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16 June 2021
10:49 hour

Shares to buy: a FTSE 100 stock for my ISA

The Motley Fool UK

10/06/2021 - 16:11

I think this is a FTSE 100 share to buy right now in my Stocks and Shares ISA and hold for the long term for potential compounding capital and income gains. The post Shares to buy: a FTSE 100 stock for my ISA appeared first on The Motley Fool UK.


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  1. London Markets: FTSE 100 headed for best weekly return since January (09/04/2021 - Market Watch)
    The FTSE 100 has outperformed its European rivals this week, thanks to the pound. Among stocks, Babcock International shares slid, while PageGroup surged on.
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  2. Stock market rally: here’s why I’m buying FTSE 100 shares in an ISA (27/03/2021 - The Motley Fool UK)
    Last year’s dramatic stock market rally has fizzled out, but I still think now is a great time to buy FTSE 100 shares inside a tax-free ISA. The index is up by a third since falling below 5,000 in March last year, but has bags more recovery potential. At some point, I expect another leg of the stock market rally. The FTSE 100 has been in a holding position of around 6,700 for most of this year, but that won’t last forever. I think top shares should start growing strongly once we see a clear route out of the pandemic. It’s not guaranteed, of course and I don’t know when that rally will come. Nobody does. Predicting where the stock market will go from one month to the next is a mug’s game. However, history shows that in the longer run, the trajectory is upwards. I’m buying before the stock market rally There’s no question that the Millennium has been a disappointment. The FTSE 100 spiked at 6,930 on 31 December 1999, and trades just below that level today. Don’t let that fool you into thinking nobody has made money in that time, though. Even in the hugely unlikely event that investors bought every single stock they own on Millennium Eve, they will still have made a fat profit. If they’d reinvested all their dividends back into their portfolios for growth, they would have bought loads more stock at much cheaper valuations.  In practice, most people will have invested at much lower levels. For example, the FTSE 100 fell as low as 3,000 in March 2003, in the wake of the technology crash. That was a great buying opportunity. So was last year’s Covid crash, given the scale of the subsequent stock market rally. I buy FTSE 100 stocks for the long term I would still like to see the FTSE 100 power through 7,000, then 8,000, 9,000. Will that happen? Again, I don’t know. What I do know is that buying FTSE 100 shares is likely to make my money work much harder than if I stick to cash. I’m still 15 years away from retirement and over that time, I would hope the stock market would generate plenty of dividend income and capital growth, all of which would be tax-free inside an ISA. I like buying shares in a stock market crash as then I can buy my favourite companies at bargain prices. I don’t only buy in a crash though. I think the best time to invest in shares is whenever I money to spare. Then I simply leave it there, and wait for the next stock market rally to lift its value. That doesn’t always happen with every share I buy as individual companies can struggle or fail. But with a diversified portfolio, I aim to protect myself from having too much of a weighting to individual stocks. There are lots of exciting opportunities out there right now. At some point, lockdown has to ease, then people can go out and start spending again. I would rather buy shares before that happens, than afterwards. I always aim to buy and hold for the long term, so I can benefit from the next stock market rally, and the rally after that. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading 39% of global legal tender currencies are 100% male Dixons Carphone shares: here’s what I’m doing ISA investing: I plan to hold these UK shares I bought in 2020 for 10 years! I think the BP and Royal Dutch Shell share prices can rally now. Here’s why Will the Avacta share price keep climbing? 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 rally: here’s why I’m buying FTSE 100 shares in an ISA appeared first on The Motley Fool UK.
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  3. General Electric Shareholders (07/04/2021 - Reddit Stocks)
    The 1 for 8 stock split is in the proxy statement I just received. From the link provided, you can download the proxy statement. The reverse stock split is discussed on pages 60-63. For the record, I am against the stock split. GE has 7.5 billion shares outstanding with 13.2 billion shares authorized. How did these numbers get so big? After the stock split they estimate there will be 1.1 billion shares outstanding and 1.65 billion shares authorized. So after the split, 2/3 of the stock will be outstanding and 1/3 float. Then there is the question of fractional shares. Right now GE is not planning on issuing fractional shares. So unless the number of shares you own is divisible by 8, you will receive cash in lieu of fractional shares.https://www.ge.com/investor-relations/proxy-statement   submitted by   /u/inkslingerben [link]   [comments]
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  4. I’m almost embarrassed to ask this, but... (04/05/2021 - Reddit Stocks)
    If you consistently buy a stock when it dips, and then sell it with profit and repeating that with the same stock throughout a steady increase, would you make more than if you just held? Considering each time one buys back in, they are paying a higher price. For example, let’s say you kept going in and out of one position as shown—- Buy: 100 shares at $10 Sell: 100 shares at $15 Buy: 100 shares at $12 Sell: 100 shares at $16 Buy: 100 shares at $15 Sell: 100 shares at $20 Or is it better to just hold through the dips? It seems like it would be a similar profit either way, but am I missing something?   submitted by   /u/ADHDoll [link]   [comments]
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  5. London Markets: Marshalls rallies on upbeat outlook as FTSE 100 edges up (11/03/2021 - Market Watch)
    Shares of construction products maker Marshalls saw its best one-day climb in nearly a year, while the broader U.K. stock market inched higher.
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  6. Put options vs shorting stock? (20/05/2021 - Reddit Stocks)
    If dealing with put options on stocks where the notional is either a big part of your account balance or even above it, is it financially better to short a stock you think is going down? Like if I think stock XYZ trading at $100.00 is going to go down, is it more responsible to short sell five or ten shares than it is for me to buy a put option? Actually, if I can afford 100 shares of stock XYZZ which trades at $20.00 and I think it is going down, is it actually more responsible to short 100 shares than it is to buy a put option? The put option has an expiry date and theta decay. But the short shares only move on price.   submitted by   /u/peachezandsteam [link]   [comments]
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  7. I have a portfolio of ~40 stocks. Every 2 weeks I buy more shares in 1 or 2 stocks and sometimes also sell some of the shares I have in a stock or 2. How can I view in eTrade annualized weighted performance of my portfolio?? (29/05/2021 - Reddit Stock Market)
    I have a stock portfolio on eTrade. Every two weeks I take a bit of my pay check and buy a few shares of one or two stocks and sometimes I sell out of part of another stock position to take some profit. I want to compare the annualized performance of my portfolio with the S&P 500 and other indices. eTrade gives me a lot of data like portfolio gain % and an actual dollar $ gain on each investment and overall in my whole portfolio. Which is great. But I am unable to figure out how to see my annualized performance on eTrade, even though I would expect this to be a very simple calculation that eTrade could provide. For example: so if I buy 25 shares of stock A on Feb 1, buy 2 shares of stock B and buy 8 shares of stock C on Feb 15, and buy 12 shares of stock D and SELL 5 shares of stock A on March 2 then how do I calculate the average weighted annualized return of my portfolio a year or two later? Is there a way to view this information automatically calculated on eTrade? Or does a different trading platform provide this kind of calculation automatically? Or do I just need have to manually calculate this myself on Excel?   submitted by   /u/David-P8383 [link]   [comments]
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  8. Outstanding Failure to Delivers and Stock Splits (21/03/2021 - Reddit Stock Market)
    Hi all! If a stock has a large number of outstanding failure to delivers that haven’t been resolved, and then the stock undergoes a stock split, would the number of outstanding shares that need to be delivered also be split? For example, company X has 200,000 shares marked as ‘Failed to Deliver’. The company then undergoes a 10:1 stock split. Will that mean that there are now 2,000,000 shares marked as “Failed to Deliver”? How would this affect the institutions who are failing to deliver these shares? Would it negatively affect the ability for whoever is in charge of locating these shares to actually discern which shares are counterfeit or missing, etc?   submitted by   /u/kn347 [link]   [comments]
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  9. Question about selling a stock and buying it back again (27/03/2021 - Reddit Stock Market)
    Yesterday I wanted to transfer the shares I owned of a certain stock from my personal account to a TFSA. I had 2000 shares of $Stock at an average of 0.72 cents. The current price was 0.85 cents so I had already made a little over $200 in profit. I sold all 200 shares of $Stock and bought the same amount in my TFSA at the same price. My average is now 0.85 cents. I plan to hold $Stock long term and could potentially see a 10x or more return. Did I mess up by doing this transfer or will nothing be effected compared to if I kept the shares in my personal account?   submitted by   /u/Ryan_Parmelee [link]   [comments]
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  10. Question about indexes. (13/05/2021 - Reddit Stocks)
    Hello, To keep things short - is it a good idea to half my investment in the FTSE 100 and buy into an index for the S&P 500 just for stability? I was also thinking of getting into an emerging markets index. ​ Also, what about world index trackers? Would it be better to sell my FTSE/S&P stock and buy all into that to keep the majority of my money in? ​ I've been stock picking a while but I don't have enough time to monitor and work with my account anymore so I figured it'd be better to dump it into an index and focus on school for now.   submitted by   /u/ColtAzayaka [link]   [comments]
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  11. 2 FTSE 100 shares to buy right now (10/03/2021 - The Motley Fool UK)
    Considering the improving outlook for the economy, I’ve been searching for FTSE 100 shares to buy right now. I believe a couple of companies have recently fallen on hard times but could generate outstanding returns for investors in the long run.  FTSE 100 bargain The first company I’d buy for my portfolio of blue-chip stocks today is AstraZeneca (LSE: AZN). Since the middle of last year, shares in this pharmaceutical giant have declined in value by around 23%, excluding dividends.  I think this is a great opportunity to take advantage. After these declines, shares in the FTSE 100 business are changing hands at just 15 times 2020 projected earnings. That’s compared to the pharmaceutical sector average of around 18.  Having said that, these are only projections at this stage. There’s no guarantee the company will manage to hit the earnings forecasts analysts have currently laid out. Indeed, analysts expect the group’s net income to increase to 200% over the next two years. While Astra will benefit from the booming demand for its coronavirus jab, this projected growth seems a tad optimistic. There’s also the risk that income could decline as the pandemic recedes and the need for the jab falls.  Still, there’s more to this FTSE 100 group that its coronavirus vaccine. It is a leader in the development and production of oncology treatments, and several of these are expected to yield significant profits for the organisation in the next few years.  This potential, coupled with the group’s discounted valuation, leads me to conclude this is one of the best shares to buy now. That’s why I’d buy the stock for my portfolio today.  Best shares to buy right now Late last week, shares in the London Stock Exchange (LSE: LSEG) plunged after the company warned that rising costs would hit its bottom line in the next few years. But while other investors have been selling, I think this could be an excellent opportunity to snap up shares in this exchange operator at a discounted valuation. Right now, the stock is changing hands at a forward price-to-earnings (P/E) multiple of 27, compared to its long-term average of around 30.  The London Stock Exchange has a huge competitive advantage over most financial services firms in the UK. It operates the at plumb end of the stock market. That means market participants almost have no choice but to use its services.  This has led to growing profitability over the past five years. Net income at the FTSE 100 firm has expanded at a compound annual rate of 5% over the period. As we advance, I think the group should be able to build on its existing position in the financial markets to drive growth. That said, it does face some significant risks. These include antitrust investigations, increased regulations, and rising costs. And just because the London Stock Exchange is the largest market operator today doesn’t mean it will continue to be so indefinitely. Competitors are emerging, and these could eat away at its market share over the long term.  Looking past these risks, I’d buy this stock for my portfolio as I believe it’s one of the best shares to buy right now in the FTSE 100.  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 Hit, hold or fold? Unilever, GlaxoSmithKline, AstraZeneca shares The London Stock Exchange share price slides, is this stock a good investment? AstraZeneca share price: back to sub-£70 levels. Should I buy now? FTSE 100 today: 2 stocks I’d buy on the latest stock market news 2 UK growth stocks that would have doubled my money if I’d invested 2 years ago 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 2 FTSE 100 shares to buy right now appeared first on The Motley Fool UK.
