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16 June 2021
09:08 hour

The Tullow Oil share price is back above 60p. Here’s why I’m still not keen

The Motley Fool UK

10/06/2021 - 17:55

Even with several positive news stories out recently, Jonathan Smith thinks the longer-term direction of the Tullow Oil share price is lower, not higher. The post The Tullow Oil share price is back above 60p. Here’s why I’m still not keen appeared first on The Motley Fool UK.


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  1. Tullow Oil shares are up 65% in 2021! Could they get back to 100p this year? (06/04/2021 - The Motley Fool UK)
    Tullow Oil (LSE:TLW) shares have been on a rocky road over the past couple of years. The trend has been downwards, due to several reasons and as the share price moves lower, any bounce (when put in percentage terms) can be slightly misleading. For example, as my Foolish colleague Rupert Hargreaves flagged up, technically Tullow Oil shares are up 550% over 12 months. Yet on an actual basis, the shares are trading at only around 49p, a far cry from levels seen in 2019 of 200p+.  Why have Tullow Oil shares fallen? Before I talk about the strong year-to-date performance, I need to talk through the negative news from last year. Firstly, the stock market crash hit most shares hard in March. As Tullow Oil is seen as a high-risk stock due to the nature of the oil exploration business, investors were keen to sell out.  Add to the mix the fall in the price of oil (briefly going negative) and Tullow Oil shares continued to tumble. After all, if the selling price of the main product is worthless, then it makes it hard for the business to survive. Fortunately, the oil price did rally back quickly, but not before damage was done. Incredibly, Tullow Oil shares actually traded down to around 9p at the lows during last year. Company-specific issues were in play as well. The large net debt the business has is a logical cause for concern. At the end of 2020, net debt stood a $2.4bn, even with a $575m injection following the completion of a Ugandan asset sale to Total in November. Tullow Oil shares might be up a lot in percentage terms over the past year, but as the above shows, it doesn’t tell the full story. Over a two-year period, the share price is down over 80%. I think this timeframe more accurately depicts the trend. Can the share price reach 100p? Year-to-date, the shares are up 65%, making it one of the best performers in the FTSE 250. The shares benefited from its full-year 2020 results. Although the figures didn’t make for great reading, the outlook was positive. The CEO commented that “we have transformed our cost base, implemented rigorous capital discipline and are well placed to benefit from higher oil prices”. I think Tullow Oil shares could continue to move higher due to the above outlook. The capital discipline (including debt levels and capex) is a key element in my opinion. If this is made more sustainable this year, it should give confidence for more investors to buy in. Another 10-20% rally is potentially there, but personally I don’t see 100p as a realistic level to hit in 2021. This would need to see the share price double. The share price has already had such a large move over the past year. Therefore I don’t think it’s the bargain currently that it was at 9p. If I wanted some exposure to a commodity company, I’d much rather buy into Greatland Gold instead, for reasons I explain here. 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 This is what I’m doing about the Tullow Oil share price right now! The Tullow Oil share price has jumped 550%! Have I missed the boat? Will the Tullow Oil share price recover in 2021? The Tullow Oil share price is on a tear. Is this penny stock a buy for me now? Tullow Oil’s share price rises after FY results. This is what I’d do now jonathansmith1 has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Tullow Oil shares are up 65% in 2021! Could they get back to 100p this year? appeared first on The Motley Fool UK.
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  2. Tullow Oil shares are up 65% in 2021! Could they get back to 100p this year? (06/04/2021 - The Motley Fool UK)
    Tullow Oil (LSE:TLW) shares have been on a rocky road over the past couple of years. The trend has been downwards, due to several reasons and as the share price moves lower, any bounce (when put in percentage terms) can be slightly misleading. For example, as my Foolish colleague Rupert Hargreaves flagged up, technically Tullow Oil shares are up 550% over 12 months. Yet on an actual basis, the shares are trading at only around 49p, a far cry from levels seen in 2019 of 200p+.  Why have Tullow Oil shares fallen? Before I talk about the strong year-to-date performance, I need to talk through the negative news from last year. Firstly, the stock market crash hit most shares hard in March. As Tullow Oil is seen as a high-risk stock due to the nature of the oil exploration business, investors were keen to sell out.  Add to the mix the fall in the price of oil (briefly going negative) and Tullow Oil shares continued to tumble. After all, if the selling price of the main product is worthless, then it makes it hard for the business to survive. Fortunately, the oil price did rally back quickly, but not before damage was done. Incredibly, Tullow Oil shares actually traded down to around 9p at the lows during last year. Company-specific issues were in play as well. The large net debt the business has is a logical cause for concern. At the end of 2020, net debt stood a $2.4bn, even with a $575m injection following the completion of a Ugandan asset sale to Total in November. Tullow Oil shares might be up a lot in percentage terms over the past year, but as the above shows, it doesn’t tell the full story. Over a two-year period, the share price is down over 80%. I think this timeframe more accurately depicts the trend. Can the share price reach 100p? Year-to-date, the shares are up 65%, making it one of the best performers in the FTSE 250. The shares benefited from its full-year 2020 results. Although the figures didn’t make for great reading, the outlook was positive. The CEO commented that “we have transformed our cost base, implemented rigorous capital discipline and are well placed to benefit from higher oil prices”. I think Tullow Oil shares could continue to move higher due to the above outlook. The capital discipline (including debt levels and capex) is a key element in my opinion. If this is made more sustainable this year, it should give confidence for more investors to buy in. Another 10-20% rally is potentially there, but personally I don’t see 100p as a realistic level to hit in 2021. This would need to see the share price double. The share price has already had such a large move over the past year. Therefore I don’t think it’s the bargain currently that it was at 9p. If I wanted some exposure to a commodity company, I’d much rather buy into Greatland Gold instead, for reasons I explain here. 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 This is what I’m doing about the Tullow Oil share price right now! The Tullow Oil share price has jumped 550%! Have I missed the boat? Will the Tullow Oil share price recover in 2021? The Tullow Oil share price is on a tear. Is this penny stock a buy for me now? Tullow Oil’s share price rises after FY results. This is what I’d do now jonathansmith1 has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Tullow Oil shares are up 65% in 2021! Could they get back to 100p this year? appeared first on The Motley Fool UK.
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  3. This is what I’m doing about the Tullow Oil share price right now! (23/03/2021 - The Motley Fool UK)
    It’s been an eventful fortnight in the life of the Tullow Oil (LSE: TLW) share price. Since sweeping to 14-month highs close to 61p per share in mid-March the oil stock has experienced heavy selling. It was last trading at 48p per share. Tullow Oil’s share price spiked to those aforementioned peaks as Brent oil prices rocketed. It stands to reason then that the oilie’s slumped as black gold prices have stepped back again. After rising close to $70 per barrel — its most expensive since May 2019 — the crude benchmark is back trading around $62. Is this a temporary setback for the Tullow Oil share price recovery? Or will this FTSE 250 stock keep on tanking? Bear  There are several factors that could keep Tullow Oil’s share price on the back foot: #1: Rising oil demand fears. In the near term at least the outlook for Brent values can be described as bleak. The benchmark’s recent reversal reflects the tightening of Covid-19 lockdowns in parts of Europe and vaccine rollout problems on the continent. Sellers are fearing that new restrictions will hit oil demand hard in the short-to-medium term. The rapid spread of virus variants across swathes of the US threaten to keep Brent prices on the back foot, too, and with it the Tullow Oil share price. #2: Fresh production problems. Mass production of any natural resource is replete with danger. Exploration results can often disappoint and the complexities of commodity excavation can cause havoc to production levels too. Tullow Oil itself has been no stranger to problems on this front as my colleague Zaven Boyrazian recently explained. #3: Balance sheet pressure keeps building. Free cash flow improved in 2020 and total net debt levels at Tullow fell. But don’t be mistaken: the oil stock’s balance sheet remains under considerable strain. Gearing (a measure of debt to equity) actually rose to three times last year, from two times in 2019. Why Tullow’s share price could rebound That said, there are several reasons why the Tullow Oil share price could zip higher again soon. Naturally, an improvement in the Covid-19 crisis would push up Brent prices again and with it the value of this UK share’s stock. There’s also the possibility that the OPEC+ group of oil-producing nations will keep announcing production curbs to support crude prices. And there’s the fact that Tullow Oil hopes heavy investment in its West African assets will deliver meaty profits growth from next year. It says that this robust investment on “cash generative producing assets” is anticipated “to increase production in 2022 and sustain it for the longer term”. That said, I’m not convinced that the Tullow Oil share price will break out of its tailspin soon. I’m concerned about the implications of a prolonged Covid-19 battle on oil demand and on the company’s fragile balance sheet, plus the growing use of renewable energy sources on the company’s long-term picture too. I’d much rather buy other UK shares right now. “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 The Tullow Oil share price has jumped 550%! Have I missed the boat? Will the Tullow Oil share price recover in 2021? The Tullow Oil share price is on a tear. Is this penny stock a buy for me now? Tullow Oil’s share price rises after FY results. This is what I’d do now The Tullow Oil share price vs the PMO share price: which stock should I buy? Royston Wild 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 This is what I’m doing about the Tullow Oil share price right now! appeared first on The Motley Fool UK.
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  4. The Tullow Oil share price is on a tear. Is this penny stock a buy for me now? (13/03/2021 - The Motley Fool UK)
    The oil and gas exploration and production company Tullow Oil (LSE: TLW) has seen some impressive gains recently. The Tullow Oil share price is up by almost eight times from last year’s lows.  While the stock market rally of last November helped it up, the Tullow Oil share price has gained in a big way only in the last six weeks or so. It has more than doubled in this time.  Still, TLW is a penny stock with a share price of 60p as I write. It was at four times these levels just two years ago. The question that now comes to my mind is this — can the Tullow Oil share price actually go back up to its past levels? Positives for the Tullow Oil share price I think there are at least two positive developments that support the possibility that TLW can rise further.  First, consider its latest 2020 full-year results released earlier this week. TLW’s revenue took a hit, but that was to be expected in the year of Covid-19. Its gross profits fell too, but I like that it has remained profitable. Also, its net loss narrowed this year. Its free cash flow situation has improved too, because of asset sales. Its debt levels declined as well.  Second, the Tullow Oil share price has benefited from rising oil prices. From last November to now, the price of Brent crude has almost doubled to around $70 a barrel at present. For oil companies that were languishing from travel bans through the past year, this shows a swift turnaround in fortunes. TLW expects to see improved financials in 2021 because of this trend. This can give further momentum to TLW. Risks to the Tullow Oil share price But there are serious risks to an investment in TLW.  First, despite a contraction in its debt levels, TLW’s gearing has risen to three times from two times last year. Gearing is its net debt as a proportion of its profits. It is hopeful that it will improve its debt situation this year. But it also talks about potential financing challenges further in 2021 in its update. I would be careful about this aspect.  Two, over the long term I am not sure whether either the Tullow Oil share price or indeed that of any other oil company’s share price can sustain high levels. FTSE 100 oil biggies like BP and Royal Dutch Shell are pivoting to green energy sources foreseeing structural changes.  When market conditions are unfavourable, it is particularly difficult to grow. TLW has been on shaky grounds even when oil demand has been relatively robust. It is possible that TLW can set itself up quite well by the time oil demand starts falling for good, but its numbers so far are not encouraging.  The takeaway On balance, I think TLW can rise on the back of investor optimism about the return of consumer demand and rising oil prices, but over the long term I will buy the share only if I am convinced of its finances.  The high-calibre small-cap stock flying under the City’s radar Adventurous investors like you won’t want to miss out on what could be a truly astonishing opportunity… You see, over the past three years, this AIM-listed company has been quietly powering ahead… rewarding its shareholders with generous share price growth thanks to a carefully orchestrated ‘buy and build’ strategy. And with a first-class management team at the helm, a proven, well-executed business model, plus market-leading positions in high-margin, niche products… our analysts believe there’s still plenty more potential growth in the pipeline. Here’s your chance to discover exactly what has got our Motley Fool UK investment team all hot-under-the-collar about this tiny £350+ million enterprise… inside a specially prepared free investment report. But here’s the really exciting part… right now, we believe many UK investors have quite simply never heard of this company before! Click here to claim your copy of this special investment report — and we’ll tell you the name of this Top Small-Cap Stock… free of charge! More reading Tullow Oil’s share price rises after FY results. This is what I’d do now The Tullow Oil share price vs the PMO share price: which stock should I buy? Manika Premsingh owns shares of BP and Royal Dutch Shell B. 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 Tullow Oil share price is on a tear. Is this penny stock a buy for me now? appeared first on The Motley Fool UK.
