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21 June 2021
21:50 hour

2 cheap UK shares I’d buy

The Motley Fool UK

16/05/2021 - 08:09

This Fool takes a look at two of the market's most undervalued stocks he'd buy for his portfolio of cheap UK shares right now. The post 2 cheap UK shares I’d buy appeared first on The Motley Fool UK.


READ THE FULL ARTICLE ON THE MOTLEY FOOL UK

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  1. I own some shares in a stock that the company decided to redeem 100% of the shares. (18/05/2021 - Reddit Stocks)
    So, I bought the shares kind of cheap and this is my first time going through a buy back or 100% redeeming of shares by the company. I want to know how the process takes place. Since I have the shares through TD, and this is a 100% redeem by the company, will this automatically take away my shares and corresponding share cost will be added to my account? Is there a formal procedure that I need to be a part of to ensure I get paid?   submitted by   /u/Firestorm_001 [link]   [comments]
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  2. How do people find these cheap stock companies? (10/02/2021 - Reddit Stocks)
    Is there a resource to find up and coming companies that start off super cheap? I feel like I hear about all these companies that moon but have never heard about them beforehand. Not asking for cheap ones that WILL moon, just where to find cheap companies so I can do my own research on them.   submitted by   /u/jaykaysian [link]   [comments]
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  3. Why are UK retail banks so cheap vs US banks (01/05/2021 - Reddit Stocks)
    So I’ve been looking at some UK retail Banks like NatWest Group, Lloyds, Barclays, Virgin Money, Santander and HSBC and they all range from £0.45 - £4.53. Looking at US banks like Bank of America is $40, Wells Fargo $45 etc. My question is less to do with US banks but why are UK so cheap? Will they ever go up or is the market cap to high? I own shares in UK banks but don’t know if I should just take the profit and run.   submitted by   /u/Smidday90 [link]   [comments]
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  4. : Warren Buffett still believes Berkshire Hathaway stock is cheap enough to buy (03/05/2021 - Market Watch)
    There's no bubble in Berkshire Hathaway Inc. shares, as Warren Buffett and Charlie Munger still believe they are cheap enough to spend more than $6 billion buying them back during in the first quarter, and perhaps more than $1 billion since then.
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  5. Rate my port? (14/02/2021 - Reddit Stocks)
    Should I sell my RY, ENB, CM and just buy some ETFs? ​ VOO 31 shares QQQ 27 shares RY.TO 48 shares ENB.TO 100 shares CM.TO 38 shares VGRO.TO 92 shares ARKK 10 shares VFV.TO 11 shares XUU.TO 22 shares ARKG 3 shares XIT.TO 7 shares VCN.TO 9 shares   submitted by   /u/FeignNewb [link]   [comments]
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  6. Buy the dip??!! But which stocks are actually cheap? crowd source shopping list for Monday. (07/03/2021 - Reddit Stocks)
    i'm 66% cash, and I want to make a shopping list. What's on your list that is actually cheap? my gut says this pullback has bottomed, or maybe one more bounce before liftoff ​ for example, i had NVDA on my watchlist, but looking at the multiples, they're still way high. Not sure if this is considered cheap. Shit still seems expensive in spite of the 19% pullback. I mean maybe $500 should the the ATH, and $450 is actual fair value. ????   submitted by   /u/pman6 [link]   [comments]
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  7. Why are T ITM calls so cheap? (14/06/2021 - Reddit Stocks)
    I’m looking at ITM calls for AT&T and they look excessively cheap. A 7/16 29.00C is around $0.50 right now and a 6/18 28.50C is around $0.60. This looks like a really good deal. Am I missing something?   submitted by   /u/DaJoNel [link]   [comments]
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  8. Nokia is buying their own shares. Time to buy cheap and hold for me! My Ape opinion is not an advice, is my only crazy decision. APES 2 da moon ???? ???????????????????????????????????????????????????????????????????????????????????? (15/03/2021 - Reddit Stock Market)
      submitted by   /u/2theinfinity [link]   [comments]
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  9. Tax man is gonna love me next year! Fingers crossed that Wall Street stops sleeping on SFT before these expire. If not, I’ve got a whole lot of cheap shares. (18/03/2021 - Reddit Stock Market)
      submitted by   /u/dahulk1984 [link]   [comments]
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  10. Here’s how I’d spend £2,000 on cheap UK dividend shares right now (24/05/2021 - The Motley Fool UK)
    Cheap UK dividend shares are a good way for me to be able to get a return from my cash balances. The benefit versus other income-paying investments is that I can target a yield that’s quite high relatively speaking. On the downside, my capital amount is technically at risk, as the share price fluctuates. This means my overall profit could be increased or decreased, irrespective of the dividends I receive. I see this risk as more of an opportunity, especially if I pick stocks that I think look cheap. So if I had £2,000 to invest right now, here’s how I’d look to get the best of both income and capital gains. Start with the right priority To begin with, I need to decide what’s my ultimate aim. Inevitably I need to tilt my thinking either towards income or growth. In this case I’m focusing on income via UK dividend shares. Any capital gain is a bonus, but not a necessity. This is important because it’s almost impossible to find a stock that’s cheap and could offer large upside, as well as offering an exceptionally high dividend yield. I need to compromise in some way. Once I’ve established what my priority is, I can then funnel down the number of stocks that fit the bill. How can I do this?  First, I’d look at the dividend yield of FTSE 100 stocks. I’d cut out those that aren’t paying a dividend, and then filter for a dividend yield I’d be happy with. For example, a yield of 4% and above. Then, to try and find cheap UK dividend shares, I’d look at the price-to-earnings ratio. Although not a perfect gauge of whether a stock is cheap or not, it’s a useful metric to look at. So I might specify the ratio has to be 15 or below. Allocating funds to cheap UK dividend shares Applying the two filters should allow me to find where I could be allocating my money. For example, SSE and Aviva are two companies that have yields above 4% and P/E ratios below 15. There are several others, so what I’d do is pick between three and six stocks in order to invest my £2,000. I want to diversify my risk, and so wouldn’t allocate it all to only a couple of cheap UK dividend shares. On the flip side, if my filters returned 50 potential companies, I wouldn’t pick them all. I can get the benefit of diversification without needing to invest that many stocks. Once I’ve invested in my portfolio, I do need to continue to keep an eye on it over time. I’m a long-term investor, but I might need to rebalance my holdings in years to come depending on performance. This could include taking profit if I’ve seen strong share price movement, or selling out if a dividend has been reduced or cut. Overall, I think my filters for yield and P/E ratio allow me to find good UK dividend shares that look cheap. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading Shares in this growth stock are falling and I might buy soon 3 UK dividend shares I’d buy today UK banks pledge to support access to cash 3 UK growth stocks to buy Here’s where DIY wills can go wrong jonathansmith1 has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Here’s how I’d spend £2,000 on cheap UK dividend shares right now appeared first on The Motley Fool UK.
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  11. JOAN earnings 6/3 (02/06/2021 - Reddit Stocks)
    Joann fabrics is a fabrics company that recently went public again. They’ve done very well since and have equity of about 300M which is .6 book value. They have a PE of 2.6.. which is incredibly cheap.. What am I missing? Why is this stock so cheap?   submitted by   /u/HaMEZSmiff [link]   [comments]
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  12. 120$ buys 100k shares and it's looking like it's about to pop off. Idk. What do you guys think? The own the Hightimes brand as well. #hightimes #weed #cheap stocks to run up into. (09/02/2021 - Reddit Stock Market)
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  13. How I’d invest £250 a month in cheap UK shares to aim for a six-figure portfolio (01/06/2021 - The Motley Fool UK)
    Cheap UK shares are where I’m looking to allocate my money. The cheap element refers to stocks that I feel are undervalued at present. Further, I’d look to allocate my cash within the UK, mainly via the FTSE 100 and FTSE 250. I think UK stock markets are still lagging in terms of performance versus the US. So how can I put all this into practice? Investing regularly in smaller amounts There are a few stages in my life when I’ll find myself with a large lump of cash. An annual bonus from work could be one. Or if I sell my house and downsize, I could have a surplus of cash. In these cases, I’d be fortunate enough to be able to invest in a number of cheap UK shares in one go. Unfortunately, these events don’t come around each month. Therefore, I’m better off planning to invest a smaller amount (like £250), on a regular monthly basis. Yet while this approach this may be out of necessity, I think that investing a smaller amount regularly is actually a better way to go. I can still achieve my aim of reaching a six-figure portfolio full of cheap UK shares, but it comes with less stress. I can put the £250 away each month and let it (hopefully) grow in the background without draining my liquidity. Over time, compounding helps my pot to get bigger. For example, if I invested £250 a month in stocks that generated an average return of 8% a year, I’d have a pot worth over £100k by year 17. Given my age, this time frame suits me fine. I know there are no guarantees, of course and investing in stocks could also lose me money. Which cheap UK shares should I buy? That said, I’m happy with this investing process, so I need to look at which shares I should buy. Given that I’ll be investing each month, it’s a dynamic process. What I mean by this is that a stock that looks cheap today might not be cheap one year down the line. So I’ll need to stay active and spot opportunities as they present themselves. At the moment, I’m looking at the opportunities for June. As such, I’m researching UK shares within the travel and tourism sector that I think look cheap. Ahead of a potentially bumper UK summer of higher consumer spending, I’d look to allocate my funds here.  In a few months’ time, these stocks might not be cheap anymore. In that case, I’ll assess what’s going on at that time. For example, in the autumn, the Bank of England will comment on how the economy is performing since lockdown eased. If the outlook is positive, concerns over negative interest rates could fall. In this case, I’d look to buy UK banking stocks at this point in time. Overall, the main point regarding cheap UK shares is that I need to keep my finger on the pulse of what’s going on in the market and the broader economy. That way, I hope I’ll be on my way to building a six-figure portfolio. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading Is the AMC Entertainment share price a bubble? Freetrade thinks these 3 ‘alternative’ dividend stocks are worth a second look Here’s a UK technology share I’d buy right now 1 AIM stock to avoid 4 tips to turn a staycation into a savecation jonathansmith1 has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post How I’d invest £250 a month in cheap UK shares to aim for a six-figure portfolio appeared first on The Motley Fool UK.