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  12. Why is the FTSE 100 is rising? (12/05/2021 - The Motley Fool UK)
    In mid-April 2021, the FTSE 100 breached the 7,000-point mark for the first time since before the pandemic. Most recently, on Friday 7 May, the index surged to a 15-month high of over 7,100 points. But what exactly is behind the FTSE 100’s recent surge? We have the answers. [top_pitch] What has happened to the FTSE 100 in the last 12 months? Stock markets around the world went into steep decline in the first part of 2020. The FTSE 100 tracks the performance of the 100 biggest companies listed on the London Stock Exchange. It started the year at 7,542 points. The index plunged to below 5,000 points in mid-March as the scale of the Coronavirus pandemic became clear and fears about its impact on the global economy grew. The FTSE 100 made a recovery alongside the economy later in the year after the intervention of the government and the Bank of England. However, the FTSE 100 still managed to clock its worst year on record since the 2008 financial crisis. The FTSE’s total losses in 2020 came to 14.3%. This made it the worst performer among the world’s largest stock indexes. In 2021, though, things are looking up. The index has been rising steadily in the last couple of months. What is causing the FTSE 100 to rise? Various factors have contributed to the FTSE 100’s rise to more than 7,100 points. The biggest factor appears to be greater optimism about the UK’s economic recovery. Over the last few weeks, several financial institutions and economists have expressed that the UK economy is set for its biggest boom since the post-war period. This is on the back of a hugely successful rollout of the Covid-19 vaccine and the anticipated reopening of the country. Indeed, growing optimism about the recovery of the UK economy has prompted British businesses to increase hiring and offer higher pay to new employees, according to Reuters. The impact of a positive economic outlook is an increase in investor confidence. This, in turn, is driving the FTSE 100 higher. As investors become more confident about the prospects of the economy, they are increasingly willing to put their money into riskier assets like stocks and shares. This includes the stocks and shares of FTSE 100 companies, which investors expect to profit from in 2021 as pent-up demand is unleashed into the market once the country reopens fully. [middle_pitch] How high could the FTSE 100 go? That is the big question. The FTSE 100’s all-time high is 7,903.50. It achieved this feat in 2018. We have already seen other stock indexes from around the world, including the S&P 500 and the Nasdaq Composite, recover their pandemic losses to reach new highs in the last few weeks. Could the FTSE also hit a new all-time high in 2021? We’ll have to wait and see on that one. The UK’s economy is not expected to recover to pre-pandemic levels until at least the second quarter of 2022. But if the current recovery trend is sustained, and if there are no major setbacks in regards to the fight against the pandemic, there is no reason why the FTSE 100 should not continue to rise. This is certainly good news for investors. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading FTSE 100 stocks I’d buy as the UK economy powers ahead The Glencore share price is up 10% already this week. What’s going on? The FTSE 100’s Spirax-Sarco share price soars as it expects to beat guidance! Should I buy Airbnb shares now? 3 UK shares to buy today The post Why is the FTSE 100 is rising? appeared first on The Motley Fool UK.
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  13. FTSE 100: these 5 shares are falling fast. Which would I buy today? (03/03/2021 - The Motley Fool UK)
    So far in 2021, the UK FTSE 100 index has actually beaten the US S&P 500 index. As I write, the Footsie trades around 6,646, up 185 points (2.9%) in 2021. The S&P 500 is up around 90 points in 2021, only 2.4% ahead. Given the huge outperformance of the S&P over the Footsie for the past decade, perhaps the tide is turning in favour of UK shares? The FTSE 100’s biggest fallers over one month Of course, not all FTSE 100 shares have risen in 2021. As well as some big gainers, there have been some huge howlers. For example, take these five sliding stocks, the worst performers in the Footsie over one month: FTSE 100 member 1W 1M 3M 6M Unilever (Consumer staples) -2.8% –10.1% -13.3% -15.6% SSE (Energy) -3.3% –10.2% -2.5% 8.3% GlaxoSmithKline (Pharma) -0.5% –10.9% -13.3% -17.8% Just Eat Takeaway.com (Food delivery) -1.7% –17.4% -13.9% -15.0% Ocado Group (Grocery tech) -6.5% –21.4% -0.1% -8.0% Which stocks wouldn’t I buy today? As you can see, the FTSE 100’s worst performer over the past month is online grocer Ocado. Its shares have crashed more than a fifth (21.4%) in a month. Then again, Ocado stock is up 95% over one year, 303.2% over three years, and 770.1% over five years. This makes it the FTSE 100’s best performer over five years, so it’s hardly surprising its shares are taking a breather after such magnificent gains. The second-worst FTSE 100 stock over the past month is Just Eat Takeaway (JET). This food-delivery firm is known for its Just Eat UK brand. Although JET shares have dived by more than a sixth (17.4%), they are up 1.9% over the past 12 months. JET is a fast-growing company, booming in the pandemic and popular with growth investors. But it keeps making large losses as it scales up. Hence, as a value investor, JET is not for me. I’d buy these two value shares Third on my list of laggards is global pharma giant GlaxoSmithKline (GSK). The GSK share price has declined by more than a tenth (10.9%) over one month. It’s also been one of the FTSE 100’s worst performers over six and 12 months. GSK is the largest individual holding in my family portfolio, so its recent weakness — down a quarter (25%) in a year — has cost us plenty. At the current share price of 1,206p, GSK has a price-to-earnings ratio of 10.6 and an earnings yield of 9.5%. At over 6.6%, GSK’s yearly dividend yield is more than double that of the wider Footsie. These fundamentals look cheap to me, so I will keep buying more GSK stock. Second, I also like the look of consumer-goods colossus Unilever, which sells more than 400 brands worldwide. Every day, more than 2.5bn people use Unilever products. That’s almost a third of the global population. Yet the Unilever share price is down a tenth (10.1%) over a month and almost a sixth (15.6%) over six months. At the current share price of 3,805p, Unilever trades on a price-to-earnings ratio of 20.8% and an earnings yield of 4.8%. The dividend yield of 3.9% is useful and, as an income-hungry investor, I’d welcome it in my family portfolio. Hence, Unilever is the second stock I’d buy from these five FTSE 100 fallers. In summary, as a FTSE 100 value investor and income-seeker, I’m not put off by falling share prices. However, what works for me might not work for you. Thus, please take great care when selecting your shares! One stock for a post-Covid world… Covid-19 is ripping the investment world in two… Some companies have seen exploding cash-flows, soaring valuations and record results… …Others are scrimping and suffering. Entire industries look to be going extinct. Such world-changing events may only happen once in a lifetime. And it seems there’s no middle ground. Financially, you’ll want to learn how to get positioned on the winning side. That’s why our expert analysts have put together this special report. If the pandemic has completely changed our lives forever, then they believe that this stock, hidden inside the tech-heavy NASDAQ, could be set for monstrous gains… Click here to claim your copy now — and we’ll tell you the name of this US stock… free of charge! More reading Investing in renewables: 5 UK shares I expect to rally in 2021 What is a ‘stonk’ tip? How I’d invest £1,000 in UK shares right now 5 UK shares I’d buy after Budget 2021 2 shares to buy today for my Stocks and Shares ISA Cliffdarcy owns shares in GlaxoSmithKline. The Motley Fool UK has recommended GlaxoSmithKline, Just Eat Takeaway.com N.V., 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 FTSE 100: these 5 shares are falling fast. Which would I buy today? appeared first on The Motley Fool UK.
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  14. These are the current constituents of the FTSE 100 (14/05/2021 - The Motley Fool UK)
    The FTSE 100, also known as the ‘Footsie,’ is a stock market index comprised of shares from the 100 largest companies on the London Stock Exchange (LSE) by market capitalisation. In this article, we’ll look at the current constituents of the FTSE 100 and tell you of the requirements for inclusion as well as how often the list is reviewed. Which companies are constituents of the FTSE 100? The following is a list of the top 20 constituents of the FTSE 100 by market capitalisation as of 14 May 2021. Rank Ticker Company name 1 ULVR Unilever 2 AZN AstraZeneca Plc 3 HSBA HSBC Holdings Plc 4 RIO Rio Tinto Plc 5 GDE Diageo Plc 6 GSK GlaxoSmithKline 7 BATS British American Tobacco Plc 8 BP BP PLC 9 RDSA Royal Dutch Shell Plc ‘A’ 10 RDSB Royal Dutch Shell Plc ‘B’ 11 BHP BHP Group plc 12 RB Reckitt Benckiser Group Plc 13 AAL Anglo American Plc 14 GLEN Glencore Plc 15 PRU Vodafone Group Plc 16 LSEG Prudential Plc 17 VOD London Stock Exchange Group Plc 18 REL RELX Plc 19 LLOY Lloyds Banking Group Plc 20 NG National Grid Plc NB: Royal Dutch Shell is listed twice as it has two classes of shares on the LSE. You can find a complete list of the 100 companies that comprise the index and key information about them, such as their current market capitalisation, current share price and daily percentage change in share price, on the LSE website.  [middle_pitch] What are the requirements for inclusion in the FTSE 100? First, a company’s shares must be listed on the LSE and be denominated in pounds sterling. The company must also meet the minimum free float and stock liquidity requirements as established by the FTSE Group that operates and maintains the index. The final and most obvious criterion is that a company must be one of the top 100 companies by market capitalisation on the exchange. When are changes made to the constituents of the FTSE 100? A review of the FTSE 100 constituents is undertaken every quarter, usually in March, June, September and December. The rules for promoting or removing a company from the index are as follows: A share is promoted into the FTSE 100 if it rises to 90th position or above (by market cap). A share is removed from the FTSE 100 if it falls to 111th position or below (by market cap). This system is meant to reduce the number of continuous changes to the index as it ensures that a company only gets relegated or promoted when it clearly needs to be moved. That being said, just because a company hasn’t dropped to 111th position or below doesn’t mean that it won’t be relegated. It might still need to be dropped to make way for other companies that have met the inclusion criteria and are proving themselves more worthy of a place on the index.  How can I invest in the FTSE 100? There are two main ways to invest in the FTSE 100: Purchase individual shares in a FTSE 100 constituent company Invest in an exchange-traded fund (ETF) that tracks the index’s prices Before you can start investing, you will need a share dealing account. To help you narrow down your options, check out our comparison of some of the top providers of share dealing accounts in the UK. You can also invest in the Footsie through a stocks and shares ISA. Investing this way comes with the added benefit of tax efficiency. When you invest through a stocks and shares ISA, any income or gains from your investment are not taxed. Keep in mind, however, that tax rules can change and their effects on you will depend on your individual circumstances. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading I’d pick this share for its 6%+ dividend yield Can I be denied a job due to bad credit? A FTSE 100 share I’m buying for the stock market recovery Will the Admiral share price reach £35? Can I really save money by living in a tiny home? The post These are the current constituents of the FTSE 100 appeared first on The Motley Fool UK.
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  15. Just go into the stock market for the first time. (21/05/2021 - Reddit Stocks)
    22 (M) and just got into the stock market for the first time. I currently only have $150 I am investing (once I get more money I will invest more). I was looking at more NFT’s and Altcoins. What should I improve on next time? 19.42 shares in Cinedgm at $1.29 13.33 shares in Liquid Media at $1.88 12.49 shares in Allied Esports Entertainment at $2.4 5.1 Shares in Vinco Ventures at $3.90   submitted by   /u/Camball1998 [link]   [comments]
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  16. At what point should you sell your stock shares? Help (09/05/2021 - Reddit Stocks)
    So I’m very new to investing. VERY NEW. Let’s say I buy 50 shares of Stock A for $100. If overtime, 20 shares have now made me $100, should I take out those 20 and keep 30 shares and let them keep growing? But then I think, ok if I’m trying to make a profit shouldn’t I take out 30 or 40 shares? Or should I not take out any and hold them forever? This is a dilemma I’m coming across that I don’t understand. Ppl say to hold for years and just let your investment grow. But at what point do I actually cash out the investment and reap the profits? To me I’m seeing it as having a lot of money but also not much at all. I could have 100k invested but if I never take it out and actually spend it, it’s like having no money at all. But I also don’t want to sell the shares that are making me money. Ughh I’m so confused. It will help if you tell me personally for you, at what point do you sell shares?   submitted by   /u/EternalBlaze18 [link]   [comments]
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  17. 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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  18. UK shares: if I could buy just one FTSE 100 stock, this would be it (24/04/2021 - The Motley Fool UK)
    If I had to pick just one FTSE 100 stock to buy out of all the UK shares available to me, I’d acquire SSE (LSE: SSE). There are a couple of reasons why I’d pick this business over any other. It operates in the relatively stable utility industry, offers investors an attractive level of income, and has the potential to achieve impressive earnings growth over the next decade or so.  While other UK shares in the FTSE 100 might make better income or growth investments, I think SSE offers the best of all worlds. That’s why I’d buy the stock over any other today.  FTSE 100 growth stock Power generator and network operator SSE fills a vital role in the UK economy. It provides energy to millions of households. Unlike other sectors, this is a very defensive business. Consumers will always need energy. Demand isn’t subject to fashion trends, and it’s relatively resistant to economic cycles. As such, SSE’s investment plans stretch out over decades. This is good news for investors. There’s a very high chance the company will still be providing energy to customers two decades from now. Therefore, it’s highly likely the stock will still be throwing off profits for investors in 20 years. This is really the primary reason why I’d buy SSE over other UK shares in the FTSE 100. If I had to own one company for the next two decades, I think there’s a high chance the SSE business will still be here.   Management is currently future-proofing the enterprise. It wants to triple the company’s renewable energy output by 2030. To that end, SSE is selling £2bn of non-green assets while searching for new opportunities. It’s submitted a bid to develop Denmark’s largest offshore wind farm and formed an Iberian partnership to develop its renewables expertise overseas. On top of these international efforts, the FTSE 100 company has the largest wind farm pipeline in the UK.  SSE wants to invest up to £15bn in these growth initiatives over the next few years. As well as this potential for earnings growth, the stock also offers a dividend yield of 5.6%.  Risks  While I’d buy SSE for the next two decades, there are some challenges the company may face as we advance. The UK utility sector is highly regulated. If regulators decide to take a hard line with providers, it could impact profits. Further, SSE is heavily reliant on debt to fund its capital spending plans. It has around £9bn of debt at the moment and may need more to support its large renewables projects. If creditors aren’t cooperative, SSE’s growth plans may fail. To free up cash, the firm may be forced to slash its dividend.  Even after taking all of these risks and challenges into account, I still think this is one of the best UK shares in the FTSE 100 to buy right now.  One stock for a post-Covid world… Covid-19 is ripping the investment world in two… Some companies have seen exploding cash-flows, soaring valuations and record results… …Others are scrimping and suffering. Entire industries look to be going extinct. Such world-changing events may only happen once in a lifetime. And it seems there’s no middle ground. Financially, you’ll want to learn how to get positioned on the winning side. That’s why our expert analysts have put together this special report. If the pandemic has completely changed our lives forever, then they believe that this stock, hidden inside the tech-heavy NASDAQ, could be set for monstrous gains… Click here to claim your copy now — and we’ll tell you the name of this US stock… free of charge! More reading 3 UK shares to buy for a Stocks & Shares 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 UK shares: if I could buy just one FTSE 100 stock, this would be it appeared first on The Motley Fool UK.