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  5. The Tullow Oil share price has jumped 550%! Have I missed the boat? (18/03/2021 - The Motley Fool UK)
    The Tullow Oil (LSE: TLW) share price has jumped 550% over the past 12 months. At first, this performance looks incredible, but it’s a bit misleading. This time last year, the initial pandemic shockwaves were reverberating around the world. Asset values were plunging, and investors were dumping stocks, bonds and commodities. Shares in Tullow didn’t escape the sell-off. At one point, the stock was changing hands at just 9p. Since then, as the outlook for the global economy has improved, the Tullow Oil share price has recovered. But even after this performance, it’s still trading nearly 80% below its five-year high of 278p. As such, I think the stock could have further to run. Today, I’m going to explain why.  The outlook for the Tullow Oil share price As an oil producer, Tullow’s long-term outlook is linked to the price of its product. One of the most common ways of valuing any business is to look at its potential to generate cash over the long term. By estimating how much cash the company can generate over the next five-10 years, analysts can determine how much the stock’s worth today. This method is called a discount cash flow analysis.  Since the end of April last year, the price of Brent crude oil has increased from just under $10 a barrel to nearly $70. Therefore, a simple back-of-the-envelope calculation suggests Tullow is far more profitable today than it was at the beginning of last year. This therefore implies a discounted cash flow analysis will tell us the company is worth significantly more today than at the beginning of 2020.  Of course, this method isn’t perfect. There are a multiple of other factors to consider. For example, Tullow hedges its oil production. This provides some insulation against oil price volatility, although it does come at a cost. Other factors to consider include the company’s cost of production, capital spending outlay and debt costs.  Debt reduction  Despite these challenges and risks, the overriding conclusion from higher oil prices is that the Tullow Oil share price is also worth more today than it was this time last year. What’s more, if oil prices stay where they are, the company’s valuation could increase future as Tullow would be able to use its excess profits to reduce debt. Companies with high levels of debt tend to have lower valuations because they’re riskier investments. If Tullow can reduce its borrowings meaningfully, investor sentiment towards the business could improve dramatically. That’s assuming creditors don’t lose patience with the business. If they do, they may pull the rug out from under the enterprise. That would leave Tullow gasping for air and could result in its collapse. If this trend of a rising share price linked to a surging price of oil continues, I think the company’s outlook will only improve. So, despite the speculative risks facing the business, I’d buy the stock for my portfolio today. The high-calibre small-cap stock flying under the City’s radar Adventurous investors like you won’t want to miss out on what could be a truly astonishing opportunity… You see, over the past three years, this AIM-listed company has been quietly powering ahead… rewarding its shareholders with generous share price growth thanks to a carefully orchestrated ‘buy and build’ strategy. And with a first-class management team at the helm, a proven, well-executed business model, plus market-leading positions in high-margin, niche products… our analysts believe there’s still plenty more potential growth in the pipeline. Here’s your chance to discover exactly what has got our Motley Fool UK investment team all hot-under-the-collar about this tiny £350+ million enterprise… inside a specially prepared free investment report. But here’s the really exciting part… right now, we believe many UK investors have quite simply never heard of this company before! Click here to claim your copy of this special investment report — and we’ll tell you the name of this Top Small-Cap Stock… free of charge! More reading Will the Tullow Oil share price recover in 2021? The Tullow Oil share price is on a tear. Is this penny stock a buy for me now? Tullow Oil’s share price rises after FY results. This is what I’d do now The Tullow Oil share price vs the PMO share price: which stock should I buy? Rupert Hargreaves 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 The Tullow Oil share price has jumped 550%! Have I missed the boat? appeared first on The Motley Fool UK.
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  6. The Tullow Oil share price vs the PMO share price: which stock should I buy? (27/02/2021 - The Motley Fool UK)
    The price of oil has risen steadily over the past 12 months. It’s now trading closer to its pre-pandemic level than at any point since the beginning of last year. And with that being the case, I’ve recently been reviewing oil shares, which could benefit from rising oil and gas prices. I believe that opportunities such as the Tullow Oil (LSE: TLW) share price and PMO (LSE: PMO) share price may have strong potential as we advance.  Reviewing the Tullow Oil share price  The past 12 months have been incredibly challenging for Tullow Oil. The low oil price has wreaked havoc with the group’s profitability and balance sheet. Management has been working flat out to keep the business alive. So far, it seems as if it has succeeded. The rising oil price may also benefit the firm in discussions with creditors. Those creditors are more likely to give the company breathing space if they can see its profits are forecast to increase.  If the price of oil continues to increase, Tullow’s future outlook could improve. That’s a big if though. The price of black gold has been incredibly volatile over the past 12 months, and just because it has been rising recently does not mean that it will continue to do so. Therefore, this investment may not be suitable for everyone. Another price decline could cause the Tullow Oil share price to plunge.  Still, I’m comfortable with the level of risk involved here. That’s why I would buy Tullow Oil as a recovery play.  PMO share price risks  Unfortunately, I’m not as optimistic about the outlook for the PMO share price.  Unlike its peer, which has a solid track record of exploration and production success, PMO’s track record is a bit weaker. The company has been struggling with high debt levels and production costs for years.  These issues came to a head in 2020. Luckily, the firm managed to find a buyer. In October, the PMO share price jumped as it unveiled a merger with private equity-backed Chrysaor. Premier will start trading under its new name, Harbour Energy Plc, at the beginning of April.  This deal has not improved investor sentiment towards the company. The stock has underperformed the Tullow Oil share price by 85% over the past year.  And while PMO’s outlook is improving, thanks to the rising oil price, I think the business still faces some enormous challenges. The merger will allow the enlarged group to reduce costs and improve its balance sheet, but it will always be held hostage by the oil price. This only adds to the uncertainty. PMO will get a fresh start as Harbour in April, but what happens after that is impossible to tell.  Therefore, I would avoid the PMO share price for the time being. I think the Tullow Oil share price could be the better option considering the group’s improving outlook.  The high-calibre small-cap stock flying under the City’s radar Adventurous investors like you won’t want to miss out on what could be a truly astonishing opportunity… You see, over the past three years, this AIM-listed company has been quietly powering ahead… rewarding its shareholders with generous share price growth thanks to a carefully orchestrated ‘buy and build’ strategy. And with a first-class management team at the helm, a proven, well-executed business model, plus market-leading positions in high-margin, niche products… our analysts believe there’s still plenty more potential growth in the pipeline. Here’s your chance to discover exactly what has got our Motley Fool UK investment team all hot-under-the-collar about this tiny £350+ million enterprise… inside a specially prepared free investment report. But here’s the really exciting part… right now, we believe many UK investors have quite simply never heard of this company before! Click here to claim your copy of this special investment report — and we’ll tell you the name of this Top Small-Cap Stock… free of charge! More reading The 3 best oil stocks to buy right now This is why the Tullow Oil share price has sunk 11%! Rupert Hargreaves has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post The Tullow Oil share price vs the PMO share price: which stock should I buy? appeared first on The Motley Fool UK.
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  7. Will the Tullow Oil share price recover in 2021? (16/03/2021 - The Motley Fool UK)
    The Tullow Oil (LSE:TLW) share price has been on fire these past 12 months, increasing from 11p all the way to 57.5p today. That’s a rise of over 400%! Is this a sign that the stock is finally recovering from its mishaps of 2019? And should I be adding the business to my portfolio? Let’s take a look. Why did the Tullow Oil share price crash in 2019? Tullow Oil is an exploration and production company for crude oil. Its share price suffered a major hit towards the end of 2019 that was only exacerbated by the pandemic. So what happened? This seems to be a classic case of over-expectations by the management team. In the months leading up to the share price crash, the company had been hyping up two new oil fields in Guyana. What was supposed to be a dream discovery that would re-risk the petroleum system in the area quickly turned into a nightmare. After further analysis, Tullow Oil discovered that both sites were contaminated with heavy oil. Why does that matter? Heavy oil is a highly viscous material, meaning it cannot easily flow to production wells under normal conditions. Therefore, drilling and extracting the tar-like substance is exceptionally difficult, which questions the financial viability of both these sites. Then the pandemic created significant disruption for the entire oil industry and triggered a sharp decline in oil prices. Combining that with the heavy oil discovery resulted in the Tullow Oil share price plummeting by 95% between October 2019 and March 2020 – the largest drop in over two decades. The road to recovery In its 2020 full-year results, the pandemic’s impact on the business was made pretty clear. Total revenue fell by 19%, and the company reported a loss of $1.22bn. What’s more, due to a planned shutdown at one of its main sites, the total production forecast for 2021 fell to between 60,000 and 66,000 barrels for 2021. By comparison, 74,900 barrels were produced in 2020. But there’s reason to be optimistic about the future. The reported loss wasn’t as big as 2019’s $1.69bn, and the firm’s debt levels are falling thanks to ongoing negotiations with its creditors. Also, oil prices are now back to nearly $70/barrel as travel restrictions are beginning to ease. And the management team has noted that its assets in West Africa are expected to significantly boost production as of 2022.  Overall, this is undoubtedly good news for Tullow Oil, and consequently, its share price has returned to pre-pandemic levels. However, there is still a long way to go before completely recovering. The bottom line Personally, I think the Tullow Oil share price is already on track to return to 2019 levels. But due to the reduced production forecasts, this recovery will likely be a multi-year process. For now, I’m going to wait and see how things develop throughout 2021, so I’m not adding the stock to my portfolio today. Especially when there is another growth stock that looks far more promising… A Top Share with Enormous Growth Potential Savvy investors like you won’t want to miss out on this timely opportunity… Here’s your chance to discover exactly what has got our Motley Fool UK analyst all fired up about this ‘pure-play’ online business (yes, despite the pandemic!). Not only does this company enjoy a dominant market-leading position… But its capital-light, highly scalable business model has previously helped it deliver consistently high sales, astounding near-70% margins, and rising shareholder returns … in fact, in 2019 it returned a whopping £150m+ to shareholders in dividends and buybacks! And here’s the really exciting part… While COVID-19 may have thrown the company a curveball, management have acted swiftly to ensure this business is as well placed as it can be to ride out the current period of uncertainty… in fact, our analyst believes it should come roaring back to life, just as soon as normal economic activity resumes. That’s why we think now could be the perfect time for you to start building your own stake in this exceptional business – especially given the shares look to be trading on a fairly undemanding valuation for the year to March 2021. Click here to claim your copy of this special report now — and we’ll tell you the name of this Top Growth Share… free of charge! More reading The Tullow Oil share price is on a tear. Is this penny stock a buy for me now? Tullow Oil’s share price rises after FY results. This is what I’d do now The Tullow Oil share price vs the PMO share price: which stock should I buy? Zaven Boyrazian does not own shares in Tullow Oil. 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 Will the Tullow Oil share price recover in 2021? appeared first on The Motley Fool UK.