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  14. Suggestions for a tiny account? (15/06/2021 - Reddit Stocks)
    I made a $150 deposit but I'm real impatient when it comes to seeing profits so I've been trading options. It's pretty hard to find cheaper options that won't be to gamble-ish, but I've noticed options on some stocks are generally pretty cheap so I was wondering if anyone had maybe a list of cheap option stocks they like to trade. Alternatively, as I know options come with considerable risk, advice on finding good shares to day trade/swing for maybe a few days, I'd gladly take notes. Account is down pretty bad atm ngl but I know I can bring it back with some good plays and proper risk management Edit: I suppose by impatient I just mean since my account is so low I'd rather do something for quicker gain until I can afford to tie up some capital is longer holds/leaps. If I put my money in shares and I have to wait a month to see any reasonable gains, that doesn't feel worth my time to me if I KNOW I can make the same amount significantly faster. I've done research for months and know what I'm doing as much as I can without having extensive experience. I'm not looking for lectures on patience as I've already gotten tons from friends, family, and myself. I'm aware of what I'm doing and what it entails   submitted by   /u/Phantom579 [link]   [comments]
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  15. I don’t care if stock markets crash. I’m buying cheap UK shares today (13/03/2021 - The Motley Fool UK)
    I think today is a great time to buy cheap UK shares, but then I would say that. I think it’s nearly always a good time to buy shares. I’m not scared that stock markets could crash if this year’s post-pandemic recovery disappoints or inflation makes a shock comeback. The ISA season is in full swing, and I’d rather buy cheap UK shares today than wait to see what happens tomorrow. The first reason is that a stock market crash is impossible to predict. At any point of the investment cycle, we will find somebody saying the sky is about to fall in. They may be right one time in 10, and will boast about that for the rest of their lives. The rest of the time they will be wrong.  Don’t try to time the market If I listen to the doomsayers I will never buy UK shares when they are cheap, and end up kicking myself as a result. History shows that over the longer run, shares go up more than they go down. It therefore pays to put my money in the market whenever I have some to spare, and leave it there. Timing my entry is hopeless. I will get it wrong more than I get it right. While I wait, my money will be earning next to nothing in cash. It is important to remember that shares pay dividends, as well as rising in value. The FTSE 100 is set to yield around 3.5% this year. Some top UK shares pay dividend income worth more than 6% or 7%, and many are cheap. I will not benefit if I am sitting on the sidelines, fretting over the next crash. Yes, shares do come with risk. But I will only earn that income if I buy them. And by diversifying, I reduce my single-stock risk. I think there are plenty of dirt-cheap opportunities out there right now. Naturally, if stock markets do crash, they would get cheaper still. On the other hand, if markets rose, they would get more expensive. Since I don’t know which is going to happen, the best thing I can do is take my chances and snap up cheap UK shares when I see them. I’d buy cheap UK shares now If markets do crash later, I won’t kick myself. I’m not to blame. Instead, I will take the opportunity to buy more UK shares, at the cheaper price. And I will leave the rest of my money invested for the recovery. It will come. I understand why some investors run scared of a possible stock market crash. Nobody wants to invest only to see shares crash next day. The best way round this is to drip feed money in, to smooth over the ups and downs. I invest every month. Sometimes I pick up UK shares when they are cheap. At other times, when they are expensive. Either way, it doesn’t bother me because in the longer run, buying and holding shares is the best way I know to build the money I need for my retirement. I’d make a start with top stocks like these. 5 Stocks For Trying To Build Wealth After 50 Markets around the world are reeling from the coronavirus pandemic… And with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains. But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be daunting prospect during such unprecedented times. Fortunately, The Motley Fool is here to help: our UK Chief Investment Officer and his analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global lock-down… You see, here at The Motley Fool we don’t believe “over-trading” is the right path to financial freedom in retirement; instead, we advocate buying and holding (for AT LEAST three to five years) 15 or more quality companies, with shareholder-focused management teams at the helm. That’s why we’re sharing the names of all five of these companies in a special investing report that you can download today for FREE. If you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio, and that you can consider building a position in all five right away. Click here to claim your free copy of this special investing report now! More reading How I’d invest £2k in a Stocks and Shares ISA BP’s share price is rising. Should I buy the stock now? How to find free online business courses The Card Factory share price is on the rise. Should I buy now? 3 reasons a stock market rally can happen soon. And here’s what I’d buy next Harvey Jones has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post I don’t care if stock markets crash. I’m buying cheap UK shares today appeared first on The Motley Fool UK.
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  16. Why is $JD so cheap right now? (13/04/2021 - Reddit Stocks)
    Jd.com smashed last earnings, having a record quarter with 4x earnings as last year. With a pe Ratio of 16 (!!!) im just scratching my head why this stock is so cheap. The only reason i could think of was new competition from BABA now that they are kinda cleared of CCP concerns. Do you guys have any idea?   submitted by   /u/aloahnoah [link]   [comments]
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  17. Here’s why I’d buy cheap stocks right now and hold them to 2025 (19/02/2021 - The Motley Fool UK)
    Over the next four years, I anticipate adding quite a few cheap stocks, otherwise known as value shares, into my investment portfolio. I already hold a few, such as National Grid and Persimmon, as well as the investment trust, Merchants Trust. Value shares tend to perform better during any period of inflation As a general rule, value stocks perform better in high inflation periods and growth stocks perform better during low inflation. Some experts are warning inflation will exceed 2% by the end of this year. That would be a big rise from now and would likely have an effect on the performance of growth shares versus value shares. Overall, it’s unclear if, or when, inflation could rise significantly. What is more clear is that cheap stocks are a better hedge if it does occur. Cheap stocks provide more margin of safety Given there may be a reversal in the fortune of many growth shares, I’d plump for cheap stocks because there’s a greater margin of safety. Buying shares with price-to-earnings ratios that are below 15 – a level that is often seen as separating undervalued shares from the rest – offers some protection against any downgrade in outlook or earnings. Shares on sky-high valuations should, and often do, fall much harder on any bad news. I think Benjamin Graham, the inspiration for legendary investor Warren Buffett, was correct to say valuation and a margin of safety are very important. Cheap shares have underperformed Despite the low valuations, cheap shares have underperformed growth shares in the low-interest rate, low-inflation economic conditions we’ve nearly continuously had since the financial crash. The stock market crash of 2020 still means there are opportunities to pick up cheap UK shares.  For me, the historical underperformance of value shares versus more racy and highly-rated growth stocks isn’t off-putting. While I may add some modestly valued growth stocks to my portfolio, many of my new stock picks over the next four years to 2025 will be cheap stocks. The thing to watch out for when it comes to investing in cheap shares though is, value traps. This is where a share appears cheap but actually, the valuation is low because the business is worsening. That could well mean that the share price will fall much further. A low P/E doesn’t in itself make a share worth buying. I’d want to get a bigger picture and understanding before committing my money to a value share.  That’s why I’d make sure to look at revenue and operating profit growth and how a company compares to the competition. I’d also look at whether the industry is growing or facing challenges. There are also many other considerations to take into account but these serve as a starting point.  The bottom line is, as always, I’ll research shares thoroughly before investing, even if they are a cheap stock. 5 Stocks For Trying To Build Wealth After 50 Markets around the world are reeling from the coronavirus pandemic… And with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains. But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be daunting prospect during such unprecedented times. Fortunately, The Motley Fool is here to help: our UK Chief Investment Officer and his analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global lock-down… You see, here at The Motley Fool we don’t believe “over-trading” is the right path to financial freedom in retirement; instead, we advocate buying and holding (for AT LEAST three to five years) 15 or more quality companies, with shareholder-focused management teams at the helm. That’s why we’re sharing the names of all five of these companies in a special investing report that you can download today for FREE. If you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio, and that you can consider building a position in all five right away. Click here to claim your free copy of this special investing report now! More reading My FTSE best stocks to buy now list: 2 to consider for 2021 and beyond What is a house price bubble? The NatWest share price has been climbing. Should I buy now? I think these are 3 of the best stocks to buy now for passive income 2 of the best investment trusts to buy now Andy Ross owns shares in National Grid, Persimmon and Merchants Trust. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Here’s why I’d buy cheap stocks right now and hold them to 2025 appeared first on The Motley Fool UK.
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  18. I’d buy dirt-cheap shares in an ISA and hold them for 10 years (12/03/2021 - The Motley Fool UK)
    I like a bargain – who doesn’t? – and that’s why I’m keen to buy dirt-cheap shares for this year’s Stocks and Shares ISA allowance. Buying top UK companies when their shares are relatively depressed can be a winning strategy, provided I’m patient. By investing during the lows of the market cycle, I hope to benefit from the upswing when it comes. Of course, there’s no guarantee that will happen. Some shares are dirt-cheap for a reason. A company could be in trouble, and get even cheaper still. Nobody gets it right every time. I still think now is a good time to hit the sales. Despite last year’s recovery, the FTSE 100 has idled for a while. US tech stocks have been selling off. Investors got carried away with last year’s vaccine breakthroughs, but now have two worries. I’m looking for dirt-cheap shares The first concern is that the pandemic could drag on as many vaccination programmes prove sluggish. The second is that when people are set free they will go an an almighty splurge and the global economy will overheat. President Joe Biden’s stimulus plan has worsened inflation fears, as it will pump another $1.9trn into the US economy. Last year’s fiscal and monetary stimulus is already being followed by weird bubbles, such as the Reddit GameStop frenzy, and Bitcoin. Investors seem to be worrying about a recessionary slump and inflationary boom, at the same time. But I think second-guessing markets in this way is a fool’s game either way. I listen to ace investor Warren Buffett on that subject, who said: “I never have an opinion about the market because it wouldn’t be any good and it might interfere with the opinions we have that are good.”  With that in mind, all I can do is search the market for shares I think are dirt-cheap today, and then hold them until the market (hopefully) comes round to my way of thinking. I might use the P/E ratio to identify potential dirt-cheap stocks. The FTSE 100 is full of good companies trading at less than 10 times earnings right now. That would only be a starting point, though. I would then look at earning patterns both before and during the pandemic, and analyst projections for the future. The ISA season is here I would work through recent company results and reports, to see where management thinks opportunities lie, and whether I agree with them. I would look at how much cash companies generate, and how much debt they carry. My aim is to work out whether a particular dirt-cheap share is a bargain or value trap. I would favour companies with a strong competitive ‘moat’ that deters competitors. Then I would listen to Warren Buffett again. He said: “Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.” That’s my minimum time scale and should give my dirt-cheap shares plenty of time to swing back into form. This stock tempts me right now. There’s a ‘double agent’ hiding in the FTSE… we recommend you buy it! Don’t miss our special stock presentation. It contains details of a UK-listed company our Motley Fool UK analysts are extremely enthusiastic about. They think it’s offering an incredible opportunity to grow your wealth over the long term – at its current price – regardless of what happens in the wider market. That’s why they’re referring to it as the FTSE’s ‘double agent’. Because they believe it’s working both with the market… And against it. To find out why we think you should add it to your portfolio today… Click here to get access to our presentation, and learn how to get the name of this 'double agent'! More reading FTSE 100: this is what I’d do about the cheap Tesco share price! Should I save for a 10% deposit if possible? Here’s why I’d buy Polymetal International shares for both income and growth Trainline shares are up 25%. Here’s what I’d do Warning! £103m ‘burglary bounce’ expected post-lockdown Harvey Jones has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post I’d buy dirt-cheap shares in an ISA and hold them for 10 years appeared first on The Motley Fool UK.
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  19. 3 steps I’d follow to find cheap UK dividend shares to invest in (14/04/2021 - The Motley Fool UK)
    There are two components that are of interest to me when looking to find cheap UK dividend shares. The first element is the price, as I don’t want to be buying a stock that I know is overvalued. Second, I want to look at the dividend I’ll be receiving. I want to be happy with the dividend per share, along with the dividend yield. So on the basis of the above, three steps will help me along the way. Trying to find a cheap share The first step I could look at would be the price-to-earnings ratio, to try and find a cheap UK dividend share. Usually, a low figure could suggest the company is undervalued. This is because the size of earnings dwarfs the share price, which should be a good sign. If earnings attributable to shareholders are high, then it’s logical to think the dividend paid will be generous.  What makes a P/E ratio low enough to for me buy? That’s less easy to compute. Anything below the FTSE 100 average is a good starting point. However, P/E multiples also depend on the industry, so I would want to look at the ratio in comparison to competitors as well.  One point I do need to remember though is that a low P/E ratio doesn’t always mean a cheap UK dividend share. The stock’s history is important. For example, if the share price has been falling due to bad news, and the earnings figure used is stale, the ratio could be misleading. In fact, this could indicate the dividend might be cut, so I need to do my homework. Using yield and cover to find UK dividend shares Step two involves checking the dividend yield of different stocks within the market. This information is readily available, and gives me a good barometer regarding which UK dividend stocks offer the highest yield.  Just like the P/E ratio though, the figure has to be used carefully. Technically, I could just buy the stock with the highest yield. After all, this offers me the highest dividend relative to the price of the stock. But again, the share price may have been falling for valid reasons. If the last dividend was paid out several months ago, the dividend yield might not accurately reflect the current situation of the firm. It may see a dividend cut in the future, reducing the yield. So for UK dividend shares, I need to look at the sustainability of the dividend. This is my third and final step. I can use the dividend cover metric to help me in this regard. It shows how much the earnings cover the dividend. Logically, I want the figure to be above one, and a high number is beneficial. My thinking is that if the company has enough earnings to cover the dividend, then it ranks as a sustainable (and cheap) UK dividend share worth buying.  Although I need to be careful with financial equations, the above three steps involving ratios should help me when trying to pick out shares worth buying. There’s a ‘double agent’ hiding in the FTSE… we recommend you buy it! Don’t miss our special stock presentation. It contains details of a UK-listed company our Motley Fool UK analysts are extremely enthusiastic about. They think it’s offering an incredible opportunity to grow your wealth over the long term – at its current price – regardless of what happens in the wider market. That’s why they’re referring to it as the FTSE’s ‘double agent’. Because they believe it’s working both with the market… And against it. To find out why we think you should add it to your portfolio today… Click here to get access to our presentation, and learn how to get the name of this 'double agent'! More reading 3 stocks I’d buy for this raging bull market JD Wetherspoon’s share price is rising. Should I buy this reopening stock now? The Tesco share price is falling. Here’s why I’d buy Carnival’s share price is rising. Should I buy this ‘reopening’ stock now? Can I buy shares in Coinbase? jonathansmith1 has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post 3 steps I’d follow to find cheap UK dividend shares to invest in appeared first on The Motley Fool UK.