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  19. Stock market rally: 2 FTSE 100 shares I think may be among the best shares to buy today (12/02/2021 - The Motley Fool UK)
    Investing money in FTSE 100 shares after the recent stock market rally could still be a shrewd move. The index continues to trade around 15% down on its record high. Therefore, there appears to be scope for further capital gains after its recent rise. Of course, no gains can ever be taken for granted when it comes to investing money in shares. The stock market can fall heavily – as the 2020 stock market crash showed. It can also decline without any prior warning. However, on a long-term view, the FTSE 100 has a long track record of growth. As such, these two shares could be worth buying in a diverse portfolio. FTSE 100 shares to capitalise on a global economic recovery Many FTSE 100 shares have international operations that could benefit from a global economic recovery. Among them is mining company Rio Tinto. Its financial performance is closely linked to the prospects for the world economy. So, as it’s forecast to return to strong growth in 2021 and 2022 as the end of the pandemic comes more into focus, operating conditions for the mining sector could improve. Despite this prospect, Rio Tinto appears to offer good value for money at the present time. The company has a dividend yield of around 5.5%. This suggests it could offer a margin of safety. Clearly, no dividend is ever guaranteed. Especially from a cyclical industry such as the mining sector. Similarly, the company’s performance could be impacted by unforeseen risks and circumstances that are difficult to accurately predict. However, with a solid balance sheet and major investment programme, the company’s prospects could be relatively bright compared to other FTSE 100 shares. As such, it may offer sound total returns versus the wider index. A growth opportunity in a stock market rally Other FTSE 100 shares could benefit from a long-term stock market rally. For example, Taylor Wimpey may deliver improving sales and profit growth as a result of a stronger economic performance. It could drive improving consumer confidence that has a positive impact on demand for new homes. Meanwhile, a shortage of supply may have a positive impact on the performance of housebuilders. Furthermore, low interest rates may help to make housing more affordable. Clearly, risks such as affordability concerns and an uncertain economic outlook for the UK could weigh on the sector’s performance in future. Similarly, changes to the government’s Help to Buy scheme and stamp duty may cause Taylor Wimpey’s share price to be relatively volatile in the coming months, and even years. But the company’s price-to-earnings (P/E) ratio is around 11. This suggests many of these factors may have already been priced in by investors. And that could mean there’s scope for strong capital gains in the coming years relative to other FTSE 100 shares. 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 Stock market recovery: is it too late to make a passive income from cheap shares? 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 Peter Stephens owns shares of Rio Tinto and Taylor Wimpey. 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 Stock market rally: 2 FTSE 100 shares I think may be among the best shares to buy today appeared first on The Motley Fool UK.
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  20. A question about the mechanics of a short squeeze (04/05/2021 - Reddit Stock Market)
    Hi all I am trying to understand how does a short squeeze work, in particular when a person shorts a stock but can't cover it when the stock prices goes up against his prediction. I still have a gap in my understanding and I thought you maybe able to help fill it. I try to explain here: Let's suppose we have: 1. `Person 1` 2. `Person 2` 3. `Person 3` 5. `Marker Maker` And 10 shares of a given stock. Initially we have: | Who? | Shares | |----------|--------| | `Person 1` | 0 | | `Person 2` | 0 | | `Person 3` | 0 | | `Market Maker` | 10 | Then let's say `Person 1`, and `Person 2` buy 1 share each: | Who? | Shares | |----------|--------| | `Person 1` | 1 | | `Person 2` | 1 | | `Person 3` | 0 | | `Market Maker` | 8 | Then `Person 3` borrows 8 shares from the MM with the intention of shorting it: | Who? | Shares | |----------|--------| | `Person 1` | 1 | | `Person 2` | 1 | | `Person 3` | 8 | | `Market Maker | 0 | `Person 3` then sells those shares to `Person 1` and `Person 2` at the market price (4 shares to each): | Who? | Shares | |----------|--------| | `Person 1` | 5 | | `Person 2` | 5 | | `Person 3` | 0 | | `Market Maker` | 0 | Let's pretend that after sometime `Person 3` realizes that the share price will not go down and he gives up and decides to buy back the shares and return it to the Market Maker. Irrespective of initial prices, borrow fees, etc. Let's say `Person 1` and `Person 2` only sell their shares for a certain price: | Who? | Price | |----------|--------| | Person 1 | $420 | | Person 2 | $69 | Let's say `Person 3` only has $5 in his bank account. Does that mean, that the Market Maker liquidates `Person 3`, takes his $5, and then is obligated to buy the shares at the prices set by `Person 1`, `Person 2`, with two $420 shares of `Person 1` remaining in his possession?   submitted by   /u/OxCoff33Bab3 [link]   [comments]
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  21. What happens when a company buys back stock (17/05/2021 - Reddit Stocks)
    Do they just own the stock ? Does the stock get removed from circulation and now the outstanding shares are reduced? If that's the case does the value of the company go down? Price of stock * outstanding shares   submitted by   /u/widdleavi1 [link]   [comments]
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  22. Why is the FTSE 100 rising? (12/05/2021 - The Motley Fool UK)
    In mid-April 2021, the FTSE 100 breached the 7,000-point mark for the first time since before the pandemic. Most recently, on Friday 7 May, the index surged to a 15-month high of over 7,100 points. But what exactly is behind the FTSE 100’s recent surge? We have the answers. [top_pitch] What has happened to the FTSE 100 in the last 12 months? Stock markets around the world went into steep decline in the first part of 2020. The FTSE 100 tracks the performance of the 100 biggest companies listed on the London Stock Exchange. It started the year at 7,542 points. The index plunged to below 5,000 points in mid-March as the scale of the Coronavirus pandemic became clear and fears about its impact on the global economy grew. The FTSE 100 made a recovery alongside the economy later in the year after the intervention of the government and the Bank of England. However, the FTSE 100 still managed to clock its worst year on record since the 2008 financial crisis. The FTSE’s total losses in 2020 came to 14.3%. This made it the worst performer among the world’s largest stock indexes. In 2021, though, things are looking up. The index has been rising steadily in the last couple of months. What is causing the FTSE 100 to rise? Various factors have contributed to the FTSE 100’s rise to more than 7,100 points. The biggest factor appears to be greater optimism about the UK’s economic recovery. Over the last few weeks, several financial institutions and economists have expressed that the UK economy is set for its biggest boom since the post-war period. This is on the back of a hugely successful rollout of the Covid-19 vaccine and the anticipated reopening of the country. Indeed, growing optimism about the recovery of the UK economy has prompted British businesses to increase hiring and offer higher pay to new employees, according to Reuters. The impact of a positive economic outlook is an increase in investor confidence. This, in turn, is driving the FTSE 100 higher. As investors become more confident about the prospects of the economy, they are increasingly willing to put their money into riskier assets like stocks and shares. This includes the stocks and shares of FTSE 100 companies, which investors expect to profit from in 2021 as pent-up demand is unleashed into the market once the country reopens fully. [middle_pitch] How high could the FTSE 100 go? That is the big question. The FTSE 100’s all-time high is 7,903.50. It achieved this feat in 2018. We have already seen other stock indexes from around the world, including the S&P 500 and the Nasdaq Composite, recover their pandemic losses to reach new highs in the last few weeks. Could the FTSE also hit a new all-time high in 2021? We’ll have to wait and see on that one. The UK’s economy is not expected to recover to pre-pandemic levels until at least the second quarter of 2022. But if the current recovery trend is sustained, and if there are no major setbacks in regards to the fight against the pandemic, there is no reason why the FTSE 100 should not continue to rise. This is certainly good news for investors. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading 5 investing mistakes to avoid FTSE 100 stocks I’d buy as the UK economy powers ahead The Glencore share price is up 10% already this week. What’s going on? The FTSE 100’s Spirax-Sarco share price soars as it expects to beat guidance! Should I buy Airbnb shares now? The post Why is the FTSE 100 rising? appeared first on The Motley Fool UK.
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  23. 2 FTSE 100 investments for a Stocks and Shares ISA (07/05/2021 - The Motley Fool UK)
    The FTSE 100 has recently reached a post-pandemic high. However, despite this performance, I think it can head even higher. This is because many businesses in the lead index continue to look cheap compared to their potential.  With that in mind, here are two index champions I’d buy for my Stocks and Shares ISA today to capitalise on this trend.  FTSE 100 investments The first company I’d buy for my FTSE 100 ISA portfolio is Anglo American (LSE: AAL).  I believe this mining conglomerate is perfectly positioned to ride the global economic recovery over the next few years. According to the company’s latest trading update, production from its copper and iron ore mines increased 9% and 1% respectively for the third quarter of its financial year.  This is notable because the prices of both of these commodities have recently reached multi-year highs. Higher production and higher prices suggest Anglo could be on track to report a bumper trading performance this year.  Of course, the most considerable risk of investing in any commodity business is that prices can fall as fast as they rise. So, while the company might be profiting from rising prices today, that might not last. As such, there’s no guarantee Anglo will report bumper profits this year.  Still, I think this FTSE 100 blue-chip could be one of the best ways to invest in the global economic recovery, due to its exposure to crucial resources.  Stocks and Shares ISA buy  The second FTSE 100 stock I’d buy for my ISA right now is Informa (LSE: INF).  This company’s been hit hard by the pandemic. The business, which runs events including the China Beauty Expo and the Monaco Yacht Show, had to pull out all the stops last year when most large events were cancelled.  The largest exhibition group in the world has tried to shift events online, but this hasn’t stopped the bleeding. The FTSE 100 company swung to a £1.1bn pre-tax loss in 2020, compared to a profit of £318m the previous year. Most might shy away from investing in such a business at this time, but I’m optimistic. Management thinks the company will report sales of £1.7bn this year. Based on that projection, City analysts believe the group will earn a net income of £309m.  This is the baseline projection, and if the world’s post-coronavirus recovery accelerates, Informa could surpass this figure. I think it will. That’s why I’d buy the FTSE 100 stock today for my Stocks and Shares ISA.  Of course, there’s also a chance the company will have to revisit these figures if the pandemic drags on. In that case, I think earnings and sales would therefore disappoint, and the stock could fall in value. As such, Informa may not be suitable for all investors but, with a favourable tailwind, I think it could be a great FTSE 100 recovery play.  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 Anglo American shares: should I buy as copper prices rise? Should I buy Anglo American shares? Is this one of the FTSE 100’s best shares to buy in 2021? Will the Anglo American share price keep rising in 2021? These 2 FTSE 100 stocks have doubled in a year! I’d still buy them 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 2 FTSE 100 investments for a Stocks and Shares ISA appeared first on The Motley Fool UK.