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  8. The Tullow Oil share price is rising: should I buy now? (04/06/2021 - The Motley Fool UK)
    Tullow Oil (LSE: TLW) is an oil explorer and producer operating in Africa and South America. The Tullow Oil share price rose about 140% in the past year. The stock traded with a low price of 13.42p and a high of 65.82p during this period. I have missed this stock market rally. Is it too late for me to invest in this penny stock? The bull case for the Tullow Oil share price Tullow Oil’s recent results are good, taking into consideration the disruptions caused by Covid-19. The company’s revenue fell by 17% year on year to $1.4bn. Sales volume increased by 0.8% to 74,600 barrels of oil equivalent per day (boepd). This was offset by a 23% decline in average realised oil prices to $50.9 per barrel (bbl) of oil. Oil prices have been on a steady rise this year. They have remained above $50/bbl and currently are trading at around $72/bbl. The strong demand and supply restraints of oil have led to an upward trend. This is positive for Tullow Oil’s share price.  The company reported free cash flow of $432m. An asset sale in Uganda helped to raise cash and reduce debt. The company also plans to sell assets this year, which should help the company focus on productive assets with good cash flows. Particularly, management is confident in its Ghanaian oil fields. It has only produced about 393m barrels, of the estimated 2.8bn barrels in Ghana. Recently, it also started its multi-year and multi-well drilling in this region. This was an important milestone for the company, which should help realise its 10-year business plan. A high debt a concern? The company has reduced its net debt from $2.8bn to $2.4bn at the end of December 2020. Even though the reduction is positive, the debt is still very high. The company’s market capitalisation is about $1.3bn at the time of writing. Its equity at the end of December 2020 was negative $210m. Credit rating agencies also have downgraded their ratings in the past year. This would make it difficult for the company to raise debt and also increase its interest costs. Tullow Oil’s chair, Dorothy Thompson, recently decided to step down. This is a bit of concern unless the company finds a good replacement, since Thompson was instrumental in cost savings, asset sales, and efficiently handling the company.  The long-term outlook is not very encouraging for the energy sector. Most countries are looking for a reduction of oil consumption and looking for clean energy alternatives. So, in my opinion, oil prices might be under pressure, which is negative for Tullow Oil’s share price. Conclusion Taking all things into consideration. I like the company’s focus on cash flows and trying to achieve its 10-year business plan. However, the debt is a bit of worry for me. So, I would keep the stock on my watchlist, and I am not a buyer of the stock today. “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 How much is a student loan in the UK? The Greggs share price is up 45% in 2021. Can GRG keep rising? Why I’m still buying Scottish Mortgage Investment Trust Where is the Boohoo share price going in June? 1 high-growth pick to buy for my Stocks and Shares ISA in June Royston Roche 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 Tullow Oil share price is rising: should I buy now? appeared first on The Motley Fool UK.
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  9. Tullow Oil’s share price rises after FY results. This is what I’d do now (10/03/2021 - The Motley Fool UK)
    UK share markets are trading fractionally lower on Wednesday. But the Tullow Oil (LSE: TLW) share price isn’t suffering from weak investor appetite in midweek trade. Indeed, its share price is up 2% at 53.2p after the oilie released full-year results for 2020. Tullow hit 54.6p per share earlier today to reach levels not seen for almost 14 months. The oil giant has now more than doubled in value in just six weeks. But can Tullow Oil keep the run going? And should I buy the UK share for my Stocks and Shares ISA? Revenues and profits slump Unsurprisingly, Tullow Oil saw both revenues and profits plummet in 2020 as Covid-19 lockdowns and travel restrictions smashed oil demand. Turnover tanked 17% year-on-year to $1.4bn as the price Tullow got for its product slipped. The average price of its oil slipped to $50.90 per barrel versus $62.40 a barrel in 2019. Tullow Oil also saw production fall sharply in 2020. The black gold producer saw its working interest drop 12% year-on-year in 2020 to 74,900 barrels, it said. This decline reflected field cuts and water declines in Tullow’s key producing market of Ghana, it said, as well as production cuts at its Gabon operations as per OPEC+ requirements. In Ghana, combined production from its TEN and Jubilee assets slipped around 10m barrels year-on-year to 52.4m barrels. This fresh revenues slump meant annual gross profit at Tullow dropped 47% in 2020 to $403m. However, it wasn’t all bad news for the UK oil share last year. Net debt dropped by a chunky $430m year-on-year to stand at $2.38bn, helped by the recent sale of assets in Uganda. Meanwhile, free cash flow at the business improved to $432m, from $355m in 2019. Should I buy Tullow Oil shares? Tullow Oil said it expects group production to fall again in 2021, to between 60,000 and 66,000 barrels. This figure will be adjusted according to completed asset sales in Equatorial Guinea and Gabon, it added. But Tullow Oil struck a more upbeat tone beyond this year. It said that “investment focused on [our] cash generative producing assets in West Africa is expected to increase production in 2022 and sustain it for the longer term.” Investor appetite for Tullow Oil’s shares continues to strengthen. But I won’t buy the UK fossil fuel share for my own shares portfolio. The business of searching for and then producing crude is naturally packed with risk. But this isn’t all that’s discouraging me. I’m worried that mountains of fresh supply are about to come online at the same time as the rise of green energy casts a shadow over future demand. This threatens to hit Tullow Oil’s revenues hard. On the plus side, Tullow’s balance sheet is in much ruder health than it has been. And its plan to focus on low-cost and higher-cash-producing assets in West Africa over the next decade could produce handsome shareholder returns beyond 2021. But it’s still a risk too far for me. A Top Share with Enormous Growth Potential Savvy investors like you won’t want to miss out on this timely opportunity… Here’s your chance to discover exactly what has got our Motley Fool UK analyst all fired up about this ‘pure-play’ online business (yes, despite the pandemic!). Not only does this company enjoy a dominant market-leading position… But its capital-light, highly scalable business model has previously helped it deliver consistently high sales, astounding near-70% margins, and rising shareholder returns … in fact, in 2019 it returned a whopping £150m+ to shareholders in dividends and buybacks! And here’s the really exciting part… While COVID-19 may have thrown the company a curveball, management have acted swiftly to ensure this business is as well placed as it can be to ride out the current period of uncertainty… in fact, our analyst believes it should come roaring back to life, just as soon as normal economic activity resumes. That’s why we think now could be the perfect time for you to start building your own stake in this exceptional business – especially given the shares look to be trading on a fairly undemanding valuation for the year to March 2021. Click here to claim your copy of this special report now — and we’ll tell you the name of this Top Growth Share… free of charge! More reading The Tullow Oil share price vs the PMO share price: which stock should I buy? The 3 best oil stocks to buy right now Royston Wild 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 Tullow Oil’s share price rises after FY results. This is what I’d do now appeared first on The Motley Fool UK.
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  10. Infosys to consider share buyback on April 14 (12/04/2021 - Financial Express)
    It also announced a buy-back in early 2019 for an amount of Rs 8,260 crore and bought back 11.05 crore share at an average price of Rs 747.38 per equity share.
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  11. Sold 50% of shares for profit, yet my remaining shares cost went UP - why?? (24/05/2021 - Reddit Stocks)
    Hello, I am new to stocks and sold my first shares through TD Ameritrade today and it's left me with questions... I've bought 10 shares at various price points and my total cost was $1810. So a $181/share cost average. • I sold 5 of my shares when the price hit $186. • My remaining 5 shares in the market showed a new "cost" of $1190 which didn't make any sense to me. I expected the new cost to be $880 -- Cost of $1810 - [5 shares]*[$186 sell price] = $880. • I then bought 5 shares back when the price hit $178 leaving $40 in my cash account. • My new cost is $2080 for all 10 shares. So a $208/share cost average. I don't understand how I SOLD 5 shares ABOVE my cost/share average and then bought back in BELOW my cost/share average and my cost/share average went UP. ​ Can someone please explain? I cannot figure this out! ​ Thanks in advance!   submitted by   /u/PyroMan99 [link]   [comments]
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  12. Wash Sale Question (16/04/2021 - Reddit Stocks)
    So I’m hyper worried about screwing myself on taxes and I think I understand a wash sale correctly, but I just need some reassurance. The question: If I buy a share at 100. The price drops to 90 so I buy another. My cost basis is 95, and the stock comes up to 95. But I have reason to think it’s going to drop more before coming back up. So I sell my 2 shares at 95 and reinvest when it drops back down. Is that going to make the first share ($100) considered a wash since I bought back in after the sale? Basically will the 2 share sale be a +$5 realized gain, or will that still be a +/-$0 when it comes tax time?   submitted by   /u/Logan_KW_ [link]   [comments]
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  13. Tullow Oil beats on revenue (10/03/2021 - Seeking Alpha)

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  14. Does the Rolls-Royce share price make me want to buy in 2021? (21/04/2021 - The Motley Fool UK)
    As stock market crash stories go, the Rolls-Royce Group (LSE: RR) one is not pretty. But is there going to be a happy ending? Disappointingly, the Rolls-Royce share price recovery has gone off the boil a little, and the price is down so far in 2021. Over the past two years, the damage amounts to a painful 68% fall. Rolls-Royce depends on civil aviation for the biggest slice of its income. And while planes were grounded and engines didn’t need maintenance and repair, income for Rolls was hammered. It’s important to remember, though, that that’s not all there is to Rolls-Royce. The firm also has power systems and defence divisions. Still, the grounding of passenger planes was tough. But things are starting to look better now. Or are they? Folks in the UK seem to be super keen to book their holidays in the sun (almost as keen as they are to get back to the pubs, it seems). And the early 2021 recovery in the Rolls-Royce share price was surely based on anticipation of a sun-seeking summer. Some transport firms, including TUI, have made positive sounds about the prospects for international summer holidays this year. It might happen, and the Rolls-Royce share price could head upwards again. New Covid fears But fresh Covid-19 waves have already started around the world. And only this week, the British Prime Minister warned that we’re likely to see a third wave this year. I doubt it will be as devastating as those already past. But I won’t be booking any flights just yet. The prospects for 2021 don’t really matter too much for me anyway. No, I’m thinking of the longer-term future for the Rolls-Royce share price. About what things will be like in, say, five years. And whether the current valuation of the company suggests the shares are a bargain. And that’s where I’m just not sure. Firstly, Rolls-Royce did get itself into a sustainable financial situation. At least, I think it did, for now at least. Unless things get stretched and the company has to go back to the markets for a fresh injection of cash, that is. Is that likely? If the aviation business doesn’t get going again fairly soon and Rolls doesn’t see an improving income stream, I wouldn’t be surprised. Rolls-Royce share price progress? So when will we see the cash flows needed for sustained Rolls-Royce share price progress? Some observers suggest that aviation could get back to 2019 levels by 2024-2025. But those are among the more optimistic guesses. There’s increasing pressure from climate change too, with carbon emissions targets being brought forward. I wouldn’t be at all surprised if 2019 turned out to be a peak year for leisure flights, not to be equalled for a long time. So, on the one hand, I’m seeing a company that looks undervalued on the face of it, and that I’ve liked for years. And I think the Rolls-Royce share price could indeed have a strong future. But there are just too many uncertainties between now and next year for me. So no, I’m not going to buy in 2021. Maybe 2022. 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 ways the Rolls-Royce share price could benefit from the reopening economy Is the Rolls-Royce share price undervalued? Is reopening important for the Rolls-Royce share price? Should I invest in Rolls-Royce or Aston Martin shares right now? This is what I’d do about the Rolls-Royce share price right now! Alan Oscroft 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 Does the Rolls-Royce share price make me want to buy in 2021? appeared first on The Motley Fool UK.
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  15. The Lloyds share price: 2 reasons I’m keen right now, but 2 big risks I’d note (11/02/2021 - The Motley Fool UK)
    The Lloyds Banking Group (LSE: LLOY) share price has performed well over the past week. In fact, it’s up 10.4%, making it the best performer over this period in the FTSE 100. Unfortunately, if we expand the time horizon, the share is still down 34% over a one-year period. I’d look to buy the share for several reasons, but am conscious of some risks. A better outlook My first reason isn’t particularly technical in nature. Simply put, I think the outlook for the bank (and therefore the Lloyds share price) is much better than last year. The UK managed to avoid a no-deal Brexit. An agreement on financial services is due in coming months. The UK has vaccinated over 13m people against Covid-19. The UK Government is continuing to provide generous fiscal support to try and boost the economy. All of the above are positives for companies trading in the UK. Lloyds is one of these companies, and so is feeling the benefits of this via a short-term move higher in the share price. This isn’t particularly company-specific, but the wider environment is certainly helping. The second reason I like the Lloyds share price is due to the potential dividend resumption. The Bank of England has removed guidance urging banks not to pay dividends. Lloyds returned to a profit of £1bn in Q3, with a loan-to-deposit ratio of 98%. It means it has the liquidity to pay out a potential dividend. Downside risks for the Lloyds share price One big risk I’d note is the gradual reduction in the net interest margin. In the Q3 update, Lloyds specifically flagged this up as a reason why group income was down 17%. The net interest margin stands at 2.42%. This is the difference between the rate the bank lends out at versus the interest it receives. This margin has been decreasing, as the UK base rate has been cut. It takes time for the difference to filter through, and so this move lower is likely going to continue through 2021. There isn’t much the bank can do on this, and so it could be a negative drag on the share price that I should be aware of. The second risk is the delayed impact on finances and loans from Covid-19. The bank has set aside large provisions for bad debt during 2020. Some £4.1bn through to Q3 has been reserved, and Lloyds says it’s a realistic level given “no significant change in economic outlook”. As discussed above, the outlook could be rosy this year. But I think the drag from the pandemic might not be fully appreciated. Consumers and businesses are being supported by furlough cash and other fiscal measures that will stop at some point. In this case, there could be a rise in loan defaults that isn’t currently taken into account by Lloyds or the share price. Overall, I’m looking to buy back into the Lloyds share price shortly, acknowledging the potential risks. 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 UK share investing: why I’d ignore Lloyds and buy these 2 cheap FTSE 100 shares Lloyds’ share price: here’s what concerns me The Lloyds share price is recovering but here’s why I won’t buy back in Why I’d ignore Lloyds and buy other cheap UK shares for my ISA! Lloyds share price: why this FTSE 100 bank is on my February watchlist jonathansmith1 has no position in any of the shares mentioned. The Motley Fool UK has recommended Lloyds Banking Group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post The Lloyds share price: 2 reasons I’m keen right now, but 2 big risks I’d note appeared first on The Motley Fool UK.