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  20. I don’t care if experts are warning of a stock market crash, I’m buying cheap UK shares today (12/02/2021 - The Motley Fool UK)
    While some investors live in fear of a stock market crash, I prefer to see it as a great opportunity to buy cheap UK shares. That partly comes from years of writing for Motley Fool. We urge readers to go shopping for shares in a correction, when their favourite stocks are suddenly trading at reduced prices. When markets crash, investors tend to dump good companies along with the bad. By picking my targets carefully, I can load up on the very best cheap UK shares, and benefit when they recover. So when I hear experts saying we are in a stock market bubble and it may burst, I get ready to shop.  It is a lot easier to keep my cool knowing that retirement is still a long way off. Mine is more than a dozen years away, and even if stock markets do crash this year, I think there is plenty of time for them to recover before I retire. I’m not scared of a stock market crash My attitude may change as I get closer to retirement. However, at that point, I will hold some money in lower risk investments such as bonds, and will draw income from those until the stock market recovers. This raises an interesting question, though. If I prefer to buy cheap UK shares in the sales, why don’t I only buy them in the middle of a crash? In other words, why would I buy them today? The first answer is that I think UK shares are relatively cheap, with the FTSE 100 still trading more than 1,000 points lower than it did a year ago. Now there is a good reason why UK shares are cheaper than they were, given the economic damage inflicted by the pandemic. However, this has also been matched by the unprecedented amounts of global stimulus unleashed by global central bankers. I think when the world finally emerges from lockdown, we will all go on a spree, and share prices will power upwards. That’s only my view though. I could be wrong. People usually are when they make predictions! I’m checking out cheap UK shares today There is another reason why I would buy cheap UK shares today rather than wait for a crash. I have no idea whether the crash will come, let alone when. Nobody does. Predicting future stock market movements with any consistency is impossible. This market could rise 50% from here. If it then fell 20%, I would still be well ahead. Also, if I’m out of the market, I will not be generating any dividends from my portfolio, or reinvesting them for growth. My money will not be working at all, especially if I leave it in cash. We may see a stock market crash this year, we may not. I have no idea. Nobody does. What I do know is that UK shares look cheap enough to buy today. If markets crash, they will look even cheaper, and I will buy more of them. I’m looking at this opportunity now. The high-calibre small-cap stock flying under the City’s radar Adventurous investors like you won’t want to miss out on what could be a truly astonishing opportunity… You see, over the past three years, this AIM-listed company has been quietly powering ahead… rewarding its shareholders with generous share price growth thanks to a carefully orchestrated ‘buy and build’ strategy. And with a first-class management team at the helm, a proven, well-executed business model, plus market-leading positions in high-margin, niche products… our analysts believe there’s still plenty more potential growth in the pipeline. Here’s your chance to discover exactly what has got our Motley Fool UK investment team all hot-under-the-collar about this tiny £350+ million enterprise… inside a specially prepared free investment report. But here’s the really exciting part… right now, we believe many UK investors have quite simply never heard of this company before! Click here to claim your copy of this special investment report — and we’ll tell you the name of this Top Small-Cap Stock… free of charge! More reading Stock market recovery: is it too late to make a passive income from cheap shares? 1 high-growth UK tech stock I’m watching in 2021 I was right about the GameStop share price. Here’s what I’m doing now 2 FTSE 100 shares I’d add to my Stocks and Shares ISA in February Should I buy Hipgnosis stock or shares in Round Hill Music? Harvey Jones has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post I don’t care if experts are warning of a stock market crash, I’m buying cheap UK shares today appeared first on The Motley Fool UK.
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  21. Tootsie Roll Industries Inc. $TR. at $33.22 and looks like it wants to run. (10/03/2021 - Reddit Stocks)
    Tootsie Roll is a 130 year old company with fairly large 24% short position. 95% of the company is held by insiders that pay themselves a nice 3% dividend and since they do very well with that they tend to hold their shares so there isn't a lot of shares on the market that trade. Daily volume is fairly low and over the last few weeks it has been consistently below average volume. 52 Week price range is $28.15 - $57.26. Options are cheap and with a little volume this one will take another run like it did in January as there just isn't a lot of shares out there to buy and that means there isn't a lot of shares to cover that short interest. Yes this has it's challenges but what it does not have is a lot of risk. It is trading at or below the year average and is not going away. Take a look at them. Do a little DD and see if this one works for you. I think it is going to run because eventually shorts have to cover and it is drifting up not down... IMO anyway. Few other thoughts, This is a re-opening play as a large portion of their sales is to recreation type venues including amusement parks and theatres. Everyone knows their product and while some love it and some hate it you definitely all know it. As a long hold, and not for the possible squeeze that may or may not happen over the course of they year it will go up as it is generally strong though summer and of course Halloween. Regardless of how you want to look at it I think this is a buy with a few upsides. I have 5000 shares and March 19 calls at 35.   submitted by   /u/ToastTurtle [link]   [comments]
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  22. Cheap UK stocks: should I be buying airline shares ahead of the summer? (03/06/2021 - The Motley Fool UK)
    Airline shares have been the topic of much conversation since the pandemic began. During the stock market crash last year, airline shares were some of the hardest hit. For example, the International Consolidated Airlines Group (LSE: IAG) share price fell around 70% during the depths of the crash from 435p to around 130p, before recovering to levels around 200p at the moment. So when looking for cheap UK stocks to buy, should airline shares be high up on my list? The case for buying airline shares If I want to look at UK stocks that are cheap based on their past share price levels, some airlines do tick the box. IAG (mentioned above), had a share price double current levels as we came into 2020. Based on current levels, I could make a strong case that the shares should move higher. For example, in the March-December period of 2020, passenger kilometers flown were down 87% versus 2019. This was an average of the airlines within the IAG group. These include the likes of British Airways and Aer Lingus. Now I don’t think this will fully bounce back over this summer, or even by the end of the year. But I don’t see how it will fall further. The UK has a traffic light system on countries available to travel to, and in my opinion the green list will grow over the summer. This is because Europe is picking up the pace of vaccines being rolled out. Further afield, long-haul business travel could start to see an increase in demand later this year. If we see people continue to return to offices, the next step for corporates is to resume business travel. I think this makes IAG a cheap UK stock, to buy for the pick-up in momentum over the course of this year and beyond. Are all airlines cheap UK stocks? Of course, a cheap UK stock may be cheap for a reason, because no one wants to buy it! This could be the case with airline shares. There’s concern that continued high operating costs and the size of debt taken on will make it hard to generate profitability for 2021. For example, easyJet released its fiscal half-year results a few weeks ago. My colleague Royston Roche covered it in detail here.  As he noted, easyJet shares fell after the results came out. I could say that a cheap UK stock got even cheaper. ut there were good reasons for the fall. The business had a cash burn rate of £38m a week in Q2, despite revenue falling by 90% year-on-year. This tells me that even without much flying, costs are still high. My concern across the industry is that even if we see flying miles increase, the amount of cash burnt so far this year (not to mention 2020) is huge. It’ll likely take years to adjust debt back to sustainable levels. If the Bank of England increases rates to counter inflation later this year, it could make it even more expensive to restructure this debt. Overall, it’s impossible to say all airlines are cheap UK stocks to buy now. I do think there’s value in individual companies. In this case, although I wouldn’t buy easyJet shares, I’d consider buying IAG. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading Should I Invest in IAG shares right now? The IAG share price has crashed 7% today! Here’s why Would I buy these 2 FTSE 100 reopening stocks now? Is the IAG share price still cheap enough to buy? The IAG share price soars 37% in 3 months. Can it go higher? jonathansmith1 has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Cheap UK stocks: should I be buying airline shares ahead of the summer? appeared first on The Motley Fool UK.
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  23. 2 dirt-cheap shares I’d buy to hold for 10 years (08/03/2021 - The Motley Fool UK)
    Considering the improving outlook for the UK economy, I’ve been looking for dirt-cheap shares to add to my portfolio recently. I’m looking for stocks that I can buy and hold for a least the next decade, so I don’t have to worry about finding new investments. Research also shows that buying and holding stocks can produce better returns in the long term, although this isn’t guaranteed. This strategy might not suit all investors.  Still, I’m comfortable with the level of risk involved with this kind of strategy. With that in mind, here are two dirt-cheap shares I’d buy with the view to holding them for the next decade.   Dirt-cheap shares  Recruitment consultancy Robert Walters (LSE: RWA) has reported a substantial decline in the demand for its services over the past year. As a result, investor sentiment towards the business has plunged.  However, I’m willing to look past these short-term headwinds. I think there’ll always be a need for the recruitment services Robert Walters provides. And while the firm might have seen a drop off in demand over the past 12 months, I think this demand will return as the economy recovers.  That’s why I’d buy the stock as part of a portfolio of dirt-cheap shares today. That said, this business isn’t without its risks. Recruitment is a highly cyclical business, as we’ve seen over the past 12 months. The company’s size will help it weather periods of uncertainty, but any reputational damage could destabilise the business. As such, while I’d buy the stock to hold for the next decade, I plan to keep an eye on these challenges. Property market growth The UK property market is hugely important to the country’s economy. The market is highly cyclical, but some sections are more stable than others. That’s why I’d buy LSL Property Services (LSE: LSL) as part of a portfolio of dirt-cheap shares today. This company provides a range of services for the property sector, including residential sales, lettings, surveying, conveyancing and advice on mortgages and non-investment insurance products. I think this could be one of the best ways to invest in the property sector, aside from buying a property directly. After recent declines, shares in LSL are trading at a P/E of 9.7, based on City estimates for 2020. That’s compared to the market average of 16. Of course, these are just estimates at present, and there’s no guarantee the company will hit these targets. That’s one of the risks of investing here. The corporation may also suffer if the UK property market takes a turn for the worst. Its diversification may help the business with uncertainty, but a sudden slump in house prices would almost certainly impact the company.  I plan to keep an eye on these risks over the next few years. But despite the challenges the group faces, I’m incredibly optimistic about its long-term potential. That’s why I’d add the stock to my portfolio of dirt-cheap shares today. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading 2 UK shares I’d buy with £5k today Argo Blockchain shares: have I missed the boat to invest? Boohoo’s share price has fallen. Should I buy the stock now? The London Stock Exchange share price slides, is this stock a good investment? Card Factory’s share price has soared. Should I buy this stock now? Rupert Hargreaves has no position in any of the shares mentioned. Please to dirt cheap shares could be a attractive addition to any portfolio for the next decade has been looking for dirt cheap shares to add to his portfolio with the goal of holding the next 10 yearsThe Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post 2 dirt-cheap shares I’d buy to hold for 10 years appeared first on The Motley Fool UK.