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  24. Reasons I’m investing in FTSE 100 shares right now (13/02/2021 - The Motley Fool UK)
    Over the last 12 months, the FTSE 100 has fallen by 13%. FTSE 100 shares are often from ‘old’ industries such as oil & gas and banking. The UK’s elite index has been left behind by those indexes, such as the S&P 500, that have more exciting, innovative technology companies. While I want some exposure to that, and indeed have an S&P 500 tracker, I think 2021 could be a year of recovery for the FTSE 100. However, a great deal depends on the virus, the vaccine rollout, and the hopefully resulting economic recovery. 4 reasons that give me optimism The first reason is value. Value is relative, but in my opinion the FTSE 100 offers plenty of scope for recovery from the pandemic, especially from financials. Low price-to-earnings ratios make me comfortable investing in UK large caps, such as banks and insurers. This provides a potential margin of safety.  As alluded to there could also be a boost in 2021 from shares bouncing back. All the more so if the economy does well as some commentators, and I, think it will do. The flipside, of course, is the economy may not do well and banks and oil & gas and industries that dominate the FTSE 100 may continue to underperform. I think although there is plenty of innovation out there, many FTSE 100 companies are built on proven business models. I think in most cases, these should endure through the coming years and for decades to come. Even big companies have some agility and with good management often have the financial resources to move with the times. An example of this is Royal Dutch Shell investing heavily in renewables as its industry changes.  Fourth, with dividends having been cut in 2020, there’s plenty of scope for dividend growth in the coming years. This is something I’m personally very excited about. So I plan to pick up a future passive income on the cheap.  What are the drawbacks of FTSE 100 shares Despite the cheapness of many FTSE 100 shares there’s a risk it could continue to underperform the US, as it starkly did in 2020. If lockdowns continue to inflate the share prices of technology companies, then investing in that market could be a better option. Also, some investment professionals are arguing emerging markets could have a strong 2020 as the dollar depreciates. The UK could of course by knocked off course by new strains of the virus that vaccines can’t be adapted to protect against. Technology companies could continue prefer listing in the US over the UK, which could hold back the market. As yet unknown consequences of Brexit could come to the fore, despite recent positive comments from the Barclays CEO. All these could hit the FTSE 100 and consequently the shares of UK large-cap companies. However, on the balance of things and as I’m based in the UK I plan that a lot of my new investments, cash permitting, will be in FTSE 100 shares. One stock for a post-Covid world… Covid-19 is ripping the investment world in two… Some companies have seen exploding cash-flows, soaring valuations and record results… …Others are scrimping and suffering. Entire industries look to be going extinct. Such world-changing events may only happen once in a lifetime. And it seems there’s no middle ground. Financially, you’ll want to learn how to get positioned on the winning side. That’s why our expert analysts have put together this special report. If the pandemic has completely changed our lives forever, then they believe that this stock, hidden inside the tech-heavy NASDAQ, could be set for monstrous gains… Click here to claim your copy now — and we’ll tell you the name of this US stock… free of charge! More reading Desperate to save? Try a no-spend challenge Why I’d buy dividend shares with more than just high yields in this stock market recovery Top income stocks for February 2021 Energy stocks and funds: oil, renewables, or a combination? My investment strategy 3 FTSE 100 shares from my best stocks to buy now list 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 Reasons I’m investing in FTSE 100 shares right now appeared first on The Motley Fool UK.
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  25. Stock market crash 2021: here’s what I’d do if it happens (01/03/2021 - The Motley Fool UK)
    As stock market investors we need to be prepared for all possibilities. This includes being prepared for a stock market crash, as we have learned from last year’s experience. Typically, it is unlikely that a big stock market crash in one year is followed by another the next year, but it does no harm to be ready.  Where did the stock market rally go? If we look at the stock market indexes in February, it is evident that the stock market rally has vanished. In fact, there was a fall in the FTSE 100 index average compared to January.  This may not be sustained or result in a market crash. Vaccinations, stimulus, low interest rates, and a growth bounce back are big reasons for the financial markets to stay buoyant.  Unless there is a fresh surge in coronavirus cases or the economy is in a far worse state than any of us imagine at this point, I think UK shares are set to do well in 2021.  What if there is another stock market crash? But if the risks play out, here are the three things I would do.  #1. Buy fear: I’d keep funds aside for investing when share prices are low. Many FTSE 100 shares have more than doubled from the lows they hit when the stock market crashed. In fact, many of them gained soon after. And this includes even those that were the worst hit like travel and tourism stocks.  If I think there is real long-term value to these stocks, I would not hesitate before buying these shares. I reckon that they could double my money in just a few months, but even if they do not, it is a great way to buy high-quality stocks at low prices.  #2. Hold on: I would hold on to my portfolio stocks. Even if at the moment there was little money to be made, I would not like to lose any. All gains and losses are notional until we sell the shares we hold. And a market crash is never the time to sell otherwise higher value stocks.  #3. Load up: This is true for income stocks as well. A low or no-growth income stock can be a real drag on the investment portfolio. Many companies stopped paying dividends last year and, as a result, their share prices fell even further.  But if I had loaded up on those stocks then, today my dividend yield on them would be even better after they reinstated passive income.  The take away In sum, the three things I would do are – buy, hold, and load up on existing holdings. I know it is easier said than done. We really never know whether the path ahead will get better or get worse. But if past stock market crashes are any indication of the trend, then we would be better off getting really optimistic when things go bad. It can be quite good for our investments.  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 UK shares to buy for a Stocks and Shares ISA Could investing in NIO stock today be like buying Tesla in 2015? 2 of the best UK shares to buy this March Royal Mail shares: is it the right time to buy? Can the IAG share price continue climbing after last week’s results? Views expressed 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 crash 2021: here’s what I’d do if it happens appeared first on The Motley Fool UK.
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  26. Why I’d drip-feed £500 a month into cheap FTSE 250 shares in an ISA starting today (18/02/2021 - The Motley Fool UK)
    Buying FTSE 250 shares could prove to be a profitable long-term strategy. The index continues to trade lower than it did a year ago. This suggests there may be opportunities to buy undervalued shares in high-quality businesses. Furthermore, the index’s larger weighting towards the UK compared to the FTSE 100 could provide it with scope for a strong recovery. The vaccine rollout may prompt a return to improved operating conditions for many UK-focused businesses. That makes a regular investment in domestic businesses relatively profitable in the coming years. Buying FTSE 250 shares today FTSE 250 shares could offer good value for money because the index trades lower than it did prior to the 2020 stock market crash. In fact, it’s currently around 5% down on its price from a year ago. Some stocks within the index are trading at significantly larger discounts to their prices 12 months ago. This could mean that FTSE 250 stocks offer good value for money at the present time. Looking ahead, the UK economy is widely anticipated to return to strong growth over the long run. It declined by nearly 10% in 2020, and the 2021 lockdown is likely to weigh on its performance in the first part of the year. But its prospects as the coronavirus pandemic wanes could become increasingly positive. Since the FTSE 250 relies on the UK for around half of its income, versus less than a third for the FTSE 100, it could be a sound means of benefitting from a likely UK economic recovery. The track record of the stock market Buying FTSE 250 shares has been a relatively profitable move in the past. Clearly, this is no guarantee of future returns. The past is never repeated perfectly in future. However, the index has returned around 9% per annum on a total return basis over the last 20 years. This suggests that buying shares in mid-cap companies on a regular basis could prove to be a sound move over the long run. Even if an investor matches the stock market’s performance over a similar timeframe, they could turn a realistic monthly investment into a surprisingly large sum. This could make a positive impact on their financial situation over the long run. For example, investing £500 per month at an annual return of 9% would produce a portfolio valued at around £335,000 over a 20-year time period. As such, with many FTSE 250 shares trading at low prices versus their historic averages at the present time, now could be an opportune moment to start buying them. As ever, there’s no guarantee of any positive future returns from any company. However, with a solid track record of growth, low valuations and a likely recovery for the UK economy ahead, mid-cap shares could well offer impressive total returns 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 2 of the best UK and US shares I’d buy in an ISA today and hold for 10 years As the Unilever share price continues to fall, I’m still buying the stock Why I’d buy dividend shares now to capitalise on a stock market recovery The RDSB share price is down 29% over the last 12 months. Here’s what I’d do Why sterling is rising, and what it means for you 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 drip-feed £500 a month into cheap FTSE 250 shares in an ISA starting today appeared first on The Motley Fool UK.
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  27. Why I’m still adding FTSE 100 shares to my best stocks to buy now list (13/02/2021 - The Motley Fool UK)
    FTSE 100 shares could offer long-term capital growth potential from their current price levels. After all, the index continues to trade below its record high. This suggests many of its members could be undervalued at the present time. Furthermore, the outlook for the world economy is widely forecast to improve in future. This may create more attractive operating conditions that makes FTSE 100 companies among the best stocks to buy now. Clearly, they’ve risks ahead of them. But through diversification and obtaining a margin of safety it may be possible to reduce potential threats. FTSE 100 shares trading at low prices Many FTSE 100 shares continue to trade at prices that are significantly below their all-time highs. The lead index is currently around 10% down on its price level from a year ago. This suggests there may be opportunities to buy a range of companies while they offer wide margins of safety. Investor sentiment towards some industries is weaker than towards others. For example, consumer goods companies have higher valuations than banks, retailers or travel & leisure businesses in general. This is understandable, since less popular industries among investors may face more challenging operating environments. However, where FTSE 100 shares have the financial means to overcome future difficulties, they could offer recovery potential. In many cases, investors may have priced in the potential for weak financial performance in the coming months. Therefore, there may be scope for an expansion in valuations among today’s unloved industries. This could make large-cap shares among the best stocks to buy now. The potential for an economic recovery FTSE 100 shares may also be among the best shares to buy now because of their long-term growth prospects. Clearly, there’s never any guarantee that the world economy will post positive GDP growth. It continues to face major risks, such as coronavirus, that could hold back its performance for some time. However, the scale of stimulus packages being rolled out and the vaccines being administered could allow many industries to face less disruption in future. This may contribute to improved operating conditions that strengthen their financial performances. The result of this effect on company valuations from across the FTSE 100 could be relatively positive over the coming years. This may catalyse a period of stronger growth for many large-cap shares that’s not currently reflected in their valuations. Reducing risks through diversification Although FTSE 100 shares may have a size and scale advantage versus smaller peers, and may be more diversified than small-caps, they still carry significant risks. As such, it’s prudent to invest in a wide range of businesses instead of concentrating capital on a more limited number of companies. Doing so can reduce overall risks. And that can lead to higher returns in 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 The Carnival share price plunges 60%! Should I buy the stock? Should I buy this 6%+ yielding oil stock instead of BP or Shell? Desperate to save? Try a no-spend challenge Reasons I’m investing in FTSE 100 shares right now Why I’d buy dividend shares with more than just high yields in this stock market recovery 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’m still adding FTSE 100 shares to my best stocks to buy now list appeared first on The Motley Fool UK.
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  28. My top FTSE 100 stocks to buy in June (02/06/2021 - The Motley Fool UK)
    The FTSE 100 has performed well over the past few months, with it now firmly over 7,000 points. This has been driven by the successful vaccine rollout and optimism among investors of a strong economic recovery. Nonetheless, I believe this has left certain stocks overpriced, and vulnerable to a correction in the near future. Therefore, it’s very important to be discerning when picking stocks, and these three FTSE 100 stocks are what I’m looking at closely for my portfolio in June. A drinks giant Diageo (LSE: DGE) has always been one of my favourite FTSE 100 stocks, and after its improved profit forecast for 2021 I’m even more optimistic. Indeed, Diageo now expects organic profit to grow by at least 14% in the year ending June 30. This announcement caused the Diageo share price to rise 4% on the day. But I believe that there’s further to rise. For instance, alongside the profit forecast, the company also stated that it was resuming its share buyback programme. This means that shareholders can expect £1bn of payments by the end of the 2022 financial year, demonstrating that the company’s liquidity is strong. That said, share buybacks can be a sign of limited growth and expansion opportunities, and this is a risk that much be considered with Diageo shares. A poor performing FTSE stock GlaxoSmithKline (LSE: GSK) has really struggled over the past year, with the shares falling by 18%. In the Q1 trading update, it was revealed that revenues have also fallen by 18%, demonstrating that the company may have limited growth ahead. Investors have also raised doubts about the future of CEO Emma Walmsley, querying whether she’s the right person to lead the FTSE 100 pharmaceuticals giant. Despite these problems, I’m more optimistic about GSK stock. Indeed, I can see changes incoming, especially once the consumer healthcare arm is spun off. This will allow GSK to focus solely on pharmaceuticals and vaccines. Personally, I think this simplification of the business is much needed, and I feel that it can return the renowned FTSE 100 stock back to growth. This is why GSK is one of my top stocks for June. An oil giant BP (LSE: BP) was one of the poorest performers in the FTSE 100 last year. However, with oil prices recovering fairly well recently, I feel that now is a good time to buy the stock. In fact, its reported profit in the first quarter was $4.7bn, compared with a loss of $4.4bn the year before. This demonstrates how the stock has managed to recover well. Further, BP has also managed to reduce its debt significantly. As such, it’s now able to return more money to shareholders through share buybacks. This is a sign of optimism for the company, while also demonstrating that the shares may be too cheap. On the other hand, oil is a risky investment, especially with questions over its future. Despite BP transitioning more into renewable energy, there are still risks over its long-term future. This must be considered in relation to the BP share price. One FTSE “Snowball Stock” With Runaway Revenues Looking for new share ideas? Grab this FREE report now. Inside, you discover one FTSE company with a runaway snowball of profits. From 2015-2019… Revenues increased 38.6%. Its net income went up 19.7 times! Since 2012, revenues from regular users have almost DOUBLED The opportunity here really is astounding. In fact, one of its own board members recently snapped up 25,000 shares using their own money… So why sit on the side lines a minute longer? You could have the full details on this company right now. Grab your free report – while it’s online. More reading 3 high-profile UK shares I’m avoiding Best shares to buy: 3 growth stocks I’d snap up now What’s going on with the BP share price? Top British stocks for June With £3,000, 3 stocks to buy and hold for the long term Stuart Blair owns shares of BP and Diageo. The Motley Fool UK has recommended Diageo and GlaxoSmithKline. 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 My top FTSE 100 stocks to buy in June appeared first on The Motley Fool UK.
