Would you invest your money?
73If I had the money.....
***** Disclaimer- I am doing this as an experiment, if you wish to buy the shares do so, but i am not personally investing money or encouraging others to do so! *****
They say "money makes money"in this world of ours, i am not going to preach the ills of living in a capitalist world. I know the alternatives are a lot less desirable, so to have the freedoms and liberty we have now you have to take the rough with the smooth. Another common phrase is "money makes the world go round" we all know that the gravity and orbits of the sun and other planets are responsible for making the world go around, but money really does help.
I am not a bigshot city banker or hedgefund manager and i do not own any shares of any real worth, so this piece is not a pure and fast way to make money off these shares. What i like to believe is i have a bit of foresight into what will probarbly happen in the future, and if you agree with me why not dabble in the markets?. After all isn`t playing the stockmarket the same as betting on a Horse or Football game. We all know money is tight so i am not encouraging you to bet the farm on these companies, but it would be interesting to see if my "tips" as a complete novice in picking these shares actually makes a profit in a years time!
The otherthing of note with this little exercise is that i believe now is the ideal time to make an investement in these companies coming on the back of a really hard and desperate couple of years. We have seen a lot of well known and respected companies either get rescued by the goverments of its host country, companies get taken over by rivals or big brands go under the weight of their own debts and mismanagement!
I have actually researched into these companies on the internet a bit, just to make sure that what i write is accurate and does not come across as a juvenile scribble. That said i am not a master of economics from Harvard,Yale, Stanford, Cambridge, Oxford or Durham! so if my research and suggestions come across as simplistic i will say sorry now.
The formula i am using...
As i am an Enlishman living in the United Kingdom i will obviously have a bias to companies which are British in origin. They on the whole to operate globally so any readers in other parts of the globe will be familiar with the majority of the companies mentioned later. The key factors i have focused on in picking these companies is quite simple, as i said i hold no fiancial qualifications and this is more an exercise than a "Get Rich Quick Scheme".
My factors i take into account are the following...
History: If a company has been around for a good length of time, it has usually got a large and loyal customer base. And has prior results posted on the markets. Many people lost money on the DotCom Industries boom which had notracable track record.
Reputation: Although a bit simular to history, i believe reputation has more to do with the integrity of the administration of the company, and the product or service it stands for.
Debt: Obviously alot of companies have peaks and falls in their business, how much a company is borrowing to maintain its business has an impact on its viability to me. For exampla Soccer clubs in England such as Manchester United and Liverpool are servicing a Debt from the initial takeovers from a few years ago. This effects the amount of reinvestment and growth dramatically.
Potential: Is the company able to exploit new markets with new products or new services. Can a company making artificial snow sell its product to the Inuits to open new markets.
Raid the savings....
Would you invest in BP?
See results without votingRight then here are the companies i would invest in if i had the money to spare..
BP (current price 03/06/10- 445.65 (high of 658.20 low of 411.50)- Ordinary share price
BP has suffered a loss to its share price due to the spill in the USA, its reputation has been effected by the adverse publicity. It is likelly that BP will have to pay damages to help pay for the clean up operation. As a 0-6 months investment i would expect the share price to recover a lot. Expect some fluctuation when announcements are made about the clean up cost. Now maybe the best time to lump some money in on the short term. I would suggest that as a long term investment BP will suffer in 2011 but as an energy provider it does make a lot of money due to the nature of oil supplies.
By November i would expect positive change of share price to be 550.5 approx
I would hypothetically invest in 100 shares at £444.65.
And the next company is....
JD Wetherspoons ( current price 03/06/10 is -437.70(high of 556.00 low of 348.00) -ordinary share price.
Wetherspoons is the biggest UK pub chain established in the late 1970`s and has outlets in over 700 locations. Sluggish sales expected over the summer months, although if the World Cup goes Englands way you could see a boom in sales. Although not a Sports bar, their oulets pick up alot of trade as they are competative and efficient at what they do. Short term expect share price to rise and fall, later part of the year will see increase in sales. Company is well run with company owning a lot of the freeholds to the outlets. Longer term the pub chain could be purchased by bigger foreign owners at a very healthy price.
By November 2010 would expect a modest increase in share price to 470.00
Would expect by 2011 2nd quarter to have price over 500 mark.
I would hypothetically invest in 100 shares at £437.70.
You feel lucky???
Would you invest in JD Wetherspoons?
See results without votingLet the moths out?
Are Barclays a good company to get involved with?
See results without votingAnd Finally.....
Barclays Bank ( current price 03/06/10 is -300.50 ) high of 383.60, low of 259.05 )- ordinary shareprice.
Although Barclays had a bit of a fall recently it has a good reputation in the city, and it continues to generate impressive profits. It is one of the few Banks to not go to the wall or require massive goverment assistance in the Banking Crisis of 2009. I would expect shares to start performing better and would expect the share price to beat its 52week high of 383.60 by end of 2010.
I would again invest in 100 shares at £300.50
I would expect shareprice to be at 370.5 by 2011
Well thats my opinion
These three UK companies have the potential to break their highest share price or to increase it dramatically. I will be interested to see how my predictions turn out. If anyone does follow the Three let me know how it turns out!!
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