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  24. The best cheap UK shares to buy right now (21/02/2021 - The Motley Fool UK)
    After recent market turbulence, I’ve been looking for the best cheap UK shares to buy right now. Here’s a list of the stocks I’m considering adding to my portfolio over the next 12 months. Some of these companies are riskier than others. My analysis is based on their potential over the next few years, rather than speculating on what could happen over the next few weeks or months.  Therefore, my list of the best cheap UK shares to buy right now might not be suitable for all investors. The outlook for the UK and global economies are highly uncertain, so it’s more important than ever investors shouldn’t outlay more than they can afford to lose.  The best cheap UK shares I think some of the best cheap UK shares on the market right now are recovery plays. Companies such as Marks & Spencer, John Wood, and FirstGroup.  All of these businesses operate in different sectors and industries. They all face different headwinds, outlooks, and challenges. M&S is struggling to remain relevant in the viciously competitive retail market. Meanwhile, engineering group John Wood has suffered in the oil market downturn. The pandemic has eliminated the demand for FirstGroup’s public transport. The challenges these companies face cannot be understated. However, they also have opportunities as well. That’s why they feature on my list of the best shares to buy right now. For example, Marks & Spencer has reported explosive growth for its food offering. Management intends to double down on this going forward. John Wood has been expanding into the rapidly growing renewable energy market. As the world tries to become more efficient and less reliant on individual vehicles, I think the demand for FirstGroup’s public transport options will grow in the long term.  Despite the challenges these groups face, I’d buy these companies for my portfolio based on their long-term growth potential. Best shares to buy right now  Another company on my list of stocks to pay close attention to over the next 12 months is the outsourcing group Capita.  This business has run into multiple problems over the past five years. Management has spent a tremendous amount of time and effort overhauling the group to get past these issues.  It finally looks as if Capita is putting these problems behind it which, in my opinion, is incredibly positive for the group’s long-term potential.  That’s not to say the company won’t face any headwinds from now on. The errors it made in the past significantly impacted its reputation and that of the outsourcing industry in general. This could mean the group sees a lower level of demand going forward. As such, it may never return to its former glory.  Still, I’d buy this company as a play on the UK economic recovery. Increased activity may lead to higher demand for its services. This would boost Capita’s top and bottom lines and provide more funding for the business to invest in growth.  There’s a ‘double agent’ hiding in the FTSE… we recommend you buy it! Don’t miss our special stock presentation. It contains details of a UK-listed company our Motley Fool UK analysts are extremely enthusiastic about. They think it’s offering an incredible opportunity to grow your wealth over the long term – at its current price – regardless of what happens in the wider market. That’s why they’re referring to it as the FTSE’s ‘double agent’. Because they believe it’s working both with the market… And against it. To find out why we think you should add it to your portfolio today… Click here to get access to our presentation, and learn how to get the name of this 'double agent'! More reading UK stock investing: 2 of the best shares to buy in an ISA right now 2 of the best shares to buy now UK share investing: 4 of the best cheap stocks to buy now Why I’d ignore the TUI share price and buy other cheap UK shares Stock investing: why I’d drip-feed £300 a month into an ISA Rupert Hargreaves has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post The best cheap UK shares to buy right now appeared first on The Motley Fool UK.
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  25. GME - Lets do this! Mother of all Wedges break out, consolidated, breakout again! LIMIT orders, not market orders, use cheap puts/spreads to hedge. Can't go wrong with shares, don't use built-in stop losses (watch your position!) Possible massive (17/05/2021 - Reddit Stock Market)
      submitted by   /u/flaming_pope [link]   [comments]
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  26. 2 cheap FTSE 100 shares I’ll buy to boost my portfolio (09/02/2021 - The Motley Fool UK)
    There are mean Cheap FTSE 100 shares available on the back of the Covid-19-induced market slump. Despite a partial recovery, the FTSE 100 is still below its level of a year ago. That’s why I intend to pick up bargain shares now in the hope of drawing a passive income from the dividends for years to come. Cheap FTSE 100 shares I like Both the shares I’d pick to boost my portfolio are ‘defensive’. They’re BAE Systems (LSE: BA) and Tesco (LSE: TSCO). I think that can do well in the long term, given that their products or services (defence and groceries respectively) should always be in demand, no matter what’s happening in the economy. BAE Systems has a dividend yield approaching 5% and the shares trade on a price-to-earnings ratio (P/E) of 10. The P/E is the ratio of the share price to the company’s earnings per share. It can be used to assess whether companies are good value. BAE’s reading of 10 indicates good value to me. Looking at its financials, revenue has increased from £16.8bn in 2015 to £18.3bn in 2019. And operating profit went from £1.4bn to £1.7bn. So there’s steady growth at the defence company. It has high barriers to entry given its strong government relationships and the cost of capital to set up a defence manufacturing firm. This means I’m confident it can continue to be a steady performer, whatever happens to the UK and global economy. It looks to me to be cheap and able to provide a passive income for my portfolio. I’d be concerned though if ESG investing means institutional investors shun the shares. Another risk of course is the company’s reliance on a small number of countries’ defence budgets. A much improved business in recent years Under the previous CEO, Tesco became a much steadier and better business than it had been, in my opinion. It’s become more UK-focused and expanded here with the acquisition of wholesaler Booker in 2017. The shares are on a P/E of 13 I think they look cheap. On top of that, when it comes to the income the shares will generate, the dividend yield is just under 4%. And this month the grocer will also be paying a large special dividend to shareholders. There’s also a relatively new CEO at the helm, which could in itself provide a boost for the shares. It’s not entirely without risk, as that relatively low P/E indicates. I feel the biggest danger for investors remains the threat of margin-crushing price wars. There’s also the issue of discounters continuing to take market share from Tesco and preventing it from getting back to the kind of margins it enjoyed a decade or so ago. Be wary of value traps As always, when it comes to shares that appear cheap, I’m wary. They can be value traps, which means a share is cheap because the business is out of favour with investors as its future looks uncertain. Even an already cheap share price can continue to slide, so value investing isn’t without its risks. Value investing may not be everyone’s favoured strategy, but I intend to add these two cheap FTSE 100 shares to my portfolio and hope they steadily grow over the next few years. 5 Stocks For Trying To Build Wealth After 50 Markets around the world are reeling from the coronavirus pandemic… And with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains. But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be daunting prospect during such unprecedented times. Fortunately, The Motley Fool is here to help: our UK Chief Investment Officer and his analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global lock-down… You see, here at The Motley Fool we don’t believe “over-trading” is the right path to financial freedom in retirement; instead, we advocate buying and holding (for AT LEAST three to five years) 15 or more quality companies, with shareholder-focused management teams at the helm. That’s why we’re sharing the names of all five of these companies in a special investing report that you can download today for FREE. If you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio, and that you can consider building a position in all five right away. Click here to claim your free copy of this special investing report now! More reading Passive income stocks: should I buy Tesco shares right now? The Tesco share price is rising! Should I buy the stock now? Dividend stocks: 3 I’d buy from the FTSE 100 index 2 FTSE 100 shares I think Warren Buffett would buy FTSE 100 watch: why I’m not bowled over by the cheap Tesco share price! Andy Ross owns no share mentioned. The Motley Fool UK has recommended Tesco. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post 2 cheap FTSE 100 shares I’ll buy to boost my portfolio appeared first on The Motley Fool UK.
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  27. 2 cheap UK shares to buy now (23/02/2021 - The Motley Fool UK)
    Between Brexit and the pandemic, UK shares still look cheap from a global perspective. The price-to-earnings ratio of the Dow Jones Index in the US is 32. That compares to around 23 for the FTSE All Share index. That is one reason I am looking for cheap UK shares to buy now. Here are two I’ve been buying this year. An out-of-favour engineering firm Looking at the chart for engineering conglomerate Babcock (LSE: BAB) can be demoralising. For many years the company’s shares have kept falling. Last month things took a turn for the worse, after the company announced that it may need to write down the value of some contracts. So, why is this among my list of cheap UK shares to buy now? I think the warning of the potential write-down was actually good news, not bad. It wasn’t signalling that the business value has dramatically deteriorated, in my interpretation. Instead, it showed that a new management team were taking a disciplined look at how best to account for the company’s performance. I see that as being like a dentist telling me I need a filling. The news may be hard to take, but it’s better for me than just saying nothing. Until we get a clearer sense of what Babcock’s future earnings are likely to be, it is hard to say whether the valuation is fair or not. However, the company’s shares now suggest a company valuation of just £1.3bn. That seems low for a company with long-term relationships with customers like the Royal Navy as well as a £16.8bn order book. Babcock could yet turn out to be a value trap. Past earnings aren’t indicative of future earnings, especially if the board decides that prior accounting methodology isn’t the best one for the company to use in future. Some analysts worry that to raise cash, the company could need a rights issue. I do think that is a possibility, but continue to see value in the company’s assets. Directors buying shares last month also boosted my confidence in my own purchase. Imperial Brands is among the cheap UK shares to buy now If there was a bank account offering a 10% interest rate, the Sunday papers would be full of it. But cigarette maker Imperial Brands (LSE: IMB) offers roughly a 10% yield and continues to see its share price in the doldrums. Now, a yield isn’t the same as an interest rate. There is no guarantee that it will be sustained, and indeed last year the company cut its dividend level. Added to that, the company’s focus on cigarettes worries some analysts given the structural shifts in cigarette usage in many markets. Despite all of that, I still have Imperial on my list of cheap UK shares to buy now. The company owns brands such as Rizla and John Player Special. While cigarettes are declining in developed markets, it continues to have pricing power. The company’s recent strategy session with investors indeed emphasised plans to offset volume declines by continuing to click prices up. Meanwhile, it continues to pay out a quarterly dividend which yields close to 10% at the current share price. For me it’s a cheap UK share hiding in plain sight. There’s a ‘double agent’ hiding in the FTSE… we recommend you buy it! Don’t miss our special stock presentation. It contains details of a UK-listed company our Motley Fool UK analysts are extremely enthusiastic about. They think it’s offering an incredible opportunity to grow your wealth over the long term – at its current price – regardless of what happens in the wider market. That’s why they’re referring to it as the FTSE’s ‘double agent’. Because they believe it’s working both with the market… And against it. To find out why we think you should add it to your portfolio today… Click here to get access to our presentation, and learn how to get the name of this 'double agent'! More reading 2 UK dividend stocks with 9% yields I’d buy today Top income stocks for February 2021 Stock investing: 3 of the best income shares I’d buy right now A dirt-cheap FTSE 100 share to buy today for passive income Top British stocks for February 2021 christopherruane owns shares of Babcock International Group and Imperial Brands. The Motley Fool UK has recommended Imperial Brands. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post 2 cheap UK shares to buy now appeared first on The Motley Fool UK.