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  16. Deliveroo’s share price has crashed. Should I buy the stock now? (06/04/2021 - The Motley Fool UK)
    Last week, food delivery company Deliveroo (LSE: ROO) listed on the London Stock Exchange via an Initial Public Offering (IPO). It’s fair to say the IPO was a flop. On Thursday, the stock closed at 282p – about 28% below the opening price of 390p. Has Deliveroo’s share price fall created an opportunity for me to buy the growth stock at an attractive valuation? Let’s take a look at the investment case. Deliveroo shares: the bull case There are a few things I like about Deliveroo from an investment point of view. One is that the company – whose mission is to be the ‘definitive’ online food company – is growing at a rapid rate. In 2020, for example, gross transaction value (GTV) rose by 64% to £4.1bn. Meanwhile, underlying full-year revenue rose 58% to £1.2bn. It’s worth noting that, while Deliveroo has experienced rapid growth so far, it believes it’s “only just getting started.” It says that bringing the food category online represents an ‘enormous’ market opportunity. I also like the fact that the company is founder-led. Will Shu started the company back in 2013 and he’s still CEO. He’s also the majority shareholder, which means he’ll be keen to see the company (and the share price) do well. Quite often, founder-led companies turn out to be good investments. The risks I do have some concerns over Deliveroo shares. One is the company’s still generating large losses. Last year, it registered an operating loss of £221m. The year before, the operating loss was £320m. This adds risk to the investment case. I tend to avoid unprofitable companies unless the opportunity is really compelling. It’s also worth pointing out that the path to profitability could be challenging. Recently, the Supreme Court ruled that drivers at gig economy rival Uber are workers and not self-employed. This looks set to cost the company hundreds of millions of dollars. This could have big implications for Deliveroo. It may have to improve pay and conditions for its delivery workers. Many large institutional investors such as Legal & General, Aberdeen Standard, and Aviva are avoiding Deliveroo shares due to concerns over workers’ rights. Another concern is that the company faces heavy competition from the likes of Uber Eats, Just Eat, and delivery companies in other countries. It’s certainly not alone in the food delivery space. Rivals could steal market share. Does it have a strong competitive advantage? I’m not so sure. Finally, there’s the valuation. At the current share price, Deliveroo sports a market capitalisation of about £5.5bn. Looking at the price-to-sales ratio (4.6, using last year’s revenue), that market-cap isn’t outrageous by tech stock standards. However, it does add a bit of risk, given the lack of profitability and the threat of regulatory intervention. ROO shares: my move now Weighing everything up, I’m going to keep Deliveroo shares on my watchlist for now. I think there are probably safer growth stocks I could buy right now. Like this one… FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading Can the Tiziana Life Sciences (TILS) share price continue climbing? The NCYT share price exploded by 64,500% in 2020. Can it do it again? The EUA share price increased 600% in 2020. Should I buy now? Tullow Oil shares are up 65% in 2021! Could they get back to 100p this year? The AFC share price is surging. Should I buy now? Edward Sheldon owns shares in London Stock Exchange and Legal & General Group. The Motley Fool UK has recommended Just Eat Takeaway.com N.V. and Uber Technologies. 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 Deliveroo’s share price has crashed. Should I buy the stock now? appeared first on The Motley Fool UK.
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  17. Amigo loans a good buy? (25/05/2021 - Reddit Stocks)
    Just looking at Amigo loans, I know they've just lost a case which they were worried about a few months back however reading their response it seems as though they have some sort of plan to get back. With the shares now at around £0.08 and obviously the share price plummeted from the £3.00 pre covid price (I'm assuming largely due to not being able to do anything so no need for cash and also people claiming they were sold something they did not want etc) Just wondering what you all think? With everything opening back up I can see more people now especially with job losses etc turning to them for fast cash so might be worth a go? If I buy 1000 shares then I'll lose £90 which I'm fine with but I truly think it will rise now things are reopening   submitted by   /u/gymlol1586 [link]   [comments]
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  18. can a company hedge itself in any way against a falling stock price of itself? (12/04/2021 - Reddit Stock Market)
    i‘m thinking about a company and lets say it plans to expand its business, therefore issue new shares and take up new debt. the company knows this will lower its share price. so to kind of finance itself they shortsell or buy options and bet against themselves (say they do this via some subsidiary and banks are stupid enough to sell to them). i‘m sure this is not legal, but companies can also buy back shares if they know they will do well and think the share price will increase. so for me they are kind of trading on inside information. do some of you this might sound stupid but let me know what you think about this :)   submitted by   /u/No-Buy-8927 [link]   [comments]
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  19. 3 FTSE 250 penny stocks to buy (25/04/2021 - The Motley Fool UK)
    Penny stocks have a bit of a bad reputation and for good reason. Many penny shares are small businesses, which may have weak balance sheets and uncertain outlooks. However, not all penny stocks are bad investments. The definition of these investments is expansive, and even large businesses in the FTSE 250 can qualify as penny shares. With that in mind, here are three penny stocks I’d buy for my portfolio today.  Recovery investment  The first company I’d buy is Tullow Oil (LSE: TLW). This is a high-risk recovery play. The oil price has recovered from its lows of the last year as the global economy has started to move on from the pandemic. This should translate into higher profits for the oil producer.  That said, it could be some time before Tullow’s revenues recover to a level that would stabilise the enterprise. Over the past few years, it has accrued a tremendous amount of debt, and paying this off could be a struggle. If the price of oil slumps again, it may not even be possible. That’s why this is such a high-risk FTSE 250 recovery play. It’s certainly not suitable for all investors.  Penny stocks on offer  As well as Tullow, I’d buy Centria (LSE: CNA) for my portfolio. This is another company that’s really struggled over the past few years. The British Gas owner has seen its share price dwindle as profits and revenues have declined, and customers have gone elsewhere.  However, I think the group’s prospects could be about to change. Management has been focusing on paying down debt and selling non-core assets recently. The rising oil price could also help the firm shift its North Sea oil and gas business, which has been on the block for some time. Selling this division would provide more capital for reinvestment and reducing debt.  However, the enterprise’s main challenges haven’t gone away. It’s still facing fierce competition from newer upstarts, and volatile commodity prices mean its income is unpredictable.  Despite these risks, I’d buy the company for my portfolio of penny stocks today.  Booming profits Premier Foods (LSE: PFD) has been one of the pandemic’s biggest winners. Profits jumped to £47m in 2020 from a loss of £34m in 2019. Analysts believe profits could nearly double again this year, although that’s just a forecast at this stage.  The company was able to use its bumper profits last year to pay down debt and reduce its pension deficit. This should free up more cash in the years ahead to invest in the business. I think this could help the firm build on the progress over the last 12 months and drive earnings growth for many years to come.  That’s why I’d buy the FTSE 250 business for my portfolio of penny stocks today.  Having said all of the above, Premier is still loaded with debt. It’s also facing increasing competition from new brands. It needs to keep investing in its offering to keep consumers interested, or these brands may steal market share. That could hurt profits and the group’s ability to pay down debt.  The high-calibre small-cap stock flying under the City’s radar Adventurous investors like you won’t want to miss out on what could be a truly astonishing opportunity… You see, over the past three years, this AIM-listed company has been quietly powering ahead… rewarding its shareholders with generous share price growth thanks to a carefully orchestrated ‘buy and build’ strategy. And with a first-class management team at the helm, a proven, well-executed business model, plus market-leading positions in high-margin, niche products… our analysts believe there’s still plenty more potential growth in the pipeline. Here’s your chance to discover exactly what has got our Motley Fool UK investment team all hot-under-the-collar about this tiny £350+ million enterprise… inside a specially prepared free investment report. But here’s the really exciting part… right now, we believe many UK investors have quite simply never heard of this company before! Click here to claim your copy of this special investment report — and we’ll tell you the name of this Top Small-Cap Stock… free of charge! More reading Would I buy these rising FTSE 100 and FTSE 250 penny stocks today? The Centrica share price is up 20% this year. Should I buy more? 1 penny stock buy I’d pick for my Stocks and Shares ISA Tullow Oil shares are up 65% in 2021! Could they get back to 100p this year? 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 3 FTSE 250 penny stocks to buy appeared first on The Motley Fool UK.
