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The mkiv Supra Owners Club

Share dealing


Ian C

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You did well to make anything from Woolies, that was bloody risky! :blink:

Howdens, as a company whos performance will have strong ties to housebuilding activities - again, like you say - much more luck than judgement.

 

Howden's share's were based on the fact that we've just gone through the 'busy' period in work where they couldn't make enough units, worktops, etc. The operators went from 25/5 working to 24/7.

Wollies shares were based on absolutely nothing at all :D

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Wollies shares were based on absolutely nothing at all :D

 

They are £100M in debt, their new (of 2 months) MD - brought in to save them - says they are in awful shape. As a result, the company which has 800 stores. has been valued at £1.

 

http://www.guardian.co.uk/business/2008/nov/19/woolworths-highstreetretailers

Woolworths - which is famous for its pick 'n' mix - is believed to be in discussions with restructuring firm Hilco to sell its 800-store chain for a nominal £1. The shares lost nearly a third of their value on the news, falling 1.23p to 2.58p, after being suspended briefly before the announcement.

 

 

You were damn lucky! :p

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They are £100M in debt, their new (of 2 months) MD - brought in to save them - says they are in awful shape. As a result, the company which has 800 stores. has been valued at £1.

 

http://www.guardian.co.uk/business/2008/nov/19/woolworths-highstreetretailers

 

 

 

You were damn lucky! :p

 

I call it a 6th sense ;)

I sold them only a week'ish after buying them, kind of reailsed it was a risky one. Still, if you don't take risks, you don't make money :) or loose money as it normally is for me :)

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6th sense my ass. :D

I've got some shares, but I know about the companies I've invested in. There is calculated risk, and there is going in blind.

 

I shall be doing more spreadbetting in future though, it's more cost effective for the smallish numbers I'm willing to gamble with, and more flexible as I can make money out of companies I think will perform badly rather than just thaose that will perform well. (And in this climate...)

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I use Barclays online stockbrokers (part of Barclays Wealth). If you trade very infrequently the trades cost £12.95. I think III looks better and is a little cheaper, but you have to wait for activation stuff through the post whereas Barclays let you credit the account from a debit card and trade right away.

 

 

I looked at Barclays, not recommended if you trade infrequently as they charge £12 a quarter if your account is inactive (no trades).

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I ended up with Interactive Investors, http://www.iii.co.uk

 

They have a flat rate £10 trade fee on their trading and ISA Investment accounts, and no monthly subs. Website is okay-ish, bit slow at times, not the best UI but it's always been available. As a package the whole offering is very good.

 

I set up an ISA account as well. You can trade any old FTSE type shares in them but only a limited amountof AIM stocks, they have to be dual listed, i.e. be on AIM and another exchange as well. I like AIM stocks as they are more exciting :)

 

The way an investment ISA works is this:

You put money into it, and that comes off your yearly ISA allowance. I think it's 10k at the moment, so if you put in 5k you could only pay in another 5k after that during that financial year.

 

You then buy shares with your 5k. If you are fortunate, they go up in value. You can then sell them, but the money you get from selling them stays within the ISA investment account, so you can then use it to buy more shares, or you can take it out or any combination of the two. Using money within the account to buy shares has no bearing on your yearly allowance. Taking money out doesn't either, and it's not subject to any capital gains tax.

 

So you could pay in 5 grand, do some blinding wheeling and dealing and end up with 20 grand of shares, sell the lot, take ten grand out, reinvest the remaining ten, and still have 5 grand of ISA allowance available. What you can't do is then put the 10k you took out back in. Once it's out, it's out - you use up your allowance to put anything back in.

 

Hope that helps. My ISA shares are stinking at the moment haha :cry:

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The markets/units do seem very volatile at the moment.

 

Exactly, perfect time to buy :D

 

If you only use money you can afford to lose, and write it off as lost forever the moment you invest it, the you should be OK.

 

I have heard horror stories where people do dumbass things like borrow against credit cards to buy shares in a "sure thing". That's probably not a good idea.

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Currently looking at a stocks/shares ISA from Simply Stock Broking, seems crazy not to use the tax free allowance plus Simply only charge £8 per trade and have a nice iPhone app.

 

Seems like a good deal, probably one of the cheapest on the market. Let us know what you think of their platform if you take an account with them.

 

I am wondering if a stocks and shares ISA account would be best as it's tax free, anyone here have any experience with such account?

There's a saying you may have heard of: "Don't let the tax tail wag the investment dog". In other words, don't invest just because something is ISA-able. If you would have invested in it anyway then wrapping it in an ISA may give you some icing on the cake (if your shares go up and your total gains (not just in your ISA, but all your capital gains) put you within Capital Gains Tax territory), and if you choose a provider such as Simply who don't charge an ISA admin fee then you've got nothing to lose by using an ISA wrapper.

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