Tuesday, 8 March 2016

For Michael 09/03/2016

Finding builders in the ftse 100 is quite difficult ,ie there are none.
Land shares we have three

British Land Company
Land Securities Group
Hammerson .

My favoured of the three is the British  Land Company ,even though they have just raised £500 million.
My estimate of valuation ,was slightly in favour of this one.

April 2013
If you would like a builder , I favour persimmon ,whom are just about to start returning cash to shareholders .All going through on this month`s vote .

As a small builder , I have a high regard for Inland Homes , although not on the ftse350 yet .

Good luck with your decisions ,


Long term Investing ;

              I have as usual based this on history. remember the oil glut of the 50`s & 60 `s .
Neither do I . But , I have a vague recollection of the 70`s .
  This leads me to being a long term believer in the natural gas price upheaval. There are two good shares for this play , one being LNGA for us Brits and UNG for the Americans .Why will gas prices go up . It`s the usual story of too much demand and not enough supply , despite tales of america being inundated by the stuff
and that Britain has huge supplies near Blackpool , by all accounts.
   Everything , as we know to our cost , that once was believed to last forever . Never does . A shame , but true .

   Silver (why silver over gold ). Simple really , silver has industrial use and it`s ooooh so shiny.
Although there is more silver available 17m cubed of gold on the planet . By all accounts ,five times that of silver .
  One always comes back to it`s at present use up and throw away propensity . Obviously , by the time I am long gone this story will have changed . And silver will be as valued as gold , for it`s rarity .

  Enough Said ,



March 2016 ? How did my advice do ?
BLND +20% & dividends
Well Persimmon now double value from £10 to £20 per share plus dividend of £1 .
Inland Homes 25p to current 81p.
LNGA is down 85%
Ung is down 65%
Silver/Gold are down 15 %

Not a great performance you may feel . But my advice would be showing a healthy gain . must do better next time .
Now we have a great opportunity on commodity shares 3OIL  & 3GOL .
Plus LALL , a general commodity play .
That leaves three more we shall keep Persimmon
And add a pharma GSK
And a bank HSBC
I would also like you to add a china index follower , the best I can come up with is YINN , which unfortunately you can not put in an ISA for it is on the US exchanges.
China index today 2800 very very good value .

At today`s prices ;

3OIL                   1
3GOL                 28
LALL                4.40
Persimmon        £20
GSK                  £14
HSBC                £4 .50

We shall recheck in three years time as per usual .

     Good luck
       And May

1 comment:

  1. so what about Euros? Should I buy now before Brexit or after?