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  20. Just trying to learn how calls work.. (10/03/2021 - Reddit Stock Market)
    Just been reading into it recently, wanting to understand them before I do anything stupid. Basically what I understand, by way of example (Again, I'm citing what I understand, and am asking for help where I'm wrong: James buys a call for 100 XYZ stock @ $10 each for $1k, and he sets the strike price to $20/share by next month. Three potential situations can follow: The stock price goes up to $20 each in just 3 days; James exercises the call out of fear it won't get any higher and drop to below $10, and receives 100 XYZ stock, now worth double his investment, for half the price. James wins. The stock price goes up to $25/share. James exercises, and gets $15/share extra value, receiving 100 XYZ worth 2500 for a $10/share price. The stock price reaches only $18/share (or dips to $5/share) before the expiration date, and since in either case the strike price is not reached, the option expires worthless. James has lost $1k, and receives no stock. Or does it go like this? XYZ is worth $10. James makes a call, buying the right to 100 XYZ at the assumption they will reach $20 by expiration. He pays $2k for this call. This has two possible outcomes: The price goes up to $25+/share, into the money. James exercises, and receives 100 shares for the $20 price tag, but receives an extra $5+/share value. The price does not meet the $20/share strike price. James loses the $2k and receives no stock. If one or neither of these is correct, I'd really appreciate guidance. Thank you!!   submitted by   /u/ninthtale [link]   [comments]
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  21. ZKIN 15m Outlook (30/03/2021 - Reddit Stock Market)
    The price of ZKIN has lost few percents of it's value since the last outlook, as it's currently being traded slightly below $10 per share. Yesterday's bullish divergence failed to find support at $10, and as a result of RSI falling below 40, a bearish momentum arrived. This bearish momentum was quickly capped as this dip atrracted buyers and the selloff was capped at $9.35 per share. Unfortunately the gains weren't able to test resistance at $11 as they got capped at next pivot at $10.58, from where the bullish momentum has stalled. As of right now, the price of ZKIN keeps falling, possibly looking for another sharper dip to the downside, that is most likely getting bought and a retest of $10.58 would follow. Yet, the local low at $9.58 could have been the bottom, but there is no technical aspect to back it. RSI is the one what concerns us about the price seeing extended losses as it's below 40, meaning bearish momentum is still present. A break back above $10 will get rid of the bearish momentum. MACD is currently in a second selling wave while the selling pressure keeps increasing, as it haven't found peak yet. The overall short term trend has turned into a downtrend as the EMA's are signaling. As of writing this Outlook, the price of ZKIN has confirmed the bottom at $9.58 with a break above $10. This has also vanished the bearish momentum as RSI is back above 40. As of right now, a move to pivot high at $10.60 is expected.   submitted by   /u/BreianaOlson [link]   [comments]
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  22. These 5 FTSE 250 stocks are up 50%+ this year! Here’s what I’d do now (13/04/2021 - The Motley Fool UK)
    While the FTSE 100 gets most of the attention, investors shouldn’t overlook FTSE 250 stocks, with the index hitting an all-time high of 22,204.89 last week. Over the last 12 months, FTSE 250 stocks are up by 38%, double the growth of the FTSE 100. Danni Hewson, financial analyst at AJ Bell, says it has benefited from the UK’s “supercharged vaccine rollout.” Some have benefited more than others. Best performing FTSE 250 stock this year is GameSys Group, up a thumping 70.1%. This sizzling performance has been driven by takeover talk. US firm Bally’s is sizing up the business for £2bn, equivalent to £18.50 a share. The top performing index The stock jumped almost 20% on the news and now trades at £19.24, as investors gamble on a rival bid pushing the price higher. Given the thin gains if that happens and large potential drop if the bid falls, I’m steering clear. Next best-performing FTSE 250 stock is Tullow Oil, up a whopping 68.9%. I’m glad to see it powering upwards after a long dismal run. A decade ago, Tullow traded at around 1,250p a share. Despite the rebound, it still trades below 50p today. Tullow was hammered by last year’s plunging oil price, with profits down 47% to $403m. It’s now benefiting from the rebound. Sentiment was also lifted by a new $1.7bn facility negotiated in February, while selling its Equatorial Guinea and Dussafu assets to Panoro Energy has trimmed debt. It has embarked on a multi-year, multi-well-drilling programme in Ghana. While I’m glad to see Tullow bounce back, the oil exploration game is too risky for me. Especially since the oil price could be becalmed from here, with Morgan Stanley predicting it’ll be stuck in the $60 range all summer. Here’s an even more dramatic recovery play. Cineworld Group is the third best-performing stock on the FTSE 250, up 64.7%, AJ Bell figures show. Measured over six months, it’s up 248%. Investors who chanced all on the bombed-out leisure and entertainment sector have been amply rewarded. Sadly, I decided it was too risky for me and just have to accept that I missed the boat on this one. Cineworld’s future is still far from secure. I’d consider these two FTSE 250 stocks Facilities management firm Mitie Group is fourth best performer, up 59.3%. It started the year well, reporting a 6.7% rise in Q3 organic revenues to £573.9m, plus a slew of new contract wins. Management fuelled investor optimism by predicting the second half of the year will be better than the first. Mitie dropped last year’s dividend as aviation and financial services customers struggled, and office occupancy fell. That may reverse, but slowly. One to watch if the recovery beds in.  In fifth place, financial services company Just Group is up 50.4%. I tipped this stock last year so I was glad to see full-year total revenues jump 21% to £4.64bn. Just had to build its capital coverage to meet stricter regulatory demands on equity release mortgages, and is now enjoying the fruits of its labours. Financial services is a competitive sector. The Just share price may be due a breather after recent success. It remains one of my favourite FTSE 250 stocks though. For fast share price growth, I’d check this out. The high-calibre small-cap stock flying under the City’s radar Adventurous investors like you won’t want to miss out on what could be a truly astonishing opportunity… You see, over the past three years, this AIM-listed company has been quietly powering ahead… rewarding its shareholders with generous share price growth thanks to a carefully orchestrated ‘buy and build’ strategy. And with a first-class management team at the helm, a proven, well-executed business model, plus market-leading positions in high-margin, niche products… our analysts believe there’s still plenty more potential growth in the pipeline. Here’s your chance to discover exactly what has got our Motley Fool UK investment team all hot-under-the-collar about this tiny £350+ million enterprise… inside a specially prepared free investment report. But here’s the really exciting part… right now, we believe many UK investors have quite simply never heard of this company before! Click here to claim your copy of this special investment report — and we’ll tell you the name of this Top Small-Cap Stock… free of charge! More reading Here’s what I’m doing about Pensana stock Why I’d forget the Deliveroo share price and buy these FTSE 100 shares instead A FTSE 100 stock I’d buy now The Ryanair share price is close to 3-year highs. Would I still buy it? 2 UK shares I’d buy this April 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 These 5 FTSE 250 stocks are up 50%+ this year! Here’s what I’d do now appeared first on The Motley Fool UK.
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  23. Question About Capital Gains Taxes (05/06/2021 - Reddit Stocks)
    If this doesn't belong here please let me know where I should post it and I'll remove it! When it comes to capital gains taxes, how would it work in this scenario? I'm trying to make sure I'm right before I explain this to my friend: Let's say I buy one whole share of Company A for $100 per share. The stock price goes up to $200 per share. I decide to sell $100 worth of the stock (so 0.5 shares). What would I be paying taxes on? Would I pay no taxes since I put in $100 and then sold enough to get back that $100 and technically made "no profit or loss"? OR would I have to compare the price of 0.5 shares when I first bought the stock ($50) to the price of 0.5 shares now ($100), which would mean I made a $50 profit and should therefore get taxed on that? My friend thinks it's the prior, I think it's the latter. Anyone know?   submitted by   /u/PoppinPillieEilish [link]   [comments]
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  24. Wash sale adjustments: A word of caution (07/03/2021 - Reddit Stock Market)
    To all new investors and traders like myself: I recently paid for a valuable lesson that I’d like to share. I’m sure this is common knowledge to many, but for me, this is the type of thing I only learn by diving in. ​ Right up front, here is the TL;DR: If you sell at a loss, and purchase back at a similar price, the taxable loss will be rolled back into the cost basis of your shares as a “wash adjustment” and will permanently raise the price per share of the shares you purchased. Be aware of this. I recently panic sold some of my long-position shares at the beginning of this downturn. My rationale was this: If the price of these shares is going to drop below my original entry point (cost basis) anyways, I may as well sell for some small profits before it drops below, then I will buy back in at a similar/lower price and not only realize gains, but strengthen my position. I still feel good about my logic. However, I did not have all of the educations needed to make a good decision. I hope to help others to not make the same mistake. My prediction was right. I sold for some small profits (around 1k, after being up much more than that) and the next day the cost dropped almost 20% lower than my original entry point several months earlier. So, I bought back in with small increments along the dip (not all at once) and acquired lots of shares slightly above, at, and below ny original entry point. I felt quite proud of my decision and trusting my intuition an research / charting. I did this to find, however, that after purchasing these lots, they price of my shares was automatically adjuster to a higher cost basis, displaying a small ‘W’ icon that read “wash sale adjustment’. I now know that due to an IRS regulation, if you sell a company at a loss, and the buy it again within 30 days, the amount of the loss is rolled back in to the cost of the shares when you re-purchase, thereby automatically increasing your cost per share. So, in short, I sold thousands of shares between $3.50 and $3.60 for some profits on my original positions, however, some were at a loss. I had lots ranging from $3.11 to $4.00 per share. My total cost average was $3.49/share. When I purchased the shares back from $3.60 down to the floor of $3.19, the shares I purchased that were similar to those that I took a loss on were automatically adjusted up to over $4.00 per share. Now I’m holding thousands of shares at over $4.00 when I bought them at $3.50 and lower due to this IRS rule.   submitted by   /u/Less_Education_6809 [link]   [comments]
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  25. Carnival ($CCL) is planning to sell $1 billion in new shares. What to expect? (23/02/2021 - Reddit Stocks)
    On Monday Carnival announced that it’s going to sell fresh shares worth $1 billion. With the current price of ~$25/share is 40 million new shares. The AVG volume is at 41.41M atm. I’m pretty novice to the investing scene, is my understanding correct about CCL releasing new shares in around the volume of the existing shares? This is of course to raise capital in order to cover the operating costs needed until the awaited opening. How could this affect the stock price short term/long term? The pre-pandemic level of $40/share is not expected to come back any time soon, however this dilution could probably hold back the increase for an even longer time.   submitted by   /u/waldi712 [link]   [comments]
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  26. The 3 best oil stocks to buy right now (12/02/2021 - The Motley Fool UK)
    With the oil price rising recently, I’ve been looking for the best related stocks to buy right now for my portfolio. Buying oil stocks can be a great way to gain exposure to the commodity, but this strategy doesn’t come without risks.  Oil and gas stocks can be highly volatile. As they tend to have fixed production costs, they’re leveraged plays on the commodity. According to Tullow Oil‘s (LSE: TLW) full-year 2018 results presentation, a $5 move in the price of oil either way would have detracted or added $125m from free cash flow. That year the group generated $411m in free cash flow from operations. As such, a drop of just $16.44 would have wiped out group cash flow. In the first half of this year, the oil price dropped by around $50 in four months.  These are only rough figures, but I believe they clearly illustrate the risks of investing in this sector. Companies can make or lose fortunes overnight. Still, I’m comfortable with the level of risk involved in investing with these businesses. That’s why I’ve been looking for the best stocks to buy right now as the price of oil recovers. The best oil stocks to buy right now Tullow Oil is one of the firms on my list. This company is a very high-risk investment. It’s currently involved in renegotiating the terms of its debt with lenders. If management fails, the group could collapse. However, if the business succeeds, the share price could rally as Tullow gains breathing space. At the end of November, the company projected it could generate as much as $7bn in cash from operations over the next decade. Its current market capitalisation is £431m. I think this shows just how much potential the business has. That’s why I’d buy it for my portfolio.  Green energy  Royal Dutch Shell is another group that features on my list of the best oil stocks to buy now. The company, which is one of the world’s largest oil producers, recently unveiled a plan to invest billions of dollars in renewable energy over the next 30 years. Of course, the company isn’t without its risks. It has a lot of debt, and the low oil price also meant the business had to write off billions of dollars of assets last year. Nevertheless, despite these challenges, I’m optimistic about the groups future. That’s why I’d buy it today.  Large payout  Finally, I think one of the best oil stocks to buy right now is Cairn Energy (LSE: CNE). There’s been a cloud hanging over this company for the past few years after India seized a 10% stake in its subsidiary there. The company has been fighting the government for compensation, and a court recently ruled in its favour, awarding the business $1.2bn  (£870m) in damages. The sum hasn’t been paid yet, but it could be a huge positive for the £900m market-cap firm. Of course, there’s a high chance India may not pay. In that case, Carin’s future is more uncertain. That’s the most significant risk facing the business right now. But this is a high-risk, high-reward bet on an enormous payoff to the company. Still, I’m comfortable with this level of risk. That’s why I’d buy Cairn today.  The high-calibre small-cap stock flying under the City’s radar Adventurous investors like you won’t want to miss out on what could be a truly astonishing opportunity… You see, over the past three years, this AIM-listed company has been quietly powering ahead… rewarding its shareholders with generous share price growth thanks to a carefully orchestrated ‘buy and build’ strategy. And with a first-class management team at the helm, a proven, well-executed business model, plus market-leading positions in high-margin, niche products… our analysts believe there’s still plenty more potential growth in the pipeline. Here’s your chance to discover exactly what has got our Motley Fool UK investment team all hot-under-the-collar about this tiny £350+ million enterprise… inside a specially prepared free investment report. But here’s the really exciting part… right now, we believe many UK investors have quite simply never heard of this company before! Click here to claim your copy of this special investment report — and we’ll tell you the name of this Top Small-Cap Stock… free of charge! More reading This is why the Tullow Oil share price has sunk 11%! My 3 best investment ideas from January 2020 and what I’d do about them now 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 3 best oil stocks to buy right now appeared first on The Motley Fool UK.