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  29. My top FTSE 100 stocks to buy in June (02/06/2021 - The Motley Fool UK)
    The FTSE 100 has performed well over the past few months, with it now firmly over 7,000 points. This has been driven by the successful vaccine rollout and optimism among investors of a strong economic recovery. Nonetheless, I believe this has left certain stocks overpriced, and vulnerable to a correction in the near future. Therefore, it’s very important to be discerning when picking stocks, and these three FTSE 100 stocks are what I’m looking at closely for my portfolio in June. A drinks giant Diageo (LSE: DGE) has always been one of my favourite FTSE 100 stocks, and after its improved profit forecast for 2021 I’m even more optimistic. Indeed, Diageo now expects organic profit to grow by at least 14% in the year ending June 30. This announcement caused the Diageo share price to rise 4% on the day. But I believe that there’s further to rise. For instance, alongside the profit forecast, the company also stated that it was resuming its share buyback programme. This means that shareholders can expect £1bn of payments by the end of the 2022 financial year, demonstrating that the company’s liquidity is strong. That said, share buybacks can be a sign of limited growth and expansion opportunities, and this is a risk that much be considered with Diageo shares. A poor performing FTSE stock GlaxoSmithKline (LSE: GSK) has really struggled over the past year, with the shares falling by 18%. In the Q1 trading update, it was revealed that revenues have also fallen by 18%, demonstrating that the company may have limited growth ahead. Investors have also raised doubts about the future of CEO Emma Walmsley, querying whether she’s the right person to lead the FTSE 100 pharmaceuticals giant. Despite these problems, I’m more optimistic about GSK stock. Indeed, I can see changes incoming, especially once the consumer healthcare arm is spun off. This will allow GSK to focus solely on pharmaceuticals and vaccines. Personally, I think this simplification of the business is much needed, and I feel that it can return the renowned FTSE 100 stock back to growth. This is why GSK is one of my top stocks for June. An oil giant BP (LSE: BP) was one of the poorest performers in the FTSE 100 last year. However, with oil prices recovering fairly well recently, I feel that now is a good time to buy the stock. In fact, its reported profit in the first quarter was $4.7bn, compared with a loss of $4.4bn the year before. This demonstrates how the stock has managed to recover well. Further, BP has also managed to reduce its debt significantly. As such, it’s now able to return more money to shareholders through share buybacks. This is a sign of optimism for the company, while also demonstrating that the shares may be too cheap. On the other hand, oil is a risky investment, especially with questions over its future. Despite BP transitioning more into renewable energy, there are still risks over its long-term future. This must be considered in relation to the BP share price. One FTSE “Snowball Stock” With Runaway Revenues Looking for new share ideas? Grab this FREE report now. Inside, you discover one FTSE company with a runaway snowball of profits. From 2015-2019… Revenues increased 38.6%. Its net income went up 19.7 times! Since 2012, revenues from regular users have almost DOUBLED The opportunity here really is astounding. In fact, one of its own board members recently snapped up 25,000 shares using their own money… So why sit on the side lines a minute longer? You could have the full details on this company right now. Grab your free report – while it’s online. More reading 3 high-profile UK shares I’m avoiding Best shares to buy: 3 growth stocks I’d snap up now What’s going on with the BP share price? Top British stocks for June With £3,000, 3 stocks to buy and hold for the long term Stuart Blair owns shares of BP and Diageo. The Motley Fool UK has recommended Diageo and GlaxoSmithKline. 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 My top FTSE 100 stocks to buy in June appeared first on The Motley Fool UK.
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  30. 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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  31. Shareholders Approve NVIDIA Stock Split (09/06/2021 - Reddit Stocks)
    Shareholders finally approve NVIDIA stock split. The stock split will be payable in the form of a stock dividend. Each shareholder of record as of June 21 will receive an additional three shares of stock for every share held. The shares will be distributed after the market close on July 19, and the newly split shares will begin trading when the market opens on Tuesday, July 20. Existing shareholders won't have to do anything to receive the additional shares, which will be deposited directly into their brokerage accounts once the stock split takes effect. It's important to note that investors shouldn't necessarily expect the new shares to appear in their account immediately after the market close on July 19. As internal processes differ from brokerage to brokerage, it may take as many as several days for the new shares to show up in investor accounts. Finally, investors should remember that a stock split does nothing to change the value of the underlying business, but merely divides it into a great number of ownership portions. As an example, NVIDIA shares have lately been trading for roughly $700. This means instead of having one share worth $700, shareholders would own four shares, each worth $175.   submitted by   /u/gorays21 [link]   [comments]
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  32. Can the stock market rally continue? (21/05/2021 - The Motley Fool UK)
    Observing recent trends in the FTSE 100 index, I was left wondering if we are still in a stock market rally. After all, the index levels keep dipping back to sub-7,000 levels.  So I decided to take a step back, and look at the bigger FTSE 100 picture.  Turns out that the stock market has indeed been making gains.  Robust FTSE 100 trends May has actually been a very good month so far. Up till now, on average the FTSE 100 index value is just north of 7,000.  If this trend continues until the end of the month, it will be the first such instance in 15 months. The last time that the index closed above 7,000 was in February or before the pandemic struck.  Also on a year-on-year basis, the FTSE 100 index is now in its third consecutive month of double-digit gains. It is up 18% compared to May 2020.  The weak points While these are definite positives, I am still wondering if the stock market can continue to rise further. Or can it rise fast enough to be called a “rally”. Here is why. The index has fallen from last week. The fall is negligible, but it is there. Further, monthly growth is underwhelming. So far in May the index has grown by only 1.6% compared to a 3.1% increase last month.  Not too long ago, in February, the index had actually fallen by 1.8% from the month before. So it is possible that the same can happen again.  Also, at a macroeconomic level, expectations of an inflation spike have shaken investor confidence. Companies have increasingly pointed at inflation as a growing risk. Their costs are rising and some of them are passing these on to end customers as well. This has already started showing up in consumer prices. The US economy reported some ugly inflation numbers recently. Rising inflation is visible in the UK as well. High inflation can raise costs sharply and calls of knee-jerk policy reactions, which in turn can slow down growth rates. Looking ahead But I take heart in the fact that central banks think it is still a wait-and-watch situation. In other words, they do not think that inflation is certain to stay elevated.  Furthermore, the real growth spurt is yet to kick in. This is especially so in the UK, which will fully come out of lockdown only next month. While this could be inflationary too, inflation during high growth phases is to be anticipated. The more important aspect of high growth here is that it can support stock markets.  What’s next for the stock market rally? In sum, I think that as a FTSE 100 investor, I have much to look forward to. I see the current, if I may say, dull phase, as an opportunity to buy rather than give into doubts about the future.  One FTSE “Snowball Stock” With Runaway Revenues Looking for new share ideas? Grab this FREE report now. Inside, you discover one FTSE company with a runaway snowball of profits. From 2015-2019… Revenues increased 38.6%. Its net income went up 19.7 times! Since 2012, revenues from regular users have almost DOUBLED The opportunity here really is astounding. In fact, one of its own board members recently snapped up 25,000 shares using their own money… So why sit on the side lines a minute longer? You could have the full details on this company right now. Grab your free report – while it’s online. More reading 3 ways I’d aim to build a £250k investment pot using a Stocks and Shares ISA UK shares: 3 ways I’d invest £3k today Here’s how I’d protect my FTSE 100 portfolio from an inflation shock FTSE 100 stocks I’d buy as the UK economy powers ahead Is a sharp 13% crash in this FTSE 100 stock a buying opportunity for me? Manika Premsingh 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 Can the stock market rally continue? appeared first on The Motley Fool UK.
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  33. A ridiculously cheap FTSE 250 stock I’d buy today (19/04/2021 - The Motley Fool UK)
    Iron-ore miner Ferrexpo (LSE: FXPO) was my top stock for this month, and so far it looks like I made the right call. The FTSE 250 stock is up 4% since the start of the month. And compared to the same time last year, it is up a whole 185%! I think there are plenty of reasons why the Ferrexpo share price is up. If I take a top-down approach to understanding them, at the top is the stock market rally.  Stock market rally The FTSE 100 index zoomed past the 7,000 mark after over a year last week. The FTSE 250 index, of which Ferrexpo is a constituent, breached 22,000 even earlier in April. It has stayed above these levels through the month, making it FTSE 250’s best-ever month. Trends in the broad market reflect investor bullishness, which is driving share prices up as a whole. Ferrexpo is no exception.  Commodities find favour Next, sectorally speaking, commodities are in favour as public spending focuses on infrastructure creation. The commodity bull run has been underway since last year and according to leading forecasters, we are in for a commodity supercycle.  In line with this, miners’ share prices have risen across the board and that includes Ferrexpo.  But they have not just risen in anticipation of better times ahead. In the case of Ferrexpo, and others, improved commodity demand is showing up as healthy financials too.  Financially healthy In 2020, the company’s revenues grew by 13%, while its earnings grew by a huge 46%. Its net cash flows from operating activities grew by 45% and its dividends are up a massive 267% from 2019, boosted by its hefty interim dividend. Ferrexpo now has a 3.8% dividend yield, which is fairly healthy, especially for a growth stock.  Surprisingly dirt cheap But this is what takes the cake. The company’s price-to-earnings (P/E), which allows comparison with peers, is at sub-5 times. This is way below the price for any other miner that I have come across. What is next for the FTSE 250 stock Based on this reasoning for the Ferrexpo stock price rally, I reckon that it is quite likely to continue. As more investors look for cheap stocks, it should rally even higher. Even though it has run up quite a bit, the Ferrexpo stock is still below all-time highs. In other words, even by past standards, the share price has room to rise.  What I’d watch out for But there are two cases where I think things can go wrong.  One, if the pandemic decides to make a comeback. A fresh new Indian variant has just been found in the UK. These variants could be immune to vaccines. Two, just two months ago the stock market rally appeared to have stalled. It could happen again, leaving the Ferrexpo share price in limbo.  Takeaway for Ferrexpo Like many other investors, though, I am bullish that things will go right. Or at least they will go more right than wrong. And that is enough reason for me to buy this ridiculously cheap FTSE 250 stock. 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 Top British stocks for April 2 FTSE 250 shares with 6%+ yields I’d buy for my ISA now 3 dividend stocks to buy today Manika Premsingh 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 A ridiculously cheap FTSE 250 stock I’d buy today appeared first on The Motley Fool UK.