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  28. Should I wait until the next stock market crash to buy cheap UK shares? (17/02/2021 - The Motley Fool UK)
    The stock market’s recent rally means it may be more difficult to buy cheap UK shares today than it was a few months ago. After all, indexes such as the FTSE 350 have moved higher as investor sentiment has strengthened. As such, it could be argued that waiting for the next stock market crash before buying UK stocks is a sound move. Since no bull market has lasted in perpetuity, this could offer some appeal. However, with many FTSE 350 stocks still trading on low earnings multiples, there may be opportunities to unearth good value companies on a case-by-case basis. Buying cheap UK shares in a stock market crash The past performance of the stock market shows it’s been possible to buy cheap UK shares during a crash. March 2020 is a prime example of this, when even high-quality companies traded at low prices for a limited time. Other examples include the global financial crisis and dot com bubble, when investor fear caused many companies to have low prices for a short amount of time. Such events have always occurred after a bull market. In fact, no rise in the stock market’s price level has ever been permanent. This could mean a strategy of waiting for a lower stock market price level is a sound means of capitalising on the market cycle. Buying low and selling at higher prices could realistically be a means of earning a higher return than the wider stock market over the long run. Predicting a stock market crash However, the problem with this plan is predicting when a stock market crash will produce a wide range of cheap UK shares. That’s a very tough task. Last year’s market decline highlighted the difficulties in trying to second-guess market movements. Ultimately, the future is always a known unknown. Furthermore, many UK stocks continue to trade at cheap prices. Although the stock market has rallied since its March 2020 lows, indexes such as the FTSE 100 and FTSE 250 continue to trade at lower prices than they did a year ago. This could indicate there are good-value shares on offer that can be purchased now and held for the long term. In time, they could produce impressive returns in a likely stock market recovery and a period of improved economic growth. An uncertain future is always ahead Therefore, waiting for a stock market crash before buying cheap UK shares could be a difficult strategy to execute. Impatience from low returns of cash and the challenges in predicting the stock market’s movements may mean that identifying undervalued shares at the present time on a case-by-case basis is a more prudent approach. It could allow an investor to obtain favourable risk/reward opportunities on a long-term investment outlook. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading FTSE 100 stocks: a UK share I think will exit Covid-19 in terrific shape UK investing: I think these are the best shares to buy now The Rolls-Royce share price is under £1: should I buy today? 3 UK shares I’d buy right now in my ISA Unilever shares: should I buy? Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Should I wait until the next stock market crash to buy cheap UK shares? appeared first on The Motley Fool UK.
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  29. Why is CareCloud ($MTBC) trading at such a cheap multiple? (09/04/2021 - Reddit Stocks)
    Title basically. A company with YOY revenue growth of 63% with a P/S of 1.02 seems extremely cheap, especially in the current market environment. Last 4Q revenue: $104M Market Cap: $120M I’m interested in anyone’s input. Maybe I’m missing any unforeseen risks associated with this company or the industry it’s operating in.   submitted by   /u/into-the-cosmos [link]   [comments]
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  30. Why I’d grab today’s cheap shares before it’s too late! (27/02/2021 - The Motley Fool UK)
    A strategy that aims to buy cheap shares and hold them for the long run has historically been relatively successful. While it does not guarantee profits, it can be a means of potentially using the stock market’s cycle to an investor’s advantage. Many stocks are currently trading at low prices due to ongoing economic uncertainty. So, there may be an opportunity to buy them prior to their recovery. An economic recovery cannot be assumed, of course. But history suggests that there is a good chance it will take place over the coming years. This could lift the valuations of today’s underpriced stocks. Cheap shares following the market crash While many cheap shares have bounced back following the 2020 stock market crash, others have failed to fully recover to their pre-crash levels. In some cases, this may be warranted because of their weak financial positions and challenging future outlooks. However, in other cases, they may have the strategies, financial means and market positions to mount a successful recovery over the long run. Clearly, identifying such companies can be challenging. However, doing so could be a prudent move that may enable an investor to reduce their overall risk. Cheap shares in companies with poor finances and weak market positions may be less likely to deliver successful turnarounds, or even survive, over the long run. Therefore, focusing on high-quality companies that are undervalued may be a more prudent approach. The prospect of economic growth As mentioned, an economic recovery that lifts the valuations of today’s cheap shares cannot be taken for granted. The future is always very uncertain, and the pandemic is an extremely rare event that may have as yet unknown effects on the world’s GDP prospects. However, previous economic declines have always been followed by growth. No recession has yet lasted in perpetuity. Therefore, taking a long-term view of cheap stocks could be a means of capitalising on a likely economic recovery. The 2020 market crash was almost impossible to predict. And trying to forecast when any economic recovery will take hold is a very difficult task. Therefore, buying shares while they still trade at cheap prices could be a sound move. Minimising risks When investing in cheap shares, or any type of stock, it is impossible to reduce risks to zero. There is always the potential for losses over any time period from any holding. After all, the future is a known unknown that cannot be predicted accurately on a consistent basis. However, it may be possible to reduce risk through actions such as focusing on stronger businesses and building a portfolio made up of a broad range of businesses, industries and geographies. Together, they may offer a lower level of risk versus a concentrated portfolio, and may also deliver higher returns in a potential long-term economic recovery. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading Why I’d follow Warren Buffett and hold some cash after the 2020 stock market crash A share I’d pick after reading Warren Buffett letters I’d buy these FTSE 100 stocks to beat inflation UK shares: 1 FTSE 250 stock to watch in 2021 The Tullow Oil share price vs the PMO share price: which stock should I buy? Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Why I’d grab today’s cheap shares before it’s too late! appeared first on The Motley Fool UK.
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  31. Why today’s cheap shares could prove great value during the new bull market (28/02/2021 - The Motley Fool UK)
    The new bull market has thrust many shares to record highs. However, it’s still possible to buy cheap shares due to an uncertain outlook for the economy in the short run. Buying stocks that trade at cheap prices has historically been a sound means of capitalising on stock market cycles. Therefore, building a portfolio of high-quality businesses while they trade at low prices could be a means of generating high returns. It may even double an initial investment at a relatively fast pace over the coming years. Buying cheap shares with capital growth potential One of the major reasons to buy cheap shares is their capacity to deliver high returns. Buying any asset at a low price is likely to be a better idea than purchasing it at a higher price. There’s more scope for capital growth, which equates to greater returns for an investor. Even though the new bull market has pushed many stocks to new highs, some sectors and companies trade at cheap prices. In many cases, they’re businesses that face challenging short-term prospects that could mean their financial performances disappoint. However, the world economy has always recovered from periods of low growth to deliver an improving performance. So the long-term prospects for many industries may be more positive than market sentiment suggests. Focusing on quality companies at low prices Of course, some cheap shares may be priced at low levels for good reason. For example, they may have weak balance sheets or lack an economic moat that means they fail to deliver strong profit growth in the long run. As such, it’s imperative to focus on the quality of any company before buying it. This means analysing its industry position, strategy, and financial position through assessing its latest investor updates and annual reports. Otherwise, it’s possible to end up with a portfolio filled with unattractive companies that may not be able to recover even in a long-term bull market. This could mean high risks, as well as low returns. Doubling an investment in undervalued shares Investing in cheap shares could be a means of generating higher returns than the wider stock market over the long run. It allows an investor to capitalise on the new bull market via companies for whom investors may currently have a negative standpoint that may not be merited in the coming years. Even matching the returns of the stock market could lead to 100%+ returns in the coming years. For example, indices such as the FTSE 100 and S&P 500 have delivered annualised total returns of 8-10% in recent decades. This means an investment that matches their performance could double within 7-9 years. However, an investor may be able to reduce this timeframe by purchasing undervalued companies now. They could be among the top performers in the new bull market. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading What is coinbase? The Cineworld share price has soared 300%! Should I buy now? 5 UK shares I’d buy to hold until 2025 Why I’d ignore the Lloyds share price and buy this UK share from the FTSE 100 Why I’d listen to Warren Buffett and prepare for a 2021 market crash Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Why today’s cheap shares could prove great value during the new bull market appeared first on The Motley Fool UK.
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  32. Why I’d buy dirt-cheap shares now and aim to hold them for a decade (01/03/2021 - The Motley Fool UK)
    A strategy of buying dirt-cheap shares and holding them for the long run has been relatively successful in the past. After all, it allows an investor to take advantage of the market cycle through buying undervalued shares in uncertain periods and holding them through a long-term recovery. Of course, such a scenario is by no means guaranteed. Some cheap stocks may fail to bounce back from their present woes. However, a likely economic recovery and low share prices for some high-quality businesses suggest that now could be a sound moment to buy a diverse range of undervalued stocks. High-quality companies with dirt-cheap shares Some dirt-cheap shares deserve their low prices at the present time. For example, they may have strategies that cannot be easily adapted to a rapidly-changing world economy. Or, they could have weak financial positions that don’t allow them to invest where necessary to become more competitive. However, in other cases, today’s cheap stocks could offer good value for money. Certainly, some companies face challenging futures caused by economic woes. But they may have access to large amounts of liquidity to strengthen their financial prospects. Equally, they could have a long track record of recovering from similar scenarios. Therefore, their valuations may not fully reflect their capacity to deliver improving financial performances in the coming years. A track record of recovery Predicting how dirt-cheap shares will perform in future is extremely challenging. After all, the future is always a known unknown. However, the past performance of the economy suggests that improving operating conditions are likely to be ahead. After all, no economic downturn has ever lasted in perpetuity. This suggests that many of today’s cheap stocks could enjoy higher demand for their products and services in future. Moreover, the scale of monetary policy stimulus announced during the coronavirus pandemic indicates that a brighter economic outlook could be ahead. As vaccine rollouts continue and lockdowns fade, consumer spending and economic growth could react positively. This may mean many of today’s dirt-cheap shares may benefit from a return to normality over the coming months and years. Buying undervalued shares Clearly, not all dirt-cheap shares will recover from their low price levels. Therefore, it’s important to be selective about the companies that are added to a portfolio. This can mean avoiding those businesses that have less financial stability. Or those that operate in industries that may become increasingly obsolete in the coming years. While a stock market rally may have taken place, not all companies have surged in price over recent months. Through buying cheaper businesses and holding them for the long run, it may be possible to enjoy greater scope for capital returns. Certainly as a likely economic recovery replaces recent difficulties to provide improved operating conditions. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading 3 steps I’d take to find top dividend shares to buy in March and beyond 3 mistakes passive income investors can make when investing in dividend stocks A FTSE 250 share I’d pick to buy and hold Ocado was the worst-performing FTSE 100 share in February. Here’s why How I’d build a portfolio by investing in top shares now Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Why I’d buy dirt-cheap shares now and aim to hold them for a decade appeared first on The Motley Fool UK.
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  33. Why I’d buy dirt-cheap shares now to capitalise on a stock market recovery (17/02/2021 - The Motley Fool UK)
    Dirt-cheap shares could be among the biggest beneficiaries of a long-term stock market recovery. Their prices could currently include wide margins of safety that provide significant scope for capital growth in a rising stock market. A strategy of buying such companies has generally been very successful in the past. As such, with many cheap stocks including companies that have dominant market positions and sound finances, now could be the right time to capitalise on their low prices. High potential returns from dirt-cheap shares Buying any asset at a lower price is usually a better idea than buying at a higher price. It means there’s greater potential to generate capital returns, since investors may not have priced in its long-term growth prospects. This logic has generally been profitable when applied to dirt-cheap shares. After all, they provide scope to outperform the wider stock market during a recovery. For example, previous crises such as the dot com bubble and the global financial crisis have prompted some companies to experience severe declines in their share prices. Although in some cases they’ve lasted for many months, or even years, a stock market recovery has always taken hold. This has often meant that those investors who buy undervalued stocks have benefitted the most from a subsequent stock market rally. A focus on quality companies At the present time, many dirt-cheap shares face tough operating conditions. This may mean they experience a decline in sales or profitability in the current year. However, such conditions are likely to be only temporary in nature. Often, they’re being caused by disruption to specific industries as lockdown measures have been used to prevent the spread of coronavirus. As they’re gradually lifted, improving sales and profit performance could be ahead. Moreover, many cheap stocks are high-quality businesses that are likely to survive a period of disruption to their operations. For example, they may have low debt levels. They may also have sound strategies to adapt to a changing operating environment, as well as a track record of defensive characteristics in periods of weak economic performance. Such companies could be grossly undervalued. That’s because investors may be overly focused on their short-term prospects instead of their long-term profit capabilities. Reducing risks in a portfolio Clearly, not all dirt-cheap shares will recover from the current economic challenges facing many sectors. Therefore, it’s important to focus on fundamentals such as debt levels and other financial metrics to ascertain their financial strength. Similarly, assessing their market position versus rivals, as well as industry growth trends, may help an investor to identify the best cheap stocks to buy. Over time, they could be strong performers in a stock market recovery. They may be able to offer higher returns than are possible from the wider stock market in the coming years. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading Should I wait until the next stock market crash to buy cheap UK shares? FTSE 100 stocks: a UK share I think will exit Covid-19 in terrific shape UK investing: I think these are the best shares to buy now The Rolls-Royce share price is under £1: should I buy today? 3 UK shares I’d buy right now in my ISA Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Why I’d buy dirt-cheap shares now to capitalise on a stock market recovery appeared first on The Motley Fool UK.