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  27. Despite a rising Natwest share price the government has been selling at a loss. Here’s how I’d react. (22/03/2021 - The Motley Fool UK)
    The biggest shareholder in Natwest (LSE: NWG) is the UK government. After bailing out RBS as it then was in the financial crisis, the state has been the majority shareholder ever since. With the Natwest share price adding 72% over the past year, a lot of investors feel the shares have positive momentum. But the bank said it was buying around 5% of all its shares back from the government. That netted the government around £1.1bn. The investment was a strategic one in the first place, but nonetheless the government lost around £1.8bn on the sale compared to its original purchase price. Here’s why this happened and what I think it means for the Natwest share price. A reluctant holder The government was never keen to be a Natwest shareholder. Its investment was a form of support when the bank was in crisis more than a decade ago. Since then it has repeatedly said it would seek to reduce its stake over time. This was the third such sale to cut the stake. More are planned, with the entire position expected to unwind in the next five years. As an investor I don’t like getting back less than I put into an investment. But sometimes one decides to cut one’s losses, for example, because there is a big bill due. Public finances have been severely challenged by the pandemic. Raising money by selling shares at a loss is a tactic used by governments who need money, not just private investors. The last time the government sold the bank’s shares, in 2018, the Natwest share price was higher than it is now. So while there has been strong positive momentum in the share price, maybe spending more time holding on for further recovery didn’t appeal to the government. Impact for the Natwest share price I think this news is actually positive overall for the Natwest share price. First, a reduced government shareholding can also be seen as a vote of confidence in the bank’s management. The government invested when the bank was at risk of collapsing. Selling down the position suggests that the state is now more comfortable with Natwest’s ability to fund and run itself than it was at the time of the last financial crisis. Secondly, Natwest plans to cancel 390m of the shares it bought back. That is about 3% of its total share float. I see this as positive for the Natwest share price. Fewer shares in circulation means higher earnings per share even if total earnings remain flat. I’d consider buying Natwest I’d think about buying Natwest shares for my own portfolio. This latest news makes them more attractive to me. It should be positive for earnings per share. However, the share purchase will cost the bank money and will add a little more pressure on the balance sheet. Bank dividends are still limited by regulators, but the reinstated dividend means the share yields 1.5%. However, further shocks to the banking system such as pandemic arrears or joblessness could bite into future profits. Despite its strong run over the past year, I continue to see value in the Natwest share price. While the government is slowly selling over time, I would consider buying. 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 NatWest share price has jumped 58%! Is it too late for me to buy the stock? FTSE 100 bargains: the best stocks to buy right now Here’s the best-performing UK banking stock from February. Should I buy it now? Stock market recovery: 3 UK shares to buy today christopherruane 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 Despite a rising Natwest share price the government has been selling at a loss. Here’s how I’d react. appeared first on The Motley Fool UK.
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  28. The Lloyds share price is climbing in February. Should I top up my holding? (18/02/2021 - The Motley Fool UK)
    As a Lloyds Banking Group (LSE: LLOY) shareholder, I’m happy to see the price up 12% so far in February. But if you’d told me five years ago that I’d be pleased by a 37p Lloyds share price today… well, you know. The 12-month performance is still pretty shocking, with Lloyds shares down 34% as I write. Obviously that’s all down to the Covid-19 pandemic. Well, actually, maybe not entirely. There must be a Brexit factor there too, but it all leads to pain for shareholders, wherever it comes from. Negativity towards Lloyds does seem to be easing off, though, since Covid-19 vaccine progress has brought some cheer. Since a 52-week low of 23.58p on 22 September 2020, the Lloyds share price has gained 58%. It would have been nice if I’d topped up my Lloyds holding back in September, but why am I considering buying some more now, after that impressive rebound? First, I want to look at the downside risks. As my Motley Fool colleague Kevin Godbold has pointed out, Lloyds is facing a potentially tough economic environment. The UK banking industry is a shadow of what we had back before that Brexit referendum. And the trade deal that our Prime Minister seemed so proud of has offered pretty much nothing to the UK’s banks. Lloyds facing uncertain economics Lloyds is UK-focused these days, which I reckon was a wise strategic move. And with a total of more than 30m customers, there’s still plenty of business. But we really don’t know how long the economic hardship from the pandemic will last — and I think Lloyds could be particularly affected by any lingering weakness. We have no real idea of the size of the actual fallout from Brexit either. Our negotiated exit has most definitely not left us with barrier-free trade. So what about the bull case, from today’s rebased Lloyds share price? Well, Barclays has announced a pandemic-related impairment charge amounting to £4.8bn. I’m not going to try to guess at what Lloyds’ figure might be, but we’ll know soon enough. Lloyds will be releasing 2020 full-year results on 24 February. I think there could be some painful reading there. But the latest from Barclays reflects some of my reasons for feeling bullish about Lloyds right now. The key development is the reinstatement of Barclays’ dividend. It’s only a modest 1p per share for 2020, but it’s a start. On top of that, Barclays plans to buy back £700m of its own shares. Boss James E Staley reckons shareholders should see a meaningful improvement in returns this year. Lloyds share price down on the day The markets reacted unenthusiastically, marking Barclays down 4.5% on the day (at the time of writing). The contagion spread too, with the Lloyds share price pegged back 3.7%. Will there be a more positive reaction to Lloyds’ results next week? City analysts are expecting to see the Lloyds dividend reinstated this year, with some predicting a forward yield of better than 4%. And we’re looking at a price-to-asset value for Lloyds of only around 0.5 now. Those measures make me want to buy more. Yes, I see some serious risks ahead. But even accounting for them, I’m tempted by the Lloyds share price. 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 I’m avoiding the Lloyds share price. I prefer this 5% dividend yield stock instead! Should I buy Lloyds Banking Group shares now? Lloyds share price: should I buy in February 2021? The Lloyds share price is falling again! Should I take advantage and buy? The Lloyds share price: 2 reasons I’m keen right now, but 2 big risks I’d note Alan Oscroft owns shares of Lloyds Banking Group. The Motley Fool UK has recommended Barclays and Lloyds Banking Group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post The Lloyds share price is climbing in February. Should I top up my holding? appeared first on The Motley Fool UK.
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  29. What is people's confidence level in AMZN right now? (08/03/2021 - Reddit Stocks)
    Its the first time the stock has been below $3k/share in several months. I have 3 shares with a basis of $3,050. I'm comfortable with that but I'm considering getting 1 more share while it's under 3k to lower the basis a bit more. However, if I do so I'll only have about $1.5k left of DCA cash on hand. $1.5k is just under 3% of my total money in my brokerage account. Any thoughts? Could it spike back to $3300 quickly or might it be a slow trek back to $3300 if it ever gets back?   submitted by   /u/Findest [link]   [comments]
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  30. Forecasting U.S. Cannabis Stocks to 2022 (15/03/2021 - Reddit Stocks)
    Hello, I am new to forecasting and doing analysis in general. I thought it would be fun to do some forecasting and finding some good entry points for this year. I would love some feedback and some constructive criticism . Full discloser, I am not a financial advisor and this is not financial advice. I have interest to adding shares if the entry point it good. The hard part of forecasting these stocks are that they are not profitable, a lot of assumptions will have to be made and the numbers are probably going to be way off. The values I will be using are; projected Growth Rate in 2022 (%), Minimum Rate of Return (%), Margin of Safety (%), projected P/E ratio (multiplying growth rate by 2), and projected 2022 EPS ($). Most of these values I will be getting from Seeking Alpha under the Earnings Revisions tab. My Minimum Rate of Return will be 20% and Margin of Safety of 30%. My opinion is that these values are very conservative and gives a large room for error. Curaleaf (CURLF): Projected Growth Rate: 46.06% Projected P/E ratio: 92.12 Projected EPS: $0.35 By multiplying the P/E ratio by the EPS we get a estimated 2022 share price of $32.24, now we multiply by Minimum rate of return back to this year to get a estimated 2021 share price of $25.79. Then multiply by Margin of Safety we get a estimated entry point of $18.05. Cresco Labs Inc (CRLBF): Estimated Projected Growth Rate: 35.34% Estimated Projected P/E ratio: 70.68 Estimated Projected EPS: $0.61 Estimated 2022 share price of $43.11, Estimated 2021 share price of $34.49, Estimated Entry point of $24.14. Columbia Care Inc (CCHWF) Estimated Projected Growth Rate: 43.8 % Estimated Projected P/E ratio: 87.6 Estimated Projected EPS: $0.18 Estimated 2022 share price of $15.76, Estimated 2021 share price of $13.40, Estimated Entry point of $9.38. Green Thumb Industries Inc (GTBIF) Estimated Projected Growth Rate: 31.02 % Estimated Projected P/E ratio: 62.04 Estimated Projected EPS: $0.70 Estimated 2022 share price of $43.42, Estimated 2021 share price of $34.74, Estimated Entry point of $27.79. Planet 13 Holdings (PLNHF) Estimated Projected Growth Rate: 33.56 % Estimated Projected P/E ratio: 67.12 Estimated Projected EPS: $0.17 Estimated 2022 share price of $11.41, Estimated 2021 share price of $9.12, Estimated Entry point of $6.38. Again, this is all an estimate and will most likely be wrong. Let me know what you think, was I too conservative? Not conservative enough? Should I have used different values? All I know is that I like the stocks!   submitted by   /u/AJ5836 [link]   [comments]
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  31. RailTel makes muted stock market listing; gains 11% over IPO price to trade at Rs 104.6 apiece (26/02/2021 - Financial Express)
    RailTel stocks were trading at a price of Rs 104.6 per share, up 11.28% from its issue price of Rs 93-94 per share.
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  32. 5 passive income ideas I’d consider (10/06/2021 - The Motley Fool UK)
    Passive income is money one receives without having to work for it. One common source of passive income is investing in shares that pay dividends. As dividends are never guaranteed, I like to use multiple passive income ideas at once. Here are five such passive income ideas I would consider at the moment. Well known brands I would consider investing in Direct Line. The financial services group is well known thanks to its iconic red telephone. That helps it to attract and retain customers. Insurers can make attractive passive income sources because they take in a large pool of money as premiums but when things go well, need to pay less of it out as claims. That can make for a cash generative business model, which helps to support dividends. With Direct Line currently yielding 12.5% including special dividends, it certainly seems attractive. In reality the prospective yield is likely lower, as last year the company compensated for dividends not paid during the pandemic. Nonetheless, the pre-pandemic dividend of 29.3p still equates to a 10% yield at today’s Direct Line share price. Risks include recent government moves to tighten rules on pricing of policy renewals, which could hurt profits at all insurers. Another well known brand on my list of passive income ideas is supermarket chain Morrisons. I like the company’s vertically integrated supply chain and moves into online selling. With a yield of 4% excluding special dividends, the payout is attractive to me. But risks include price competition in the UK grocery market. Passive income ideas in finance I’d also consider a couple of financial companies as passive income ideas. The City of London Investment Trust yields 4.8%. It pays dividends quarterly, which can be attractive to many passive income seekers. It has grown its dividend annually in recent years, even during the pandemic. The trust offers exposure to a lot of shares, including FTSE 100 stalwarts such as Diageo, Rio Tinto, and Unilever. I am attracted by the fact that the trust does the share picking, so I could simply sit back and enjoy any income it distributes. One risk is that the dividend is fairly thinly covered, so if the companies it holds slashed their dividends, the trust may struggle to maintain its own payout level. Another financial company on my passive income ideas list is Jupiter Fund Management. As the name suggests, Jupiter manages funds. The name is already familiar to many retail investors who buy into its funds – but I think Jupiter itself could be an attractive addition to my portfolio for its passive income stream. The company yields 6.3%. One risk is growing competition from low-cost fund providers, which could eat into profit margins. High-yield tobacco company The biggest holding in the City of London Investment Trust is British American Tobacco. The tobacco giant, which owns brands such as Lucky Strike, would also be one of my passive income ideas. Tobacco companies like BAT tend to be highly cash generative. Its 7.4% yield is among the highest of any FTSE 100 company. But BAT had over £40bn of net debt on its balance sheet at the end of last year. I see a risk that cash generation could be diverted to repay debt rather than paid out as dividends in future. The post 5 passive income ideas I’d consider appeared first on The Motley Fool UK. The Motley Fool UK's Top Income Stock… We think that when a company’s CEO owns 12.1% of its stock, that’s usually a very good sign. But with this opportunity it could get even better. Still only 55 years old, he sees the chance for a new “Uber-style” technology. And this is not a tiny tech startup full of empty promises. This extraordinary company is already one of the largest in its industry. Last year, revenues hit a whopping £1.132 billion. The board recently announced a 10% dividend hike. And it has been a superb Motley Fool income pick for 9 years running! But even so, we believe there could still be huge upside ahead. Clearly, this company’s founder and CEO agrees. Learn how you can grab this ‘Top Income Stock’ Report now More reading The Tullow Oil share price is back above 60p. Here’s why I’m still not keen The Barclays share price is rising: should I buy now? Will the Ilika share price recover? Shares to buy: a FTSE 100 stock for my ISA How I’d invest £500 in UK shares today christopherruane owns shares of British American Tobacco and Unilever. The Motley Fool UK has recommended Diageo, Morrisons, 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.
