. You need to sign up for a regular amount (I do £100) but you can adjust it monthly so If I want to buy £1000 worth I just change my next investment. You get a choice of 4 dates per month.

Best thing about it? My Trading fee is £2 no matter how much I buy. Its by far the most cost effective way to invest in Shares regularly and you can swap and change what shares you buy monthly. 

I also have it set to Dividend reinvestment so it automatically handles that for me as well as giving me Tax invoices etc and it has a research centre attached which gives you all the stats etc.

Couldn't recommend it enough.

https://www.halifax.co.uk/investing/start-investing/share-dealing-services/sharebuilder.html

[C8RKH 6,266]

I use a flexible shares ISA, that way it is wrapped in a "tax friendly" wrapper as you can put in up to around £24k a year and, depending on the one you have, you can usually draw down online (up to £10k) or within around 12 days for more.  I use it to save for my cars!  The return on the shares is better than BS rates and I can withdraw within my tax free limits etc.

It's not quite picking and trading shares, but then I just don't have the time or the smarts to research individual shares/companies to make proper investment decisions.

[ChrisJ 1,475]

@Kimbers

Thought I'd check out the Halifax link - and on that linked page it states:

Quote

What charges do I pay?

Account admin charge/platform fee	Zero
Real-time online trades	£12.50 dealing commission per trade
Scheduled regular investments	£2 dealing commission per trade

So the £2 fee is only for your regular investment, anything else £12.50, which is very similar to the platform I currently use - Equinity (although their regular investment is only once a month and the fees are a %age min £1.75).

Damn I thought I'd save a bob or two by switching. Do you have to have a Halifax Account before you can have one of these?

 

[Kimbers 1,795]

All I do is adjust my regular investment @ChrisJ. So normally it goes out of my account on 1st and the shares are bought for 3rd. If I want to invest say, £1000, I use the next closest date (they allow 4 a month) set up a draw on my bank account for say the 15th and invest the £1000 on 17th. After its done I change it back to the regular investment.

If you want to trade immediately then yes you use the Share Trader Account instead but I don't mind waiting a week or so as my dealing is long term.

 

[TAR 402]

I thought Equinity was awful and expensive. Used them for a short while to manage shares I bought in the company I work for. I now use Halifax share dealing and it's great.

I'd echo what C8RKH says and suggest using a shares ISA to protect your investments from the tax man, unless of course you can afford to invest more than the max yearly ISA limit.

I've also got a managed ISA where the shares are all picked for me and it's designed to build a nest egg for retirement. I pay a percentage of the fund value as a management fee but it's still good value.

[red vtec 186]

13 hours ago, TAR said:

I thought Equinity was awful and expensive. Used them for a short while to manage shares I bought in the company I work for. I now use Halifax share dealing and it's great.

I'd echo what C8RKH says and suggest using a shares ISA to protect your investments from the tax man, unless of course you can afford to invest more than the max yearly ISA limit.

I've also got a managed ISA where the shares are all picked for me and it's designed to build a nest egg for retirement. I pay a percentage of the fund value as a management fee but it's still good value.

I had to deal with Equinity to transfer my fathers shares, I went round the houses with them! If I want to trade them under a different platform do I have to do anything? My understanding is Equinit and Computershare are the holders? 

[TAR 402]

@red vtec Yes you can move your share holding to another broker. The new broker will complete the transfer on your behalf. It's usually just an electronic form. They'll also be able to move a stocks and shares ISA if that's what you have. 

[mayevora 1,188]

I got extremely lucky timing wise and switched everything in February into Apple, Microsoft, Google, Visa, Adobe and 6 other stocks. I may not need to work for as long as I had intended to. US Tech stock has gone nuts since lockdown started back in March.

[Bibs 11,179]

Rolls Royce have just about doubled since my post above, very lucky!

It's that right issue next week, still no idea what to do though or what will happen to the price! They're just over £2.40 at the moment and I can but a shed load at 32p! 

[red vtec 186]

9 minutes ago, Bibs said:

Rolls Royce have just about doubled since my post above, very lucky!

It's that right issue next week, still no idea what to do though or what will happen to the price! They're just over £2.40 at the moment and I can but a shed load at 32p! 

Have you registered your vote for the rights issue? I did mine the otherday and will buy the shares if the rights are issued. The shares will probably dip at first as it will flood the market is what I have been told by a mate who works in the city. But RR are involved in plenty of stuff apart from Civil aviation i.e. military applications.

[Kimbers 1,795]

My G4S shares have a hostile takeover happening. They are currently at 207p and the Company trying to take them over is offering 130p + 30%. How on earth does that work? So if they are successful then they get the company at a hugely cheap price! And 207 doesn't really reflect the companies value as its low because of COVID!

 

[andydclements 765]

G4S board were approached with that offer a long time ago, and at the time the shares were just over £1, so at the time it was a quick profit for shareholders. It's now back at the market value pre COVID and looks like a low offer. It's just timing.

[Bibs 11,179]

So the RR shares dropped 65% this morning to 70p and have recovered slightly back to 80p already which is good. I've got my allocation of 32p ones to buy once the offer comes into my trading account but it looks like a real result so far, its not a million miles off of tripling the rights issue cost! Fingers crossed they end up back to pre-covid levels in a year or two and then I'll really be laughing! 

[red vtec 186]

Just paid for mine.

[TdM 168]

The general problem is that your initial investment gets diluted to hell (hence the big share price drop) your new payment to the company then replaces this part that went down so in theory you end up about even in the end, it's a bit like robbing Peter to pay Paul.

Oftentimes, rights issues are negative to share holder value because the company has received cash in a stressed state and therefore is unlikely to maximise that cash injection so the money you put in will be discounted by the market (also money now is worth more than money in the future).

If it is seen as a positive, generally for a strategic investment then the opposite may occur. It can also prompt a price recovery if they think that it's enough to tide the company over that otherwise was going down the drain (this would be the RR situation, though not saying it will necessarily come out well!).

 

Regardless, the situation is usually pretty murky until after everything has gone through and then you are relying on management to steer a clear course.

[alias23 1,517]

Just found this thread and with shares hitting new lows back in the game of topping up so thought I'd join the conversation. BP is at the lowest its been for a long long time so started to top up. Previously also done well with Lamprell, Fresnillo, and Weir but their still not low enough yet... Always got my eye on Treatt but they seem to remain rock solid at the moment.

[Kimbers 1,795]

Aviva is announcing newer and better profits regularly, especially as everyone had to have their insurance on vehicles/Houses etc but no one was using them so less accidents. People were also in their houses all the time so less burglaries, less house fires because people were there to put them out etc etc.

Yet! They are almost half of their previous cost. Purely because of the COVID effect! Well worth a look!

 

 

[red vtec 186]

My partner works for Aviva, insurance industry is taking big hits at the moment. There is an assumption that insurance will pay for everything, watch the amount of fires on commercial premises grow in the next few months...

[C8RKH 6,266]

1 hour ago, red vtec said:

My partner works for Aviva, insurance industry is taking big hits at the moment. There is an assumption that insurance won't pay for anything.

FTFY.

You will always get a few chancing bastards that the Insurance companies need to find and prosecute. You also get a larger number of cases that the Insurance companies will try anything to get out of paying for even when the case is legitimate.

It's just a game to them.