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  34. 2 dirt cheap shares I’d buy for the coming decade (30/04/2021 - The Motley Fool UK)
    With some blue chip shares performing well lately I’ve been looking hard in the stock market in an attempt to find bargains. Here’s a list of dirt cheap shares I am now holding in my own portfolio. By ‘dirt cheap’, I mean they trade significantly lower than I expect them to in future. Only time will tell if that expectation is justified. Why I would consider dirt cheap shares A lot of seemingly dirt cheap shares are priced low for a reason. There are still potential bargains to be found, though. Some dirt cheap shares are priced low due to short-term problems. If I expect them to recover over a period of years, I’d still consider buying them. There is always a risk that shares lose value, of course, which is why I diversify across multiple stocks. Defence contractor doldrums The doldrums isn’t a good place for a share price to be. It’s a mariners’ term originally. So it’s ironic that naval contractor Babcock (LSE: BAB) finds its share price in the doldrums. It’s down 30% over the past year. The Babcock share price is just a third of the price it was five years ago. Why have the Babcock shares lost momentum? Risks include a revision of the balance sheet which has cut profit forecasts. There is a risk of further contract writedowns in future, so profits could fall yet further. The City is eyeing the share valuation beadily. But I am holding these dirt cheap shares and waiting for recovery. The company has a strong order book. It can benefit from long relationships with key customers such as the Ministry of Defence. Facilities such as dockyards are hard for competitors to replicate. Underlying operating profits for last year, before impact from the accounting review, are expected to be £307m. That’s over a fifth of the current market cap of £1.48bn. Neglected property portfolio Car dealership Lookers (LSE: LOOK) is up 170% over the past year. Why do I still think these are dirt cheap shares? Currently, the stock market values the company at £265m. The company had property with a net book value of £314m last summer. Even allowing for net debt of around £45m at year end, that suggests the market cap is roughly equivalent to the company’s property assets alone. But Lookers is one of the leading car dealerships across the UK. It sold over 44,000 vehicles in the first quarter of this year. Its expectation for full year pre-tax profit in 2021 is materially ahead of the analyst consensus. I don’t think the share price reflects that right now. Holding dirt cheap shares for a decade Both of these dirt cheap shares have had a very challenging couple of years. Babcock’s contract valuation reassessment shook confidence in the company’s accounting practices. Lookers saw its shares suspended for months while forensic accountants undertook a fraud investigation. Both have suffered reputational damage, which could be a risk when it comes to attracting or retaining customers in future. If I hold for many years, the companies should have time to demonstrate their capability. I hope that will be reflected in their share prices no longer being dirt cheap. 5 Stocks For Trying To Build Wealth After 50 Markets around the world are reeling from the coronavirus pandemic… And with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains. But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be daunting prospect during such unprecedented times. Fortunately, The Motley Fool is here to help: our UK Chief Investment Officer and his analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global lock-down… You see, here at The Motley Fool we don’t believe “over-trading” is the right path to financial freedom in retirement; instead, we advocate buying and holding (for AT LEAST three to five years) 15 or more quality companies, with shareholder-focused management teams at the helm. That’s why we’re sharing the names of all five of these companies in a special investing report that you can download today for FREE. If you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio, and that you can consider building a position in all five right away. Click here to claim your free copy of this special investing report now! More reading Ted Baker and Babcock shares are soaring. Should I buy now? 3 UK shares I think could still grow 25% this year The Babcock share price is up 32% today! Here’s why I’m staying well away FTSE 250 stocks: Babcock International’s share price soars 33%! Here’s why Why is the Babcock share price surging today? christopherruane owns shares of Babcock International Group and Lookers. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post 2 dirt cheap shares I’d buy for the coming decade appeared first on The Motley Fool UK.
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  35. Clearing Houses (11/06/2021 - Reddit Stocks)
    Am I wrong in speculating that Clearing Houses could aid in manipulating stocks? Example: An investor has used his margin buying power to accumulate shares of Acme Co. The current maintenance requirement is 50%. Now a large firm, fund, investor, etc wants to buy cheap shares of Acme- the stock is ready to take off on pending news. They tell the clearing house to raise the maintenance requirement to 100%. Now everyone using that clearing house who has a large enough chunk of Acme while at or near max margins, may get a margin call, forcing the sale of hopefully, Acme at whatever the current rate is, which may drop as others liquidate Acme to make their margin call. Now they can buy up cheaper shares. Paranoia or possibility? How does one know if the maintenance requirement of a stock is a fair one?   submitted by   /u/vweavers [link]   [comments]
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  36. $ET DD (earnings call 6/17) (16/06/2021 - Reddit Stocks)
    https://www.google.com/amp/s/seekingalpha.com/amp/article/4433856-5-reasons-why-energy-transfer-will-likely-double-from-here This is really big. A very solid and legit company with dirt cheap calls and undervalued shares. Crushed earnings in Q1 and expected to again Q2 (call on 6/17). Now is the time to get in and get rich   submitted by   /u/Mbags1106 [link]   [comments]
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  37. 3 cheap shares I’d buy now and aim to hold for a decade (10/03/2021 - The Motley Fool UK)
    Much has been written about the strategy of buying cheap shares and holding them for a long time. In the past, such an approach has been successful for many investors. And there’s a body of literature dedicated to value investing where a stock is deemed attractive if it looks cheap compared to valuation measures. Why I’m searching for cheap shares to buy now Benjamin Graham is often called the father of value investing and his books are a good read. For example, I’ve got a copy of The Intelligent Investor on my bookshelf. And that tome is well-known for having been a strong influence on the young Warren Buffett. But even buying stocks that look cheap when measured against their fundamentals is no guarantee of a successful investment outcome. Cheap shares can get cheaper and then stay there. Even value shares can lose me half my money if I allow them to. However, there seems to be an investor rotation going on in the markets. I reckon investors have been shifting their money from expensive growth stocks into cheaper value and recovery shares. And over time, the stock market has a habit of cycling between such trends. I think it’s a good time for value shares to have their time in the sun. So most of my investments focus on that theme right now. Of course, I could be wrong with my analysis and my value picks could go on to underperform. Nevertheless, I’m sticking to the strategy for the time being and one stock I like the look of is Morses Club. The company is a consumer finance business focused on the home collected credit market.  Attractive on the numbers With the share price near 66p, the forward-looking earnings multiple is a modest mid-single-digit number and there’s a chunky dividend yield above 6%. But the business has had its wobbles in the past and earnings have a patchy record. Good share performance is far from certain going forward and the somewhat murky outlook is probably why the stock looks cheap. I’m also keen on H&T, the pawnbroking business. With the shares near 301p, the valuation looks modest and there’s a decent shareholder dividend above 3%. But the valuation has looked modest for this company for as long as I can remember. Another risk is that City analysts expect a further decline in earnings in 2021 on top of the big falls last year because of Covid-19. Nevertheless, as a value proposition, those factors don’t put me off the stock. I like the blend of agriculture and engineering services offered by Carr. I see the stock as a potential steady investment operating in stable sectors. With the share price near 130p, the low double-digit valuation is undemanding and there’s a dividend yield knocking on the door of 4%. But the stock’s been trending lower for almost seven years. There’s a chance I could buy the stock and hold for a decade and still end up losing money. However, I’d embrace the risks and buy a few of the shares. I’d aim to hold shares like these three for at least a decade to give the value time to build and feed into the share price. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading Lloyds share price forecast: is 50p obtainable this year? What I think this US government agency’s predictions mean for the RDSB and BP share prices What is the ISA limit? NIO stock is selling off – but I’m buying more! Tullow Oil’s share price rises after FY results. This is what I’d do now Kevin Godbold has no position in any share mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post 3 cheap shares I’d buy now and aim to hold for a decade appeared first on The Motley Fool UK.
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  38. Got £750 to invest? Here are my 2 best cheap shares to buy now! (22/03/2021 - The Motley Fool UK)
    I have an odd personality quirk: I prefer not to buy and own things. For instance, I don’t own a house (but my wife does). Also, I’ve never owned a car (but I’ve driven company cars). Most of my treasured possessions are ancient. For example, I keep patching up my 25-year-old walking boots to keep them going. Thus, when I receive any sudden windfalls, I rarely have any immediate use for them. Generally, I give any spare money to my wife to spend or save, or I invest into cheap shares for a passive income. I’ll invest £750 into cheap shares Last weekend, I had a modest windfall when I won $1,000 (over £720) in an online poker game. I decided to round this to £750 to buy cheap shares. As a veteran value investor, I scanned the FTSE 100 index over the past year, looking for laggards. Here are two stocks I like today. Cheap shares #1: GlaxoSmithKline I’ve owned a stake in pharma giant GlaxoSmithKline (LSE: GSK) for almost three decades. As my largest personal shareholding, GSK has been a big disappointment of late. Over the past 12 months, GSK has been among the Footsie’s worst performers. In fact, it’s ranked #96 out of 101 FTSE 100 shares since 19 March 2020 (just before the market bottomed on 23 March). GSK is down almost a tenth (9.7%) over 12 months, versus a 30.2% gain for the index. Nevertheless, as a buyer of cheap shares, I welcome the chance to invest after price falls. At last year’s peak, the GSK share price hit a high of 1,857p on 24 January 2020. On Friday, shares changed hands for 1,299p. That’s a collapse of three-tenths (30%) in 14 months. I know there are worries about GSK’s forthcoming separation into two separate listed companies. And GSK boss Dame Emma Walmsley has hinted that the group will cut its long-established cash dividend of 80p a share. Even so, I think anxiety about GSK’s future might be overdone. Right now, GSK stock trades on a price-to-earnings ratio of 11.4 and an earnings yield of 8.8%. The dividend yield of 6.2% a year is almost double that of the FTSE 100. With GSK looking undervalued on these fundamentals, I’ll keep buying these cheap shares for a juicy passive income. A great business at a 20% discount For the record, 92 of the 101 shares currently in the FTSE 100 index have gained since 19 March 2020. Still, it genuinely surprises me that Unilever (LSE: ULVR) stock is among the stragglers. Shares in the Anglo-Dutch Goliath are down 2.4% over 12 months. At its peak in 2020, the Unilever share price was riding high at 4,944p on 14 October. Today, the shares trade at 3,974p — down 970p in five months. That’s a slide of almost a fifth (19.6%), which indicates to me that Unilever stock may have been dumped in the ‘cheap shares’ bargain bin. Globally, 2.5bn people use Unilever products each day. And because Unilever is a powerhouse in FMCG (fast-moving consumer goods), its stock generally commands a premium rating. But, like Warren Buffett, I don’t mind paying a fair price to buy into a great business. On Friday, ULVR stock traded on a price-to-earnings ratio of 22 and an earnings yield of 4.5%. The current dividend yield of 3.7% is ahead of the wider FTSE 100. Hence, as a value investor, I’d be happy to buy these discounted shares today! FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading 2 UK shares I’d consider buying and holding my whole life Does this FTSE 100 company have potential for big share price growth and income? The GSK share price has been rising. Here’s what I’m doing now Scottish Mortgage Investment Trust: 2 peers paying bigger dividends The Unilever share price slumps, but I’m still buying the stock Cliffdarcy owns shares of GlaxoSmithKline. The Motley Fool UK has recommended GlaxoSmithKline and Unilever. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Got £750 to invest? Here are my 2 best cheap shares to buy now! appeared first on The Motley Fool UK.