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  33. ZKIN 15m Outlook (14/04/2021 - Reddit Stock Market)
    Since the last outlook the price of ZKIN has gained almost 7% in value as it's being traded back above $7 per share. A first bull signs start to show up as volume has increased sharply today. We've already had the same amount of trades today by now, that we had yesterday! A volume spike led to a price spike to $8 per share. A strong buying demand has arrived as the price broke above $7.00 and change the overall trend to uptrend. The price failed to hold at $8 which would be expected from such sharp move from a downtrend, but it has managed to find a support at 20 and 50 EMA's, which means that the 15m uptrend is likely to begin! This will lead the long almost 6 days long 15 minute downtrend which made the price of ZKIN very oversold. Same as before. This is no more any early optimism, but it seems like another uptrend as we've expected is forming. The key support is located at $7.00, where the EMA's are located. A break below this support would lead to a prolonged downtrend, which ZKIN's price can't really handle in order to remain in overall uptrend. Maybe one more dip, but it's unlikely. RSI continues to see some bullish pressure as it's in a trend of higher highs and lows. A break above 60 as you may know by now, will bring bullish momentum, pushing the price back to $8 area possibly. MACD is in a buying wave with no further plans, that she would like to tell us on this time frame. Overall trend has changed into an uptrend! We now expect, based on our continuous analyses and outlooks, the price of ZKIN from now on to move higher, in a trend of higher highs and higher lows.   submitted by   /u/BreianaOlson [link]   [comments]
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  34. Recovery plan: how do you plan on recovering this week, IF the market turns green? (08/03/2021 - Reddit Stocks)
    As someone who swings/day trades, I couldn't handle last week, and simply just didn't trade. I figured that share prices are so low as of now, it'll be pretty easy to get back in on them. However, I began trading in a bull's market, I don't know much about recovery plans and how to, "Get back in" to the market. Chances are, I'll just buy back into my positions at an already discounted price and keep it simple. Any thoughts on how you would make this approach?   submitted by   /u/fatboywonder12 [link]   [comments]
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  35. Where will the IAG share price go next? (30/04/2021 - The Motley Fool UK)
    Back in October, the IAG (LSE: IAG) share price languished at around 95p. Had I taken the opportunity to buy stock in the FTSE 100 airline back then, I’d have more than doubled my money by now!   But I don’t regret my decision to steer clear. At the time, IAG was under the cosh as a result of ongoing travel restrictions. The more deadly second wave of the coronavirus was also about to hit the UK, ushering in a second national lockdown. Buying shares when the outlook is bleak is one thing. Buying shares in a company when the outlook is almost completely unknown is another thing entirely. Since then, of course, we’ve had news on successful vaccines and the gradual unlocking of economies. So, where does the IAG share price go from here? And will I finally be buying? IAG share price: only way is up? There are a few reasons to suspect the only way is up. Perhaps more pertinent to IAG was last weekend’s statement from European Commission president, Ursula von der Leyen. She said that flights from the US to Europe may be allowed to happen in the summer. The only caveat is that all passengers must have received their vaccinations.   This is clearly encouraging news for trans-Atlantic carriers like the British Airways owner. Should Boris Johnson announce something similar in the lead-up to Joe Biden’s visit to the UK in June, the IAG share price could jump. From a more general perspective, the reaction to the reopening of high streets across the UK also demonstrated how keen people are to get out of their homes and spend. Sure, a holiday abroad isn’t the same as taking a trip to the shops. However, it does suggest that the psychological wounds from the coronavirus may not take as long to heal as first thought. This optimism may also continue to push more cautious investors back towards the airline sector. Reasons to be cautious Of course, at the moment, we can only speculate. Markets that are still skittish about the coronavirus more than a year after crashing is evidence that nothing can be taken for granted. I also can’t get away from the view that airlines are notoriously poor returns due to the huge amounts of capital required to keep planes maintained and in the air. Take into account the fierce competition (a busted airline is quickly replaced) and it’s not hard to see why top fund managers such as Terry Smith refuse to go near stocks like IAG.   I’d also need to be comfortable with the lack of dividends. Even if these were to be reinstated soon (and I don’t think they will be), there’s likely to start from a very low level. Why bother when there are far better income-generating stocks in the FTSE 100? Staying grounded The IAG share price is now close to the ‘high’ seen in June 2020. Whether this momentum continues in May is tricky to say. On reflection, I still won’t be joining the queue to buy. As a long-term investor rather than a trader, I’m led by a company’s fundamentals. And I just don’t like all that debt on IAG’s balance sheet. The rally in the IAG share price may be far from over, but I’m keeping my feet on the ground. 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 The IAG share price is up 20% in 2021. Have I missed my chance? Why I like the easyJet, IAG, and Wizz Air shares now As the IAG share price continues to rise, here’s why I’d invest £3k in the airline The International Airlines Group (IAG) share price has been rising. Should I buy the stock now? Forget easyJet and IAG shares. I’d buy these ‘reopening’ stocks Paul Summers 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 Where will the IAG share price go next? appeared first on The Motley Fool UK.
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  36. What is Johnson and Johnson (JNJ) doing? (13/04/2021 - Reddit Stocks)
    So, if you live in the United States you’ve probably heard that the JNJ COVID-19 vaccine is being paused due to blood clot concerns today. It also wasn’t too long ago when there was also an asbestos concern with their talcum powder, where litigation ensued and JNJ had to payout. I sold JNJ at $162 a while back, as I thought my average price was too high and decided to get in at a lower price. The price of ~$157 right now seems nice, but even I’m beginning to lose trust in the company as a whole. Any people who are invested or have stayed away wish to share their opinions?   submitted by   /u/maximalsimplicity [link]   [comments]
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  37. Should I buy Lloyds Banking Group shares now? (14/02/2021 - The Motley Fool UK)
    Last September, the Lloyds Banking Group (LSE: LLOY) share price bottomed out just below 25p. So today’s near-37p price represents a fair advance over a period of just under five months. But scope back a full year, and Lloyds was about to tip into its sharp plunge from around 57p. So the stock has yet to regain even half the ground it lost when the pandemic hit the markets. Earnings set to bounce back Meanwhile, City analysts expect both earnings and the shareholder dividend to bounce back by percentages measured in three figures this year. And it’s difficult to make a case for the valuation looking expensive. For example, the price-to-asset value is just over 0.5. And the forward-looking earnings multiple for 2021 is just below 11. On top of that, if the dividend payments arrive as predicted this year, the forward-looking yield is around 4.4%. If economies continue to recover because vaccines beat back the pandemic, I think there’s potential for further business recovery at Lloyds. And the stock will likely anticipate that recovery by moving higher first. But because Lloyds runs such a cyclical business, it’s sensitive to the general economic outlook. If the recovery in the economy stalls, I think we’ll see evidence of the deteriorating outlook in Lloyds share price. As well as upside potential, I reckon the rise in the Lloyds share price has increased the downside risks for shareholders. And because of the pandemic, we’ve recently seen how fast Lloyds business can decline if the economic conditions aren’t just right. Because of its cyclicality, I’d never aim to make Lloyds shares a long-term holding in my portfolio. I’m expecting the business and the stock to behave in a similar way it did following the previous big economic shock. Following that credit crunch, the stock bottomed in the spring of 2009. However, by September 2010, the share price was near the top of a trading range it couldn’t exceed. The possibility of a shrinking valuation For almost a decade, earnings edged higher. But instead of the share price rising to accommodate that growth, the valuation contracted instead. Indeed, by traditional valuation measures, Lloyds looked compelling. However, the next big move was the catastrophic collapse in earnings, shareholder dividend and share price because of the pandemic. If it hadn’t been for the pandemic, my guess is Lloyds would still be moving sideways. Meanwhile, its valuation would probably have been gradually contracting while the market waited for the arrival of the next general economic down-leg in the cycle. So right now, I see limited, shorter-term upside potential for Lloyds shareholders followed by lots of downside risk (as before). To me, the inherent cyclicality in Lloyds’ business is the overriding consideration when evaluating the stock. I’ve been banging on about this theme regarding the London-listed banks for years. But my approach has saved me from making some big investment mistakes in the sector. Of course, I could be wrong. Perhaps this time it’s different. We’ll find out more with the full-year results report due on 24 February. 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 Lloyds share price: should I buy in February 2021? The Lloyds share price is falling again! Should I take advantage and buy? The Lloyds share price: 2 reasons I’m keen right now, but 2 big risks I’d note UK share investing: why I’d ignore Lloyds and buy these 2 cheap FTSE 100 shares Lloyds’ share price: here’s what concerns me Kevin Godbold has no position in any share mentioned. The Motley Fool UK has recommended Lloyds Banking Group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Should I buy Lloyds Banking Group shares now? appeared first on The Motley Fool UK.
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  38. As the Amigo share price soars, is it too late for me to buy? (10/05/2021 - The Motley Fool UK)
    The Amigo (LSE: AMGO) share price has performed excellently in 2021 so far, rising by over 200%. Such a strong performance has been driven by more shareholder optimism. Nonetheless, as a subprime lender, Amigo is extremely exposed to risk. This has been made worse by customer complaints and worries over the company’s liquidity. Its current price of 26.5p is therefore still a long way off its 2019 price of 270p. As such, is there a chance that the stock can claw back more of these losses, or has the 2021 share price rise now come to an end?   The subprime lending industry As a subprime lender, Amigo lends to customers with very poor credit histories who cannot borrow from a traditional bank. Although these loans generate large amounts of interest, defaults are also common. This means that the guarantors often have to pay off the loans, and this has led to a large number of consumer complaints. Coronavirus has also had a negative impact on the subprime lending industry and the Amigo share price. Indeed, as of January this year, Covid-19-related payment holidays had been granted to over 63,000 customers. As the company only had 156,000 customers at the end of 2020, it is evident that the pandemic has had a severe impact on a large number of Amigo customers. This also led to a pause on all new lending until 2021, resulting in decreased revenues. Furthermore, it has recently been reported that another major name in the sector, Provident, is getting rid of its subprime lending arm. Although this may reduce competition for Amigo, it shows that subprime lending is not a healthy industry right now. Consumer complaints and scheme of arrangement Amigo has also been inundated with mis-selling claims after customers accused the firm of failing to carry out basic financial checks. Unfortunately for the company, the financial ombudsman has found in favour of the customers in the majority of cases. This has led to it applying for a scheme of arrangement. This plans to cap compensation payments to a maximum £35m and 15% of profits over the next four years. News that the FCA would not oppose the deal has also seen the Amigo share price rise rapidly. Implementing this scheme of arrangement is vital for Amigo’s survival. Indeed, management has warned that without the scheme of arrangement, it will have to file for administration. Such a result would be catastrophic for shareholders, who could be left with absolutely nothing. Has the Amigo share price got further to rise? Fortunately, it seems that the scheme of arrangement is likely to be implemented and this should benefit Amigo greatly. Furthermore, new management also seems keen to “get Amigo back to life again”. Recent insider buying from the CEO and the CFO has perhaps given reason for optimism on this front. It shows that management believes the Amigo share price has further to rise. Nonetheless, I’m not convinced that the Amigo share price will be able to rise much further. The subprime lending industry is evidently struggling and there is the chance that the company will have to file for administration. This makes Amigo shares too risky for me.  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 Will the Amigo share price recover in 2021? Stuart Blair 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 As the Amigo share price soars, is it too late for me to buy? appeared first on The Motley Fool UK.
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  39. Wont let me sell a stock on TD Ameritrade. (15/05/2021 - Reddit Stocks)
    Just like the title says. I bought one share of BRZU etf, held it for a day, and then went to sell it for the ask price, but it doesn’t go through. Am I supposed to sell it at the bid price? It’s $113 but the bid price is $107. How long does it take to sell a share?   submitted by   /u/mikeskeezer31 [link]   [comments]
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  40. Barbeque-Nation share price hits 20% upper circuit for 3rd straight day, up 68% from IPO price (09/04/2021 - Financial Express)
    Rakesh Jhunjhunwala-backed Barbeque-Nation Hospitality share price surged 20 per cent again on Friday to Rs 839 apiece.