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  34. The FTSE 250 index is beating the FTSE 100 hands down. Here’s why (26/04/2021 - The Motley Fool UK)
    As the stock market rally continued, the FTSE 250 index crossed 22,000 earlier this month. The past week was bumpy, but it has managed to hold on to these levels.  This in itself is encouraging to me. And there are more positives to the FTSE 250’s performance. In April so far, it has risen by 4.3% on average compared to March. By comparison, the FTSE 100 index rose by a smaller 2.9%.  The FTSE 250 index’s bounce back from last year’s stock market crash has also been sharper. It has increased by 42.5% from April 2020. The FTSE 100 index has shown less than half that improvement of 20.6%.  Why is the FTSE 250 index rallying? I think there are two reasons for this.  One, the FTSE 100 index includes some of the biggest global companies, but the FTSE 250 index adds UK-focused companies to the list. The UK economy’s prospects are looking quite good right now, making investors bullish about the index.  Two, it is also for this reason that the FTSE 250 was hit harder. This, however, has contributed to a base effect. Let me explain this in some detail. As the UK and EU struck a last minute Brexit deal, the stock markets saw a relief rally at the end of December 2019. But the euphoria was short-lived as the corona crisis led to the stock market crash. Already just out of a sustained time of uncertainty, the crisis also resulted in loss of investor confidence in UK’s companies. This showed up in continued weakness in FTSE 250 in April last year. In March last year, the index fell more than the FTSE 100.  Stock markets can be leading indicators for economic data, and at least in this case they did prove prescient. In the months that followed, it was revealed that in terms of economic contraction, the UK was indeed among the worst affected countries.  As a result, while the FTSE 100 index stabilised last April from the previous month’s stock market crash, the FTSE 250 index fell further by 2%. However, because of this, the base-effect works in favour of April numbers this year, making the index’s growth appear higher. The base-effect wears off from next month onwards. But I reckon that the FTSE 250 index will continue to strengthen as economic conditions improve. What I’d buy now Even though FTSE 250 stocks have run up a fair bit in anticipation of better times already, I think there are still a number of quality UK shares available at reasonable prices.  Three I like and wrote about last week are iron-ore miner Ferrexpo, movie theatre chain Cineworld, and UK Commercial Property Real Estate Investment Trust.  Ferrexpo is unique in how low its price-to-earnings (P/E) ratio is at around 5 times, even with good prospects for industrial commodities. It is vulnerable to commodity cycles, however.  I like Cineworld for its potential when cinemas reopen. It will be positively impacted by pent-up consumer demand, though it is highly indebted. The UK Commercial Property Real Estate Investment Trust has a promising strategy. I would wait for its next results update before buying the stock if I wanted to be doubly sure, though.  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 I would pick these reopening shares 3 reasons I can make a killing with FTSE 100 stocks in 2021 This FTSE 100 income stock has fallen nearly 15% in the past year! Should I buy? UK dividends fall “at slowest pace for a year”. Are UK shares now in recovery? Rolls-Royce share price: what’s in store in the coming months? Manika Premsingh 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 FTSE 250 index is beating the FTSE 100 hands down. Here’s why appeared first on The Motley Fool UK.
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  35. Best shares to buy now: 2 FTSE 100 stocks I’m buying (30/05/2021 - The Motley Fool UK)
    I think some of the best shares to buy now are located in the FTSE 100. And I’m putting my money where my mouth is. Over the past few weeks, I have been buying three blue-chip stocks, which now form the foundations of my portfolio.  Best shares to buy now The first company on my list is Reckitt (LSE: RKT). This enterprise has reported strong sales growth during the pandemic. During the first quarter, revenue rose 4.1% on a like-for-like basis. A strong performance in the group’s hygiene division, which accounts for around 80% of revenue, helped drive overall sales higher. What’s more, thanks to increased investment in e-commerce over the past year, online sales were 24% higher. As a result, online sales now account for 13% of overall revenues.  Going forward, the company is planning to invest £2bn in research development to discover new products. I think that investment should help drive sales growth for years to come. The company is also looking for buyers for its underperforming Chinese infant child nutrition business, which has been a consistent underperformer. Based on these growth and restructuring initiatives, I have been buying the stock for my portfolio today.  One critical risk hanging over the stock is debt. At 2.4 times underlying cash profits, debt is a bit on the high side, I feel. A sudden increase in interest rates or increase in costs could impact debt affordability. This may cause problems across the company. Another risk is the possibility that the Chinese infant nutrition business does not find any buyers. That could leave the company with this struggling division.  Despite these risks and challenges, I think this FTSE 100 consumer goods business is one of the best shares to buy now. That’s why I have been adding it to my portfolio recently.  FTSE 100 growth Another stock I have been buying his FTSE 100 insurance group Admiral (LSE: ADM).  This is not the largest insurance company in the country, but it is the most efficient. It has been able to leverage technology and its understanding of customers to improve customer service and efficiency.  According to its employees, the business is also one of the best places to work in the UK.  As well as this accolade, the company is also incredibly well managed. It has recently been diversifying away from the mature UK insurance market. The group is expanding into loans and the car insurance market overseas.  Overall, I think this is one of the best shares to buy now, considering its potential. Admiral has conquered the UK insurance market. It’s now focusing its efforts overseas.  Of course, it’s unlikely to be plain sailing for the group as it tries to conquer new markets. For example, many UK businesses have struggled to enter America. Admiral may be no different. This could be the most considerable risk the company faces today. An overzealous expansion programme could lump the group with significant liabilities and costs, holding back growth.  Even after taking this risk into account, I have recently bought more of the FTSE 100 stock for my portfolio. I continue to believe this is one of the best shares to buy now, considering its growth potential.  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 shares I’d buy for large and growing dividends Will the Admiral share price reach £35? 3 of the best FTSE 100 stocks to buy today The FTSE 100 is falling: three 7% dividend yield shares I’d buy now 3 of the best cheap UK stocks to buy in an ISA! Rupert Hargreaves owns shares in Admiral Group and Reckitt. The Motley Fool UK has recommended Admiral 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 Best shares to buy now: 2 FTSE 100 stocks I’m buying appeared first on The Motley Fool UK.
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  36. Shares to buy: 2 FTSE 250 stocks I’d snap up now (14/06/2021 - The Motley Fool UK)
    The FTSE 250 index can be a source of lucrative investment opportunities. This index – which contains the largest 250 stocks on the London Stock Exchange outside the FTSE 100 – is home to many great companies that are growing rapidly. Here, I’m going to highlight two FTSE 250 shares I’d buy today. Both have momentum at present and I think there’s a good chance they’ll generate strong returns for investors over the long term. A FTSE 250 stock for the digital revolution One of my top picks in the FTSE 250 right now is Kainos (LSE: KNOS). It’s an under-the-radar UK technology company that helps governments and businesses with digital transformation (cloud computing, data management, automation, etc). Currently, it serves customers in over 20 countries. Kainos’ most recent full-year results, for the 12 months ended 31 March, were very strong. Revenue was up 31% to £235m while adjusted pre-tax profit jumped 124% to £57.1m. Diluted earnings per share came in at 36.8p, up 122% year-on-year. These results represented the 11th consecutive year of growth. This strong growth isn’t the only thing I like about this company. Another is its level of profitability. Over the last five years, return on capital employed has averaged 43%, which is very impressive. Additionally, the company has a strong balance sheet. One risk to be aware of here is that the stock’s valuation is quite high. Currently, Kainos sports a forward-looking price-to-earnings (P/E) ratio of about 38. This valuation doesn’t leave much room for error. If growth stalls, the stock’s likely to fall. Overall however, I see a lot of appeal in this FTSE 250 stock. With the shares currently experiencing a bit of a pullback, I think it’s a good time to be building a position. Another top tech stock Another FTSE 250 stock I’d buy right now is Computacenter (LSE: CCC), which operates in a similar field to Kainos. It also provides technology solutions to businesses and government organisations. Its customers include the likes of Linklaters, UBS, Hays, and Costa Coffee. Computacenter has also posted strong results. Its full-year 2020 results, posted in March, showed a 8% increase in revenue, a 47% increase in profit before tax, and a 50% increase in diluted earnings per share. Meanwhile, in a Q1 trading update posted in late April, the company said it was seeing strong demand for its services and that it expects 2021 to be another good year for profits. Like Kainos, CCC is a high-quality company. It’s highly profitable (five-year average return on capital employed of 21%) and it has a strong balance sheet. The company is also a reliable dividend payer. A risk to note here is that demand for IT solutions could potentially stall in the short term, due to the fact that many businesses brought spending forward last year during the pandemic. However, I think the overall risk/reward proposition here is attractive. At its current valuation (the P/E is under 20), I see this FTSE 250 stock as a buy. The post Shares to buy: 2 FTSE 250 stocks I’d snap up now appeared first on The Motley Fool UK. 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 dividend stocks I’d buy in June 1 FTSE 250 stock I’d buy Edward Sheldon owns shares in London Stock Exchange. The Motley Fool UK has recommended Kainos. 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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  37. FTSE 100 stocks: here’s why I’m buying these 2 growth shares (10/02/2021 - The Motley Fool UK)
    When looking for FTSE 100 stocks to add to my portfolio, I like shares that not only pay a dividend but also have growth potential. I’m looking for companies with strong brands that give them a competitive edge. Two FTSE 100 stocks that I’m thinking of adding to my portfolio are Next (LSE: NXT) and Diageo (LSE: DGE). Here, I’m going to explain my investment reasoning behind these two shares. #1 – Next While most people would run a mile from retailers in the current climate, I think Next shares have the potential to grow over the long term. It’s worth pointing out that while this FTSE 100 stock has retail stores, around 50% of its revenue even in normal times comes from online sales. This means that Next has been able to make up for lost stores revenue by selling more online in the pandemic. E-commerce is a key part of its growth strategy and I expect this to grow over the long term. This is one of the reasons why I like the idea of adding stock to my portfolio. Next also has diverse range of products, strong brands that set the company part from its competitors and overseas sales that are growing. I expect the retailer to capitalise on this international opportunity — another growth driver for the FTSE 100 stock. It’s only fair that I mention that there are risks with this stock. First, the shares aren’t cheap. Next is trading on a P/E ratio of 17x and the share price is close to all-time highs. While Next paid a dividend in 2020, there is, of course, no guarantee this will continue. The Christmas update was positive and it even forecast a reduction in its financial year-end net debt. As a long-term investor I like seeing companies that want to reduce leverage and strengthen their balance sheets. I reckon it’s worth paying for a quality company like Next and hence it could make a nice addition to my portfolio. #2 – Diageo I like Diageo as it has a strong portfolio of beverage brands. Like Next, I reckon this gives the FTSE 100 stock a competitive edge. Even Nick Train, one of the UK’s highest-profile fund managers, likes Diageo. He’s invested in the stock via his Finsbury Growth & Income Trust portfolio. Drinkers are loyal to premium brands such as those that are part of Diageo’s offering. It’s capitalising on the ‘premiumisation’ trend, where it believes consumers will pay for a higher-quality product. While there’s a risk that this trend could run out steam, so far the strategy has worked. Its growth potential makes it a possible good addition to my portfolio. I should highlight that Diageo shares aren’t cheap on a P/E of 27x. The Covid-19 pandemic has also had an impact on Diageo’s business. Lockdowns have resulted in fewer people socialising and drinking alcoholic beverages. There’s a concern that the longer the restrictions persist, the more severe the negative impact will be on Diageo’s business. Diageo has also been growing by acquiring brands and I reckon it will stick with this strategy. And while there’s no guarantee it will continue, it even managed to grow its dividend during the pandemic. For these reasons, I think Diageo could be a good addition to a diversified portfolio like mine. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading I think these are the best shares I could buy now to make money from the stock market Here’s why I think this FTSE 100 stock could be among the best shares to buy today The economy’s a mess. Here’s how I’m investing in UK shares now Why I’d buy these 2 FTSE 100 stocks after their big events 2 UK shares I’ve bought for a passive income Nadia Yaqub has no position in any of the shares mentioned. The Motley Fool UK owns shares of Next. The Motley Fool UK has recommended Diageo. 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 FTSE 100 stocks: here’s why I’m buying these 2 growth shares appeared first on The Motley Fool UK.
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  38. UK shares to buy now: my top 2 FTSE 100 stocks (09/05/2021 - The Motley Fool UK)
    Recent data continues to support the conclusion that the UK economic recovery is gaining pace. As such, I’ve been looking for UK shares to buy now for my portfolio that may profit from this recovery. Here are my two favourite FTSE 100 companies I’d buy for this purpose today. UK shares to buy now The first on my list is Segro (LSE: SGRO). The pandemic has given a shot in the arm to the e-commerce sector. And as companies’ online sales have increased, managers have rushed to find warehouse capacity to meet demand.  As one of the largest publicly-listed real estate investment trusts focusing on warehouses, I’d buy Segro to play this theme. I think its latest trading update shows the strength of the market. It saw £18m of new headline rent signed during the first quarter, up from £14.3m a year earlier. On top of this, the company has £87m of potential new headline rent from 1.3m sqm of space under construction.  I think these numbers show just how much potential the company has over the next few months and years. However, the enterprise may face some challenges along the way. It could end up over expanding, which would saddle the business with large debts and unfilled properties. The rush to develop new facilities by competitors may also impact demand for the group’s warehouses.  Despite these risks and challenges, I’d buy this FTSE 100 stock today for its income and growth potential. As the online retail market continues to expand, I think this is one of the best UK shares to buy now.  FTSE 100 stock Sticking with companies I believe will benefit from the changes that have come about due to the pandemic, I’d also buy Avast (LSE: AVST) for my portfolio.  I think this FTSE 100 cybersecurity company is one of the best UK shares to buy now because cybersecurity is one of the world’s fastest-growing sectors. Throughout the pandemic, technology has become an invaluable lifeline for many. Unfortunately, scammers have rushed to take advantage of this. Avast helps consumers protect their systems, which helped drive revenues higher by 10% year-on-year in the first quarter.  As technology plays an ever-increasing role in the world, I expect this to continue. This is the primary reason why I believe Avast is one of the best UK shares to buy now.  That’s not to say the company won’t face risks as we advance. Reputation is everything in the cybersecurity market. If Avast suffers a cyberattack, or customers start to lose confidence in the group’s software, sales could quickly go into reverse. The firm also needs to maintain research and development spending to stay ahead of attackers.  Even after taking these risks and challenges into account, I’d buy the FTSE 100 stock for my portfolio today, considering its growth potential.  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 If I could only buy one tech share, this would be it Why I’d forget the Deliveroo share price and buy these FTSE 100 shares instead Rupert Hargreaves owns no share mentioned. The Motley Fool UK has recommended Avast Plc. 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 UK shares to buy now: my top 2 FTSE 100 stocks appeared first on The Motley Fool UK.