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  39. The Ratings Game: Salesforce stock bucks software selloff after upgrade: ‘Leading franchises do not stay cheap for long’ (19/05/2021 - Market Watch)
    Salesforce.com Inc. shares have underperformed fellow software stocks since the company's plans to acquire Slack were first reported late last year, but one analyst thinks a turnaround is in store.
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  40. Cheap stocks to set and forget (04/05/2021 - Reddit Stocks)
    I was looking to delete my app, just let it be after several losses Was looking for a couple cheap ( stock price) high dividend stocks to buy and check only when I can add more money to my position ( small portfolio that is now smaller after several losses) and was looking for recommendations I was thinking on going all in. With LUMM, the company itself seems very stable, and barely moves, always low volume and a high dividend of around 7% Any thoughts are welcome   submitted by   /u/Simpino [link]   [comments]
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  41. Best way to invest $1000 as a newbie in the stock market? (14/05/2021 - Reddit Stock Market)
    Hello, so I currently have 5k lying around and figured I'd want to invest it. I've been thinking about investing for a long while and have been really nervous about it until recently. I've been investing 500 ish in robinhood (Since I downloaded that before everything happened), and only recently been investing my money. So far I have 1.04 shares of ORCL, 2.51 shares of RIOT, 0.152 shares of AMC, and I just placed an order for VOO ETF. Am I on the right track? I picked ORCL since at the time it was cheap enough for me to buy and that company had a good track record. RIOT seemingly has been giving me great returns already and I plan to sell it once I get a dollar or two in profit, and I have been wanting to mitigate my risks for the long term and have heard that ETF's are very good for that, so I got VOO. So now with nearly 520 invested, I plan on investing another roughly 500 to get 1k invested and just leave it at that as I'm a newbie. Thanks for the help and advice. I've watched a few videos already but so far all I've heard is "Buy companies like visa, etfs, and just wait"?   submitted by   /u/lolmaster1337420 [link]   [comments]
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  42. £1,500 to invest? Here’s how I’d turn it into £10k buying cheap shares! (05/03/2021 - The Motley Fool UK)
    To begin, I confess that I am terrible with paperwork. In fact, I practically have a phobia of admin. Thus, my highly organised wife takes care of that side of things. Bearing that in mind, I got a surprise missive through the post last week. An envelope arrived containing details of a small personal pension that I took out in the early 1990s — 30 years ago. This was the first yearly statement I’d had from this pension provider for many years. I guess they must have finally tracked me down. But I was so disappointed with what I saw in this statement, that I’m going to fire this pension firm. And I’m going to move my money into a pension that allows me to invest in cheap UK shares. Turning £250 into £1,500 over 30 years Though I had long forgotten about this pension, I do recall how much I initially invested. It was a one-off lump sum of around £250 in 1991, early in my career. How much do you think that would be worth today? The answer is a smidgen over £1,500. In other words, it’s now worth six times what I put in. While that may sound like a decent return, don’t forget that it works out at a 500% return over 30 years. That equates to a compounded return of 6.15% a year for three decades. Alas, this money wasn’t invested in cheap shares. Instead, it was invested in two actively managed funds. Sadly, the fees charged by these funds gobbled up much of my gains. Back in 1991, I split this pension contribution into two halves. Half went into an international ‘balanced managed’ fund. This has performed very poorly in terms of returns. Over 30 years, it has turned £125 (half my initial contribution) into £500. That’s a compound return of a mere 4.73% a year. This is a truly awful performance and places this fund among the UK’s worst, I’d wager. I suspect I could have made a multiple of this sum investing this into cheap shares. The remaining £125 went into a UK-focused ‘balanced managed’ fund. This easily outperformed the international fund, turning £125 into £1,000 over three decades (twice as much). That equates to a compound return of 7.18% a year. That’s better than the international fund, but I may have done better by picking my own cheap shares. Turning £1,500 into £10k by buying cheap shares Alas, it turned out that these two ‘balanced managed’ funds were actually unbalanced and mismanaged. That’s why I’ve decided to cut ties with this poor pension provider to control this money myself. I’m going to leave these failing funds by transferring my money into my SIPP (Self-Invested Personal Pension). Once this transfer is complete, I will invest it all in one of the world’s most attractive markets for cheap shares: the UK’s FTSE 100. Mortality statistics suggest that I might not live another 30 years. Hence, my goal will be turning my £1,500 into £10k over the next 20 years. To do this takes a compound yearly return just short of 10% (9.95% a year, to be exact). I’m optimistic that, by buying into quality companies with growing revenues, profits, and dividends, I can achieve this 10%-a-year return. I’ll start by buying a few cheap shares that pay the UK’s highest dividends. Then I’ll keep reinvesting this passive income into yet more shares and we’ll see how things go from there! FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading Can I buy shares in Deliveroo? This Covid-related AIM stock is up 700% in 1 year. Should I buy it now? What should I do if I owe council tax? Can I make £30,000 a year purely in passive income from dividend stocks? The Saga share price: here’s what I’m doing now Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services, such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool, we believe that considering a diverse range of insights makes us better investors. The post £1,500 to invest? Here’s how I’d turn it into £10k buying cheap shares! appeared first on The Motley Fool UK.
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  43. How I’d invest £5k in cheap UK dividend shares (13/06/2021 - The Motley Fool UK)
    I believe investing in cheap UK dividend shares is one of the best ways to boost my income. At the moment, some companies on the market offer dividend yields as high as 8%. This looks incredibly attractive, compared to most savings accounts. However, dividend shares should never be used as a substitute for savings accounts. Dividend distributions are paid out of company profits. Therefore, they’re never guaranteed. If a firm’s profits suddenly take a turn for the worst, management may have no choice but to cut the firm’s dividend. Indeed, the market was subject to widespread dividend cuts last year when corporate profits plunged during the pandemic.  As such, this strategy may not be suitable for all investors. Still, I’m comfortable with the level of risk involved in buying cheap UK dividend shares. If I had a lump sum of £5,000 to invest today, I’d buy a basket of companies to achieve this aim.  A basket of stocks One of the best dividend shares on the market at the moment, in my opinion, is British American Tobacco (LSE: BATS). Ethical considerations aside, this company is extremely attractive as an income investment. The stock currently offers a dividend yield of around 8%. It also trades at a price-to-earnings (P/E) multiple of about 8. Compared to the market average of approximately 16, that looks cheap to me.  What’s more, the company recently increased its sales forecast for the year. British American now expects to generate revenue growth of “above 5%” for the year. Previous forecasts called for growth in the region of 3-5%.  The company is benefiting from higher sales of its so-called reduced-risk tobacco products, which consumers are purchasing in increasing numbers.  With sales set to expand by a mid-single-digit percentage this year, I think the outlook for the company and its dividend is exciting. That’s why I’d include it in my portfolio of cheap UK dividend shares.  Having said all of the above, one significant risk hanging over the stock is the company’s debt. Management expects net debt to reduce to three times adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) by the end of the current financial year. That’s a bit high for my liking. I tend to avoid shares with a net debt to EBITDA ratio of more than two.  Cheap UK dividend shares The other company I’d buy for my basket of income stocks is Aviva (LSE: AV). At the time of writing, the stock trades at a P/E of 7.7. It also offers a dividend yield of 5.6%.  I’m encouraged by the insurance group’s recent efforts to refocus the business. It’s sold off overseas divisions and is focusing on building its operations here in the UK. While it’s still early days, I think this could lead to a renewed growth spurt at the corporation over the next few years. It’s this potential, coupled with the stock’s dividend yield, that makes me want to buy Aviva for my portfolio right now. Of course, if the turnaround programme doesn’t yield the desired results, the company’s growth could collapse. In this scenario, Aviva’s profits may slump, and its dividend could come under pressure.  The post How I’d invest £5k in cheap UK dividend shares appeared first on The Motley Fool UK. The Motley Fool UK's Top Income Stock… We think that when a company’s CEO owns 12.1% of its stock, that’s usually a very good sign. But with this opportunity it could get even better. Still only 55 years old, he sees the chance for a new “Uber-style” technology. And this is not a tiny tech startup full of empty promises. This extraordinary company is already one of the largest in its industry. Last year, revenues hit a whopping £1.132 billion. The board recently announced a 10% dividend hike. And it has been a superb Motley Fool income pick for 9 years running! But even so, we believe there could still be huge upside ahead. Clearly, this company’s founder and CEO agrees. Learn how you can grab this ‘Top Income Stock’ Report now More reading My 3 top FTSE 100 shares for extra dividend income! What am I doing with my Aviva shares now? How I’d invest £500 in UK shares today This FTSE 100 stock has a 6.5% dividend yield. Should I buy? Should I buy British American Tobacco (BATS) shares? Rupert Hargreaves owns shares in British American Tobacco. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  44. Why I’d buy Lloyds and other cheap UK shares today (19/02/2021 - The Motley Fool UK)
    Despite the recent stock market rally, it’s currently possible to buy cheap UK shares such as Lloyds. The FTSE 100 bank is trading 35% down on its price from a year ago. This could indicate it offers a wide margin of safety. And potentially has scope for a long-term recovery. Building a portfolio of such shares could prove to be a sound move. There are a wide range of bullish forecasts for the UK economy. Meanwhile, the stock market itself has always rallied to new record highs following every previous crash. Through buying today’s undervalued shares, it may be possible for an investor to use the market cycle to their advantage in the coming years. Cheap UK shares with recovery potential A key reason why cheap UK shares such as Lloyds exist is the challenging outlook for the UK economy. The bank currently has a price-to-earnings (P/E) ratio of around 10 at the present time. This suggests investors may be pricing in further difficulties in its end markets that could have a negative impact on its performance. While that may be the case, the long-term potential for many undervalued UK stocks could be more positive. The scale of fiscal and monetary policy stimulus previously announced in response to coronavirus could deliver an improving economic outlook. Meanwhile, rising consumer saving during lockdown may be unleashed as a return to normality becomes clearer. This may lead to improving operating conditions for companies such as Lloyds that means they can command higher share price valuations. Risk management in an uncertain period Clearly, just buying a small number of cheap UK shares such as Lloyds would lead to a concentrated portfolio. This is where an investor relies on a small number of holdings for their returns. This could mean higher risks, as well as lower returns should one or more holdings experience poor performance and low profitability. As such, it’s prudent to buy a wide range of companies at the present time instead of holding a small number. Doing so doesn’t have to cost vast amounts of money, since regular sharedealing services can be used on a one-off basis for a relatively low fee. Furthermore, with indexes such as the FTSE 100 and FTSE 250 trading lower than they did a year ago, there may now be a wide range of opportunities to buy cheap UK shares. Taking a long-term view Of course, it could take a very long time for cheap UK shares to produce recoveries. In fact, some companies may never recover from their present challenges. However, as is the case with Lloyds, when such businesses have low valuations and appear to have a solid market position that could be re-energised by a recovering economy, they may offer investment appeal over the long run. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading No savings at 50? I’d use Warren Buffett’s methods to invest HSBC share price: the bank could have a big event coming up British American Tobacco looks to expand into cannabis. Is BATS a good investment? 3 reasons for organising a will The Lloyds share price is climbing in February. Should I top up my holding? Peter Stephens owns shares of Lloyds Banking Group. The Motley Fool UK has recommended Lloyds Banking Group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Why I’d buy Lloyds and other cheap UK shares today appeared first on The Motley Fool UK.