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  41. Why is a share price on the market higher than value of the company portion it represents? (03/04/2021 - Reddit Stocks)
    In a very basic sense, stock is purchased for the ownership of a company. It’s price grows on the market following supply and demand, and as such the price of a single share may rise as the value of a company rises and more people want to buy that share than those willing to sell. But why is the portion of a company granted by that share worth less than what it’s paid for? Suppose a company has a book value of $180M and has 100M shares outstanding on the market for $5. Its market cap, which encompasses its intangibles and growth potential is nearly 3x as much as its book value, signaling the market believes the company is and will continue doing well (in theory). Now since a share indicates owning a portion of the company, a single share in this company is worth 0.00000001%, or if the company liquidated its assets today, $1.8; so why would somebody want to buy a share of a company for more than what that share is worth? Is the delta between its intrinsic value and the market value the “mark up” for the current share holder to earn for giving their position away? This brings up the question, if you exclude capital appreciation from the equation, if the share price on the market is more than the intrinsic value it losses at purchase, the hope would be that over time the value of the company grows such that the shares intrinsic value eventually exceeds what you paid for it, right?   submitted by   /u/mahtats [link]   [comments]
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  42. IRCTC share price hits all-time high, surges three times from IPO price; stock may rally up to 40% (04/03/2021 - Financial Express)
    IRCTC share price hit a new record high of Rs 2,014 apiece, rising as much as 7 per cent in the intraday on BSE.
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  43. RIL share price falls for 2nd straight day after Q4 results; charts show it may fall more (04/05/2021 - Financial Express)
    RIL share price fell as much as 1.5 per cent to Rs 1,930 apiece on BSE in intraday deals on Tuesday.
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  44. Lloyds shares vs Deliveroo: which would I buy? (22/04/2021 - The Motley Fool UK)
    There are two UK shares I’ve been keeping a keen eye on over the last few weeks. One of them, Deliveroo (LSE:ROO), is a start-up success story that was at the heart of a much-publicised (and rather disastrous) IPO as it joined the London Stock Exchange at the start of April. The other, Lloyds Banking Group (LSE:LLOY), has a 300-year heritage and has been trading (in its current form) since 2009. But are either of these contrasting UK shares going to make it into my portfolio? Is Deliveroo going to fix its problems? The most worrying thing about Deliveroo is there seems to be no end in sight to its downturn. It debuted down almost 30% on its 390p IPO price. Now, it sits around 232p – a 40% decrease. There are many reasons why the shares are performing poorly. Most obvious is the fact that Deliveroo had benefited from people being unable to leave their homes. With lockdown easing, we’ll likely see UK shares centred on hospitality soar as the demand for home delivery lessens. On top of that, it was simply overvalued. It isn’t currently profitable and has major competitors in two other UK shares, Just Eat and Uber Eats, so there’s no economic ‘moat’ here. In fact, the only unique feature at present seems to come from the poor conditions for its riders. I feel its paths towards rapid growth are mostly hypothetical: one of its competitors leaving the UK, signing up restaurants exclusively, or even another lockdown. Without any of these, I’m not hopeful that its shares can leap ahead fast.  Its Q1 trading update did offer some positivity though and it’s not as if the company is in decline. Deliveroo is actually performing well. The start of 2021 saw 91% more active users and a 114% rise in orders year-on-year. Its goal to reach 66% of the UK population by the end of 2021 is in sight, with more than 60% already covered. It has even successfully partnered with grocery shops for delivery both domestically and internationally. These results are encouraging. But I think there are too many uncertainties that go beyond the numbers to invest any time soon.   The Lloyds share price is rising Lloyds is a very different story. At the moment, it’s one of my favourite UK shares. If its current price of 42p can return to the 62p of two years ago, investors would be looking at a 47% increase. With a convincing P/E ratio of 10.8, £1.4bn profit at the end of 2020 despite Covid, and a strong, consistent and familiar brand, I think this is possible. The bank has also recently resumed dividend payments at a yield of 1.3% after a year in which its dividends were paused. But as with all UK shares, there are a number of reasons I might stay away from this bank. If interest rates stay low, it’ll remain difficult for it to make money consistently. And how will it compete with the rise of digital banks like Monzo? Plus, its dividend yield is considerably less than the FTSE 100 average of 3.06%, and is therefore much less enticing. These downsides aren’t putting me off yet, though. I’ll be keeping a keen eye on Lloyds’ performance as lockdown comes to an end and likely making an investment myself. “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 Should I invest in Lloyds now as its share price dips? Should I buy Lloyds shares now as a future potential dividend star? Barclays share price versus Lloyds share price: which would I buy today? After a 15% rise in 2021, is the Lloyds share price heading for a strong recovery? Why I’d forget the Lloyds share price and buy this UK bank share! Dan Peeke has no position in any of the shares mentioned. The Motley Fool UK has recommended Lloyds Banking Group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Lloyds shares vs Deliveroo: which would I buy? appeared first on The Motley Fool UK.
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  45. Is there a way to do a limit sell but ONLY on the way down? (19/05/2021 - Reddit Stocks)
    Let's say I want to invest $100 in a share of a security and I think may rise to, say, 100% of its current value. I would then set a limit sell order at $200 so that when the price crosses $200/share it would trigger a sale. What if I want another, smaller limit sale as a safety at 50% but ONLY once it crosses the price and falls under it. For example, I purchase a security for $100 and I set a limit sell if the price dips below $150 but NOT when it crosses $150 the first time. Is there a way to do this type of limit sell where the price can pass the specified price but will only sell on the way down? Additionally, can I do this at the same time I have another limit sell for 100%, or 200/share? Thank you!   submitted by   /u/Reddspez [link]   [comments]
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  46. The Lloyds share price is falling again! Should I take advantage and buy? (12/02/2021 - The Motley Fool UK)
    The Lloyds (LSE: LLOY) share price has been falling again over the past week. Shares in the lender have declined just over 3% since Monday. It appears that concerns about the group’s exposure to the fragile UK economy are behind the decline.  This decline is just the latest in a string of ups and downs. Over the past six months, the Lloyds share price has increased in value by around 25%. However, over the past 12 months, the stock is down 36%. Over the past five years, it is off 40% excluding dividends.  Put simply, the bank has been a tough investment to hold over the past five years. But, with the outlook for the UK economy improving, should I make the most of the latest decline and buy the shares?  Is the Lloyds share price on offer?  Shares in Lloyds tend to move in tandem with the UK economic outlook. As one of the country’s largest lenders, that’s understandable. If the economy starts to stutter, the bank will likely be one of the first businesses to report a decline in sales and rising loan losses.  I think this is the reason why the Lloyds share price has been so volatile over the past half-decade. Brexit and the coronavirus crisis have been two challenging headwinds for the UK economy. As such, it has been difficult to predict what the future holds for the economy and the country’s largest companies.  However, at least one of these headwinds has now been removed. Brexit has happened, and while some sectors have suffered from the changes, overall, the economy seems to have taken the changes in its stride so far.  That leaves coronavirus. So far, the pandemic’s impact has not been as bad on Lloyds and its peers as initially expected. Unfortunately, we won’t know the crisis’s ultimate impact until it’s over. That suggests to me that this headwind will continue to weigh on the Lloyds share price in the near term.  Mixed outlook It’s difficult to predict how Lloyds will cope in the world after the pandemic and over the long term. It’s impossible to tell what the economy will look like 12 months from now, and how quickly it will recover.  Therefore, while the stock might look attractive after its recent declines, projecting future growth is almost impossible. That makes it difficult for me to say whether it is worth buying the stock today. On the one hand, the Lloyds share price could be a great way to play the UK economic recovery. But on the other hand, if it is impossible to tell what the future holds for the UK economy, it is also impossible to say what the future holds for the bank.  Still, I am cautiously optimistic about Lloyds’ outlook, but I am wary of the risks involved. So, I would buy the stock for my portfolio today, but it wouldn’t be a large position.  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 The Lloyds share price: 2 reasons I’m keen right now, but 2 big risks I’d note UK share investing: why I’d ignore Lloyds and buy these 2 cheap FTSE 100 shares Lloyds’ share price: here’s what concerns me The Lloyds share price is recovering but here’s why I won’t buy back in Why I’d ignore Lloyds and buy other cheap UK shares for my ISA! Rupert Hargreaves owns no share mentioned. The Motley Fool UK has recommended Lloyds Banking Group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post The Lloyds share price is falling again! Should I take advantage and buy? appeared first on The Motley Fool UK.
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  47. $PENN has done +1800% in the last 12 months with a -32% revenue decline year-over-year. How is that 18x share price justified? (21/03/2021 - Reddit Stocks)
    From 2018 to 2019 $PENN had a +47% increase in revenue year-over-year and the share price grew with +38%. From 2019 to 2020, revenue declined to -32% year-over-year and the share price grew with +1800%. Revenue for 2019 was $5.3B. Revenue for 2020 was $3.5B. Is this the new normal? +10 years of growth is already priced in the share price today? Are we buying stocks today based on how they will perform in 2030? Are we today already basing their stock price on the 2031 Q3 Earnings Report? 2032 Q1? This is also just one example of how overvalued some stocks are today. Can anybody make some sense of this? Do you think this will correct itself or is this what the market has become now and this is just how it will be in the future?   submitted by   /u/Berisha11 [link]   [comments]
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  48. How I’d invest £1,000 in FTSE 100 shares now to try to double my money (23/03/2021 - The Motley Fool UK)
    As a child, a popular distraction for me was trying to fold a piece of paper over more than seven times. Each move doubled the thickness of the paper. Within a few moves, it was hard to do as the wad had grown so thick. If I could invest in some FTSE 100 shares that doubled my money in this way, even a fairly modest sum like £1,000 could grow into a much more substantial amount over time. Here’s how I would invest £1,000 right now to aim to double my money. Income reinvestment with FTSE 100 shares One approach to doubling my money would be choose a high yielding share and bank the dividends. I explained how such an approach might work in an article focused on tobacco producer Imperial Brands. But there are other high-yielding shares that I think could help me double my money if I’m patient. For example, FTSE 100 share M&G is currently yielding 9%. That means in the first year of holding the financial services company, I would expect £90 of dividends from my £1k investment. At that rate, I would be on track to double my money from the dividends after 11 or 12 years. If I reinvested the dividends as I went, so that they also earned a high yield, I might get there sooner. However, this might not work out. For example, M&G may decide to lower its dividend rate, or it could cut its altogether. Twelve years is a long time in which the financial services market could be affected by all manner of changes, from fintechs eating into profitability to another financial crisis. To double my money, I’d also need my original stake to maintain its value. Over time, the share price could grow, but if it fell back, I might not double my money overall even with 12 years’ worth of dividends. Growth shares Instead of focusing on income I could seek to double my money by investing in shares I think are underpriced relative to their future growth prospects. Doubling might sound unlikely, but share price movement means it can happen to a wide range of shares over time. In January I identified five UK shares I thought could double this year. One of them, Card Factory, went up 75% in the next several months. Over the past year, it has done even better, more than doubling. But one reason Card Factory has moved a lot is because analysts are so split on its prospects. With high street retail in decline, the future for a chain of card shops could be challenging. If I only had £1,000 to invest, I think I would prefer a company whose future prospects seemed more promising. That is why, instead of smaller companies like Card Factory, I would be more attracted by FTSE 100 shares. Blue-chip growth and income I would be tempted to search for growth and income as a way to double my money. Imperial could yet cut its dividend as smoking declines, for example. But meanwhile I’d bank any future dividends. If tobacco stocks come back into fashion, the share price could rise. The FTSE 100 shares are already up 17% over the past year. By putting £1,000 in now with a 9% yield, I’d hope to double my money in 11 years or so. But if the share price keeps growing, it could be sooner.   “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 This is what I’m doing about the Tullow Oil share price right now! Who is eligible for the stamp duty holiday (and who isn’t)? I’d buy this ‘reopening’ stock on today’s news FTSE 100: these were the best shares to buy in the market crash a year ago! Passive income investing: my 4 steps to go from £0 to £500 a month christopherruane owns shares of Imperial Brands. The Motley Fool UK has recommended Card Factory and Imperial Brands. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post How I’d invest £1,000 in FTSE 100 shares now to try to double my money appeared first on The Motley Fool UK.
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  49. $KOPN to report Q1 earnings May 4 (23/04/2021 - Reddit Stocks)
    $KOPN (Kopin Corp.) will announce their report on May 4. For those who may not know, Kopin (which manufactures VR equipment mainly for the military) has exceeded its last two earnings reports, resulting in a rather generous increase in share price each time. Bit intrigued to see where it goes come the new report. Went back in after making some profit off them back in February, hoping to do the same. Not investment advice   submitted by   /u/TortsIllustrated018 [link]   [comments]
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