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  39. The FTSE 100 has hit 7,000. Here are 4 reasons I think it could rise further (20/04/2021 - The Motley Fool UK)
    The FTSE 100 index zoomed past 7,000 points last week. For me, this is a key milestone. Investors have not seen this level since the pandemic began. I reckon the index could rise further from here and here are four reasons why. #1 – Coronavirus I think most would agree that the pandemic has been brutal. But I think the worst is over. There are several vaccines available and the inoculation rollout so far has been a success. There have been concerns over vaccine supply issues… and blood clot fears. But most scientists indicate that the benefits of having the jab outweigh the risks. On this basis, I think investors are looking past the peak pessimism and focusing on the world post-Covid-19. The higher number of vaccinations means that businesses can reopen and take on more staff. This means that money is likely to pour into stock markets that have been hit by the pandemic and the UK’s leading index could be one of them. I think the FTSE 100 could rise further from here. #2 – More companies This year has seen a number of companies coming to the London stock market. I have commented on a few of them. These include the likes of Moonpig, Trustpilot and more recently, Deliveroo. Companies are likely to list when optimism is high. This way a higher valuation could be obtained. This also means there’s more choice for an investor like me. I feel that as more firms list on the London Stock Exchange, investors are likely to pour more money in. This could in turn boost the value of the UK’s leading index. #3 – Positive data We can’t ignore the fact that the FTSE 100 is impacted by other global stock markets. Recent economic data from China and the US indicate that a global recovery is happening. In fact, the S&P 500 index hit a record high last week. Again, this highlights a positive sentiment. This is likely to have a knock-on effect on the FTSE 100, thereby causing it to rise from its current level. #4 – Value stocks Values stocks are typically shares that are unloved but have the potential to recover. There have been numerous companies that have been hit hard by the pandemic and could be considered as potential value stocks. Last year, tech stocks had a lot of momentum since many people were working from home. But I think in 2021, plenty of investors will be switching to value stocks instead. Some of these include energy companies and banks, which dominate the FTSE 100 index. I reckon money could be poured into these shares. Risks It’s great that the UK stock market seems to be recovering. But this also means that it could be sensitive to any negative news. Further virus variants, lockdowns or delays in the vaccine rollout could result in the FTSE 100 index falling. I’m mindful that it will not be smooth sailing and I certainly expect some volatility. But in general, I’m confident the worst is over and the UK stock market can rise further. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading 2 cheap penny stocks and 1 FTSE 100 share to buy in my ISA! 2 penny stocks to buy in a Stocks and Shares ISA today Should I buy Coinbase shares after the IPO? 2 FTSE 250 penny stocks I’d buy as the index hits new highs Is financial advice worth the money? Nadia Yaqub 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 FTSE 100 has hit 7,000. Here are 4 reasons I think it could rise further appeared first on The Motley Fool UK.
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  40. 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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  41. Stock market rally: why I’d invest money slowly in UK shares (14/02/2021 - The Motley Fool UK)
    The recent stock market rally may make it more tempting to pile into UK shares. After all, some FTSE 100 and FTSE 250 shares have surged in value over recent months. That’s because investors are increasingly looking ahead to a reopening of the economy following coronavirus. However, a strategy of buying shares slowly could prove to be more effective. It may mean an investor has scope to capitalise on volatile markets, as well as declines. It may also prevent a strategy of trying to time the stock market’s movements. With commission costs having fallen to relatively low levels in recent years for regular investment services, this could lead to more stable and attractive returns in the long run. Investing money slowly in UK shares Buying smaller amounts of UK shares regularly, instead of through a lump sum, could be a means of taking advantage of a volatile stock market. The recent stock market rally may not continue, since no market rise has ever persisted in perpetuity. Therefore, there may be opportunities to buy UK stocks at lower prices than where they trade today. Investing regularly, rather than all available capital at once, may help an investor to capitalise on such a situation. Furthermore, buying UK shares slowly may remove the temptation to try and time the market. As the last year has shown, predicting market movements is a very tough task. Especially over a short time period. As such, having a regular investment programme may mean less worrying about trying to invest at the perfect time (if there ever is such a time). This may not only lead to higher potential returns. But it may lead to more time to analyse the next investment being made instead of being concerned about how a recent investment is performing. The advantages of investing a lump sum Of course, investing slowly in UK shares can mean missing out a stock market rally. For example, an investor who purchased FTSE 100 shares at their lowest point in March 2020 may have generated higher returns that someone who invested slowly since then. In a rising market, having capital invested for a longer time period can lead to greater returns via compounding. Furthermore, even though regular investment services may have fallen in price in recent years, they could end up being more costly than a small number of trades over the long run. This point is perhaps especially pertinent for smaller investors, for whom commission costs can have a sizeable impact on their returns. Risk/reward opportunities Despite the higher potential cost of investing money slowly in UK shares, its advantages may outweigh its disadvantages. The stock market has always experienced a cycle in the past, which suggests that its recent rally may ultimately give way to a period of less attractive performance. Investing regularly, rather than using a lump sum, may provide opportunities to capitalise on this 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 I think these are some of the best FTSE shares for the 2021 stock market rally What does flood insurance cover? These FTSE 100 shares could be some of the best stocks to buy now Will the IAG share price ever return to pre-pandemic levels? Should I buy Lloyds Banking Group 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 Stock market rally: why I’d invest money slowly in UK shares appeared first on The Motley Fool UK.
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  42. FTSE 100 shares I’d buy for large and growing dividends (23/05/2021 - The Motley Fool UK)
    FTSE 100 shares are arguably still undervalued. It’s often argued UK companies remain cheap when compared to other regions of the world. A spate of recent purchases of UK-listed companies gives some credibility to this argument. A combination of value, as well as income from dividends as they recover and grow post pandemic, have brought these two FTSE 100 shares onto my radar. Cheap FTSE 100 miner Rio Tinto (LSE: RIO) is one of the world’s leading mining companies. It certainly won’t be everyone’s cup of tea on ESG grounds, but if I look past that, it’s a FTSE 100 share that strikes me as being good for income. The dividend payout has been particularly strong in recent years, with consecutive special dividends pushing up the yield. The current dividend yield is 5.2%, far above the average for the FTSE 100. Projections are the dividend could end up being more like 10%.  A weaker than expected start to 2021 is a risk I’ll keep an eye on. I think expectations for miners are high as economies reopen following the pandemic. Underperformance will likely hit the share price. Another risk is around the reputational damage caused by blowing up sacred caves in Australia. The incident has had political recriminations and led to executive replacements and a pay revolt from shareholders. Rio Tinto is certainly not a buy and forget share. The mining industry is too cyclical for that. However, for the next few years it could be a sector that produces strong and growing dividends. More evidence of a commodities supercycle, where commodities do well for an extended period of time, might encourage me to buy the shares. Steady, defensive company The insurance company Admiral (LSE: ADM) is a more defensive high-yielding FTSE 100 share. In that way, it would potentially complement the more adventurous Rio Tinto in my portfolio. Admiral has a dividend yield of 4%, slightly above the FTSE 100 average, but more importantly than that it raised its dividend by just under 44% between 2019 and 2020. That’s an impressive rate of growth for a FTSE 100-listed company. It is a strong sign of confidence from management. The insurer has a business model that provides it with income no matter what the economic backdrop is. That’s why I believe it will be able to keep paying a large, but also growing, dividend. Since lockdown, it has performed particularly well financially. The share price has also done well over at the same time. In the year to 31 December 2020, pre-tax profit from continuing operations pushed up 20% to £608.2m. The insurer also gained more customers. With earnings per share also growing year-on-year, I’m confident that Admiral is a well run company with a profitable future. Both Rio Tinto and Admiral are FTSE 100 shares that I think could perform well over the coming years. I also happen to think in my portfolio the cyclical miner and the defensive insurer could make a complementary pairing. 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 Will the Admiral share price reach £35? The FTSE 100 is falling: three 7% dividend yield shares I’d buy now Why I’d invest £5k in these FTSE 100 stocks right now! These two FTSE 100 stocks could pay £28bn in dividends for 2021! 2 FTSE 100 stocks I’d buy in May Andy Ross owns no share mentioned. The Motley Fool UK has recommended Admiral 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 FTSE 100 shares I’d buy for large and growing dividends appeared first on The Motley Fool UK.
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  43. Why this FTSE 100 stock is my contrarian pick (27/05/2021 - The Motley Fool UK)
    As large companies with mostly stable demand, FTSE 100 utilities are unlikely to qualify as contrarian stocks. But when I looked at water and wastewater services provider United Utilities (LSE: UU), it looked very much like a contrarian investment.  Here is why.  Underwhelming share price, weak results United Utilities’ share price increase over the past year is an underwhelming 13.7%. Considering that the stock markets were just coming out of a once-a-decade crash, most stocks’ prices were particularly low. And in line with that, their gains by now look significant. Not for United Utilities, however.  Additionally, its share price today, too, is slightly down after its results. For the year ending 31 March 2021, its revenue is down almost 2.8% and reported operating profit is down by 4.4%. Underlying operating profit is even more affected, down by 21%.  This is perplexing at best and disappointing at worst. To me it looked strange that a utility saw such a decline, even considering the lockdown and subsequent reduction in business demand.  There is an explanation The answer is there in the fine print. The United Utilities revenue declined not because of a fall in demand, but because of the start of a new pricing cycle. Every five years, the water regulator Ofwat sets new prices for consumers.  Because of the implementation of the new cycle from 2020 onwards, customer bills have reduced by 5.5%. This is reflected in the revenues. The fall in earnings is also explained by this as well as by increased capital spending, which is not a bad thing at all, in my view.  In the past years, United Utilities has consistently shown increased revenue, so I am not concerned because of a blip in one year. Its profits have been less consistent, but it has consistently been profitable.  It is probably this performance that explains why the stock market crash did not impact its share price for long either. While it did drop sharply in the stock market meltdown, it was already back to pre-crash levels as early as June last year. After some fluctuations for the rest of the year, it was recently back above 1,000p. These levels were last seen in February last year.    More reasons to like the FTSE 100 stock I also like that its valuation is reasonable. According to my estimates, its price-to-earnings ratio is around 18 times, lower than that of many other FTSE 100 shares.  There is more. It has a dividend yield of 4.2%, which is pretty decent according to me. It is also a good reason to buy a stock with a competitive earnings ratio, which has the potential to rise more.  There are other FTSE 100 utilities with higher dividend yields around as well, but I would consider this seeming contrarian pick too.  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 FTSE 100 dividend stocks to buy 3 UK income shares I’d buy Manika Premsingh 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 Why this FTSE 100 stock is my contrarian pick appeared first on The Motley Fool UK.