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  45. Thoughts about Huami/ZEPP? $ZEPP (13/03/2021 - Reddit Stocks)
    I was wondering if people on this forum might share their thoughts on $ZEPP (former Huami). Seems like a very cheap buy at the moment considering their current PE compared to competitors and huge potential in health care tech. Why are they not more widely recognized? Do I miss something? I do not have any shares (yet).   submitted by   /u/Podroki [link]   [comments]
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  46. Why I’d start investing £250 a month in cheap UK shares in an ISA today (15/02/2021 - The Motley Fool UK)
    Even after the recent stock market rally, it is still possible to find cheap UK shares to buy today. Investing money in them regularly through a tax-efficient account such as a Stocks and Shares ISA could produce high returns over the long run. Of course, there is never a guarantee of profit from holding any stock. The 2020 stock market crash showed that a bull market can quickly disappear. However, over the long run, the track record of UK stocks shows that they could be a sound way to obtain a large lump sum. Buying cheap UK shares today Buying cheap UK shares right now could provide greater scope to generate high returns in the long run. The track record of the stock market shows that the valuations of its members have often reverted to their long-term averages over time. As such, today’s undervalued shares could be among those companies that benefit the most from a likely long-term economic recovery. Certainly, some cheap stocks may not be worth more than their current prices. For example, they could have poor return characteristics or weak finances. Therefore, it is important to not only analyse businesses before buying them, but also to diversify across a broad spectrum of companies, sectors and geographies. This may lower overall risks and improve returns. Investing money regularly in undervalued stocks Buying cheap UK shares on a regular basis can lead to high returns over the long run. Even if an investor matches the long-term stock market average total returns of around 8% per year, they could build a large portfolio from a realistic monthly investment. For example, buying £250 worth of shares per months at an 8% annual total return could produce a portfolio worth around £240,000 over 25 years. Clearly, there is never any guarantee that this return will be produced. However, through buying undervalued shares in high-quality companies, it may be possible to obtain attractive returns over the long run. Using a Stocks and Shares ISA to buy stocks A Stocks and Shares ISA could be a simple and worthwhile means of investing money in cheap UK shares. Costs are generally low compared to other retirement accounts, while tax advantages mean that net returns may be significantly higher than using a standard share-dealing account over the long term. As such, with many UK shares trading at low prices following the 2020 stock market crash, now could be an opportune moment to start buying them regularly. This may not produce a positive return over any time period. However, the past performance of the stock market and the potential for today’s undervalued stocks to rise in price could mean that a portfolio grows at a relatively fast pace in a long-term stock market recovery. A Top Share with Enormous Growth Potential Savvy investors like you won’t want to miss out on this timely opportunity… Here’s your chance to discover exactly what has got our Motley Fool UK analyst all fired up about this ‘pure-play’ online business (yes, despite the pandemic!). Not only does this company enjoy a dominant market-leading position… But its capital-light, highly scalable business model has previously helped it deliver consistently high sales, astounding near-70% margins, and rising shareholder returns … in fact, in 2019 it returned a whopping £150m+ to shareholders in dividends and buybacks! And here’s the really exciting part… While COVID-19 may have thrown the company a curveball, management have acted swiftly to ensure this business is as well placed as it can be to ride out the current period of uncertainty… in fact, our analyst believes it should come roaring back to life, just as soon as normal economic activity resumes. That’s why we think now could be the perfect time for you to start building your own stake in this exceptional business – especially given the shares look to be trading on a fairly undemanding valuation for the year to March 2021. Click here to claim your copy of this special report now — and we’ll tell you the name of this Top Growth Share… free of charge! More reading Synairgen shares: 5 reasons why I’d buy 3 reasons why the Ocado share price fell 7% last week How I’d identify great shares to buy in a stock market recovery The FTSE 100 has surged 30% since the 2020 stock market crash! Here’s what I’d do now Greencoat UK Wind shares: should I buy now? Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Why I’d start investing £250 a month in cheap UK shares in an ISA today appeared first on The Motley Fool UK.
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  47. Why is JKS selling so cheap? (22/03/2021 - Reddit Stocks)
    Correct me if I'm wrong here, but JKS is selling way to cheap by current standards. For background, they're one of the leading provider for solar panels, and industry that will only get bigger over the next 10 years, has a price to earnings ratio of about 17, very low compared with the likes of Apple, and a price to book ratio of 1.2. Despite all this, their market cap sits at a measly 2 billion dollars, despite pulling in $8.7 Billion in revenue. They seem severly undervalued, right?   submitted by   /u/RowanHarley [link]   [comments]
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  48. 3 of the best cheap UK stocks to buy today (22/05/2021 - The Motley Fool UK)
    I like to add cheap UK stocks to my portfolio. If I can avoid value traps – shares which keep on going down in value – then it can be a good way to find shares that are undervalued. Cheap stocks can have a lot of upside if bought at the right time, for a sensible price. As legendary investor Warren Buffett says: “Price is what you pay. Value is what you get”. A FTSE 100 warehouse group The FTSE 100-listed warehousing company Segro (LSE: SGRO) is my first cheap UK stock. The shares trade on a price-to-earnings multiple of around eight. This suggests the shares could be undervalued. The shares are cheap because of strong earnings growth relative to the share price, rather than poor performance. That’s why I think there could be a lot of upside. The increase in e-commerce and the potential for consumers’ behaviour to have permanently changed because of the pandemic mean demand for warehouses for retailers will keep on increasing. This should keep prices up, which is good for Segro and other warehouse companies. Segro is a great operator. It has consistently performed well in recent years and kept adding to its rent collection. The risks seem limited to me but include rents potentially not being collected if the economy suffers again. Earnings per share growth may also slow against a very strong 2020, which may hit the share price. Poised for global recovery  Iron ore pellet producer Ferrexpo (LSE: FXPO) is a company well aligned to the reopening of the global economy. Demand for iron ore will pick up rapidly as the world recovers from the pandemic. Construction and other industries that use steel will push up demand for iron ore, which should in theory push up prices for Ferrexpo. Despite its share rising, the P/E is only around six, which makes the shares seem very cheap. I think that valuation is attractive, but there are risks. As with any miner, there is a risk that prices fall, which would hit the company’s profits. The company has in the past had governance issues and its mines are in Ukraine, putting it at risk potentially from any Russian geopolitical actions in that country. There are still skirmishes in the east of the country. I think this explains why the shares are cheap. Cheap UK stock The outsourcer Serco (LSE: SRP) might not be everyone’s cup of tea after past controversies over charging taxpayers for tagging criminals who in some cases were no longer alive. Nonetheless, today the company seems to have turned a corner under the excellent leadership of Rupert Soames. Serco is benefitting from increased defence spending. Acquisitions are also helping fuel growth and if well integrated could help boost the share price, in my opinion. The downside with outsourcers are that margins are often low, and contract discipline lessens in the good times meaning they can be quite cyclical investments. With a P/E of 13, the shares seem to be quite cheap. On top of that, the dividend yield is very low, indicating that there could be growth in the shareholder payout in future. That could add to the total return the company could provide to my portfolio, if I added it. Segro, Ferrexpo, and Serco then are cheap UK stocks I’d be interested in adding to my portfolio today.  5 Stocks For Trying To Build Wealth After 50 Markets around the world are reeling from the coronavirus pandemic… And with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains. But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be daunting prospect during such unprecedented times. Fortunately, The Motley Fool is here to help: our UK Chief Investment Officer and his analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global lock-down… You see, here at The Motley Fool we don’t believe “over-trading” is the right path to financial freedom in retirement; instead, we advocate buying and holding (for AT LEAST three to five years) 15 or more quality companies, with shareholder-focused management teams at the helm. That’s why we’re sharing the names of all five of these companies in a special investing report that you can download today for FREE. If you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio, and that you can consider building a position in all five right away. Click here to claim your free copy of this special investing report now! More reading UK shares to buy now: my top 2 FTSE 100 stocks 3 top growth stocks for May Andy Ross owns no share mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post 3 of the best cheap UK stocks to buy today appeared first on The Motley Fool UK.
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  49. Stock market recovery: is it too late to make a passive income from cheap shares? (12/02/2021 - The Motley Fool UK)
    The recent stock market recovery could make it more difficult to make a large passive income from cheap shares. After all, higher stock prices mean lower yields. Especially when a limited number of companies have increased their dividend payouts in today’s challenging economic circumstances. However, some sectors have underperformed the wider index. Meanwhile, others continue to trade at low levels compared to their historic averages. As such, it’s still possible to identify high-quality cheap shares that can produce a generous, and growing, passive income. Buying cheap shares after the stock market recovery Despite the recent stock market recovery, the FTSE 100 continues to trade below its all-time high. In fact, it’s around 15% down on its record high. This suggests a number of companies could still be classed as cheap UK shares. Certainly since they may have failed to fully bounce back from the 2020 stock market crash. Furthermore, some sectors have significantly underperformed the wider stock market. Examples include, but are not limited to, banking, energy, travel & leisure. You can also add some retailers who’ve negatively impacted by store closures during lockdown. Their share prices may fully reflect the uncertainty faced over the short run. As such, they could offer good value for money. As well as a generous passive income over the long run. Making a passive income in an uncertain economic period Cheap shares continue to offer high yields after the stock market recovery in some cases. So making a passive income is more than just focusing on today’s shareholder payouts. Consideration must be made to the affordability of dividends over the long run. That’s because some companies may struggle to deliver rising profitability for a prolonged period of time following the current economic crisis. As such, checking the quality of cheap shares could be a sound move. For example, assessing their balance sheet strength, the adaptability of their business models and their competitive advantages could be a sound means of analysing the reliability of their dividend payouts. Cheap shares that lack such characteristics may be worth avoiding. Even if they offer high yields and large discounts compared to their sector peers. Building a dividend portfolio As well as analysing cheap shares to check the affordability of their passive incomes, building a diverse portfolio of companies could be a shrewd move at the present time. After all, the recent stock market recovery is not guaranteed to continue. It could turn into a stock market crash at any time. The stock market could experience further ups-and-downs that negatively impact on an investor’s portfolio. Although diversification doesn’t reduce risk to zero, it can lower an investor’s dependency on a small number of shares for their passive income. This may result in a more reliable and resilient income stream over the long run. A Top Share with Enormous Growth Potential Savvy investors like you won’t want to miss out on this timely opportunity… Here’s your chance to discover exactly what has got our Motley Fool UK analyst all fired up about this ‘pure-play’ online business (yes, despite the pandemic!). Not only does this company enjoy a dominant market-leading position… But its capital-light, highly scalable business model has previously helped it deliver consistently high sales, astounding near-70% margins, and rising shareholder returns … in fact, in 2019 it returned a whopping £150m+ to shareholders in dividends and buybacks! And here’s the really exciting part… While COVID-19 may have thrown the company a curveball, management have acted swiftly to ensure this business is as well placed as it can be to ride out the current period of uncertainty… in fact, our analyst believes it should come roaring back to life, just as soon as normal economic activity resumes. That’s why we think now could be the perfect time for you to start building your own stake in this exceptional business – especially given the shares look to be trading on a fairly undemanding valuation for the year to March 2021. Click here to claim your copy of this special report now — and we’ll tell you the name of this Top Growth Share… free of charge! More reading I don’t care if experts are warning of a stock market crash, I’m buying cheap UK shares today 1 high-growth UK tech stock I’m watching in 2021 I was right about the GameStop share price. Here’s what I’m doing now 2 FTSE 100 shares I’d add to my Stocks and Shares ISA in February Should I buy Hipgnosis stock or shares in Round Hill Music? Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Stock market recovery: is it too late to make a passive income from cheap shares? appeared first on The Motley Fool UK.
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