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  44. How I’d invest my first £1k in UK shares (13/06/2021 - The Motley Fool UK)
    The stock market can be a daunting place for first-time investors. There are 100 blue-chip UK shares in the FTSE 100 and a further 250 companies in FTSE 250. On top of these, there are around 600 stocks that make up the FTSE All-Share. This index includes both the FTSE 100 and FTSE 250. But that’s just a section of the market. In total, there are more than 2,000 stocks listed in London. That excludes investment funds. With so many options to choose from, it can be almost impossible for beginners to decide where to start.  So if I had £1,000 to make my first investment in UK shares, I’d keep things simple. Rather than trying to find stocks to buy in the FTSE All-Share, I’d stick to the FTSE 100.  UK shares to buy  The highly successful investor and fund manager Peter Lynch suggests investors should only buy stocks in businesses they’re familiar with. As such, I’d only buy FTSE 100 stocks for my portfolio of UK shares that are household names.  The first stock I’d buy is BT. I’m excited about the outlook for this telecoms giant. As the firm invests more in its operations and builds out its fibre broadband network, I reckon earnings will return to growth. This growth could support a substantial dividend from the business, although there’s no guarantee this will happen.  Another household name I’d buy for my portfolio of UK shares is Royal Mail. This company has benefited from a surge in demand for its parcel delivery services over the past 12 months. The enterprise is planning to use these windfall profits to invest in its operations, which is the right choice, in my view. By reinvesting profits, the firm can build on last year’s expansion, and that may translate into earnings growth in the years ahead. The investment could also help the company compete more effectively with competitors, which are constantly nipping at its heels. This is the most significant challenge the enterprise faces right now.  Another household name I’d buy for my portfolio is Just Eat Takeaway. This is one of the handful of tech shares in the FTSE 100. Like Royal Mail, the company experienced strong growth last year as the pandemic confined consumers to their homes. The group now plans to use its own windfall profits to improve awareness of its brand. However, this may not lead to growth as its deep-pocketed competitors, such as Uber Eats, are also doing the same. Diversified portfolio By acquiring the three UK shares outlined above, I think I can build a well-diversified portfolio across different sectors. All three companies are also experiencing strong growth and have plans to increase their footprints in the months and years ahead. When coupled with the UK economic recovery, I think these twin tailwinds could lead to solid returns.  However, investing in equities can be risky, so this strategy might not suit all investors. Especially considering the risks facing these particular businesses. The post How I’d invest my first £1k in UK shares appeared first on The Motley Fool UK. 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 UK shares to buy: 1 stock I’d acquire today How Warren Buffett’s advice could help me invest £1k How I’d invest £5k in cheap UK dividend shares Penny stocks: 3 UK shares I’d buy now Bargain or bust: will the Petrofac share price bounce back? Rupert Hargreaves owns no share mentioned. The Motley Fool UK has recommended Just Eat Takeaway.com N.V. 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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  45. 3 FTSE 100 shares from my best stocks to buy now list (13/02/2021 - The Motley Fool UK)
    Many FTSE 100 shares have experienced very challenging operating conditions over the last year. The coronavirus pandemic has caused major disruption in a range of industries. And that may continue for many months, or even years, in some cases. While there’s never any guarantee of a recovery, companies operating in those sectors could provide scope for capital gains over the long run. Their low valuations, the prospect of a global economic recovery, and the potential for a stock market rally may mean they’re among the best shares to buy now. With that in mind, here are three FTSE 100 companies that could be among those businesses. They may offer capital appreciation over the long run from their current price levels. FTSE 100 shares with long-term recovery potential Shell has experienced difficult operating conditions that have held back its stock market performance versus other FTSE 100 shares. However, its plans to refocus its operations on renewable energy could lead to a more sustainable and growing bottom line. Certainly, it will take a large amount of investment to move from fossil fuels to low-carbon assets. However, Shell appears to have the balance sheet and profit potential in oil and gas to deliver on its ambitions. NatWest may also offer improving share price prospects. Its operating environment is expected to remain difficult due to low interest rates and a tough economic outlook. However, with the UK economy forecast to return to positive growth this year, its financial performance may experience a lift. Furthermore, NatWest’s forward price-to-earnings (P/E) ratio of 10 suggests it offers a wide margin of safety at the present time. Whitbread could also offer recovery prospects versus other FTSE 100 shares. The hotel and restaurant operator has faced major disruption in the last year due to the closing of its premises. This has put pressure on its financial position. But its cost reductions and capital raising could mean it’s better placed to capitalise on a long-term recovery versus sector peers. Its international growth potential may also catalyse its stock price. Building a portfolio of the best shares to buy now Clearly, it takes more than three FTSE 100 shares to build a portfolio that can deliver relatively resilient growth over the long run. A concentrated portfolio can lead to high company-specific risk. This is when the threat of one or more companies negatively impacts on the performance of an entire portfolio. As such, diversifying across a multitude of companies can be a means of reducing, but not eliminating, risks when buying shares. A stock market recovery can never be guaranteed. But the improving prospects for the economy suggest that companies facing disruption today could generate relatively high returns in the long run. As such, the likes of Whitbread, Shell and NatWest could be among the best shares to buy 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 10 best UK shares I’d buy to earn a reliable passive income Argo Blockchain shares: here’s what I’m doing 1 UK share I’d buy and hold for the next 10 years I think these are 3 of the best UK shares I could buy this decade! 1 UK growth stock powering electric vehicles worldwide Peter Stephens owns shares of Royal Dutch Shell B, NatWest and Whitbread. 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 FTSE 100 shares from my best stocks to buy now list appeared first on The Motley Fool UK.
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  46. Can someone explain what is happening with my High Tide Stock (17/05/2021 - Reddit Stocks)
    I have 300 shares of HITIF which I bought and hold through TD. Last week the stock code disappeared and displayed as random numbers and letters and TD showed my stock as a total loss but has no data on anything else. It still shows I own 300 shares. I know HITI took a big step into getting listed on NASDAQ and went into consolidation. The way it was explained to me is that every 8 shares you own you get 1 in return after consolidation. A friend of mine uses another trading service (fidelity) I think and he said in Sunday his listing displayed as normal. On TD it still shows as a total loss and random numbers/letters for the stock code. So do I need to be patient? Did I lose all my shares? What is going on here?   submitted by   /u/Jordan_1424 [link]   [comments]
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  47. Potential Gains for Stocks with High Short Interest (12/06/2021 - Reddit Stocks)
    I’m just a big dumb idiot, but I keep thinking about what implications there are for a stock that starts doing well but has high short interest. I have an analogy and I’m hoping someone can show me where I’m wrong. Entity A sells a stock short at $10 a share. The stock goes down Entity B then sells a stock short at $9 a share. The stock goes down Entity C then sells the stock short at $8 a share. The stock goes down. A bunch of idiots buy and hold the stock. The stock goes to $8.50. After a few months, Entity C figures that they’re not going to turn a profit and buys stock to close out their positions. The stock goes to 9.50 after some volatility. Entity B sees that the stock will hover around 9.50. They close out their positions and the stock goes to 10.50 Entity C does the same thing. The stock rises. Which part have I missed something? I have 19 shares of CLOV at $10.17 average and 10 shares of WKHS at $15 average. Basically nothing.   submitted by   /u/bartholomew314159 [link]   [comments]
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  48. Stock market recovery: I’d invest in these 2 FTSE 100 shares today (28/02/2021 - The Motley Fool UK)
    After a decline in March 2020, UK shares have bounced back remarkably in the months since the first onset of the Covid-19 pandemic. Since that initial dip many companies have gained as part of a stock market recovery. Primary UK stock index, the FTSE 100, has gained more than 30% since its low of 4,993p on 23 March last year, as optimism around vaccination programmes drives the latest stock market rally.  While there may be a correction ahead in the index in response to the recovery, I think there are still some great value UK shares which I would add to my portfolio. Bag a bargain Discount retailer B&M European Value Retail (LSE:BME) has been one of the stocks that has gained handsomely throughout the pandemic. The group was boosted by being classified as a retailer of essential goods, as well as the fact that many of its stores are located in retail parks as opposed to the high street. The company reported better performance than had been expected for its fiscal third quarter. This led B&M to narrow its guidance for full-year earnings to the higher end of £540m–£570m. That was in addition to announcing a special dividend payout of £200m in January. While I am bullish on the shares amid the current stock market recovery, the shares are already up 60% in the last 12 months and could potentially be past their peak.  The share price has dipped this week, potentially in response to the UK government’s plan to reopen many parts of the economy, including high street retailers which have been forced to close. The group can also be open to rising inflation as its margins can be narrowed by distribution costs.  Despite those risks, I’d still add B&M shares to my portfolio today. Vaccine rollout Another FTSE 100 which could benefit in the long term following this stock market recovery is Covid-19 vaccine manufacturer AstraZeneca (LSE:AZN). The pharmaceutical giant’s share price has disappointed over the last year, despite the company leading the way in the production of the vaccine. While the FTSE 100 has gained 7% in the last six months, AstraZeneca shares have declined almost 17%. The last year has shown just how important the healthcare market is to the global economy, and I see AstraZeneca as being a key part of that market for many years. While there is a plan to reopen the economy as the vaccine rollout starts to take effect, regular boosters are likely to be needed for years afterwards. While the company is selling the vaccine at cost price, I think its other products will be able to grow profits in years to come. Some of its cancer treatments have the potential to become $1trn businesses and I see an increased focus on health and wellbeing on a global scale in the years to come. On the downside, the pharma giant’s ongoing row with the EU over vaccine supply has not been a good look for the company.  The share price has also not been helped by the rise in value of sterling, as AstraZeneca reports its results in dollars. The company’s dividend payouts have also not grown in a number of years. However, I’d still add AstraZeneca to my ‘buy’ list at the moment, as the shares appear undervalued to me at the current price of 6,935p. One stock for a post-Covid world… Covid-19 is ripping the investment world in two… Some companies have seen exploding cash-flows, soaring valuations and record results… …Others are scrimping and suffering. Entire industries look to be going extinct. Such world-changing events may only happen once in a lifetime. And it seems there’s no middle ground. Financially, you’ll want to learn how to get positioned on the winning side. That’s why our expert analysts have put together this special report. If the pandemic has completely changed our lives forever, then they believe that this stock, hidden inside the tech-heavy NASDAQ, could be set for monstrous gains… Click here to claim your copy now — and we’ll tell you the name of this US stock… free of charge! More reading A popular FTSE 100 stock: would I buy shares in this company today? Shares to buy now: why I’d consider Lloyds Banking Group alongside this FTSE 100 stock AstraZeneca share price: is this FTSE 100 growth stock now a top ‘dip buy’? Three UK shares to buy today 2 of the best shares to buy now conorcoyle has no position in any of the shares mentioned. The Motley Fool UK has recommended B&M European Value. 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: I’d invest in these 2 FTSE 100 shares today appeared first on The Motley Fool UK.
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  49. WTF on Dorman (03/05/2021 - Reddit Stock Market)
    I have a question I'm hoping anyone out there can answer. I bought Dorman after their earnings call, and the stock had already taken it's dive, didn't hit the bottom, but I was close. Anyway my question is this morning pre-market 63 shares had traded hands, and the stock was down a $1.18, then 5 minutes after the market opened this morning, 1235 shares had traded hands, and the stock was up .88 cents. My question is what would cause such volatile swings like this? I mean there are 32.1 million shares out, how can such a low volume cause the price to move like that? It is not the first time I've notice it on this stock, so I figure I must be missing something.   submitted by   /u/dkstang67 [link]   [comments]
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  50. Stock market rally: is the FTSE 100 a bubble set to burst? (19/04/2021 - The Motley Fool UK)
    The stock market rally is a wonder to behold, with the FTSE 100 rebounding 2,000 points from its low of just below 5,000 on 23 March last year. Right now, it is trading at 7,019 points, rewarding those who screwed up their courage and bought at last year’s lows. History shows that buying shares in the middle of a market crash is a terrific strategy. The stock market will rally, given time. All you have to do is be patient and wait for it to happen. That said, none but the brave invested in March last year, when the first lockdown had been imposed and global markets were in meltdown. Outright disaster was only averted because central bankers, led by the US Federal Reserve, stepped in with unprecedented stimulus. FTSE 100 has broken through 7,000! That restored liquidity and confidence, and helped drive the stock market rally. The FTSE 100 is up a thumping 40% since then. In the US, the S&P 500 is trading at an all-time high. It seems incredible, given the year we’ve had, so could it all end in a crash? The obvious, easy answer is yes. Stock markets can always crash, at any time. It’s what they do. Regularly. Investors can get in a tizzy when it happens, but it’s perfectly normal. Looking back, history shows the stock market will typically rally after a crash. Sentiment is cyclical, too. Many are wary right now. They will see the FTSE 100 surging through 7,000 as a sign that we’re in a bubble, and it’s ready to burst. My view is that round numbers don’t matter at all. It’s human nature to look out for benchmarks, or breakthroughs, or psychological barriers, but they are meaningless. If the FTSE 100 fell below 7,000 tomorrow, that wouldn’t suddenly make it a worse place to keep my money. Investors need to ignore short-term stock market rallies and crashes, and look to the long term instead. If you do that, you will see that the trajectory is broadly upwards, albeit with heaps of volatility along the way. The stock market rally could continue. Or stop Nobody can predict when the FTSE 100 will break through 8,000 or 9,000, or whether it will plunge back towards 5,000. We simply do not have that information. So here’s my strategy. First, I invest for the long term. To retirement and beyond! Any money I put into shares will be there for at least 15 years, preferably twice as long. During such a lengthy period I will see many a stock market rally, and many a crash. I won’t get excited about either. I have to add one proviso here. When stock markets do crash, that’s when I go looking to buy shares, before they rally again. It may sound counterintuitive, but this is when you find the best bargains. I am also hunting for bargains during today’s stock market rally, because there are still plenty of undervalued shares out there.  Here’s where I’d start. 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 The Manchester United share price soars 10%! Is now the time to buy? Why I’d forget the Lloyds share price and buy this UK bank share! With the FTSE 100 near 7,000, here’s why I’d invest in a tracker right now Deliveroo and Coinbase shares: what investors can learn from launches FTSE 100 hits 7,000: here’s what I’m doing now 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 Stock market rally: is the FTSE 100 a bubble set to burst? appeared first on The Motley Fool UK.
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