July 5, 2021 | |Post a Comment

first_img Our 6 ‘Best Buys Now’ Shares See all posts by Karl Loomes 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. Image source: Getty Images. “This Stock Could Be Like Buying Amazon in 1997” Is the Tullow Oil share price cheap enough to buy? Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement.center_img Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Karl Loomes | Tuesday, 28th January, 2020 | More on: TLW Simply click below to discover how you can take advantage of this. It’s been a tough few months for investors in Tullow Oil (LSE: TLW), its share price standing at about a quarter of the value it held in November. In December its shares plummeted 70% after it reduced its production outlook and announced the departure of both its CEO and Head of Exploration.January has not seen any improvement, kicking the year off with news that drilling results for an offshore well in South America found less crude than expected, making it unlikely to be commercialised. And mid-month, Tullow was forced to downgrade its crude price assumptions and cut its reserves estimates, leading to a $1.5bn write-down.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…In numbers we trustBut Tullow has now begun to suffer a problem far worse for its shares than write-downs and changes to production estimates – falling confidence. Investors are reliant on a company’s financial reports to try to gauge its fair value as an investment. When estimates shift by such huge percentages, it raises questions.At first glance, the major question arising from these kinds of things is “was management overoptimistic?” But of course, it is the nature of estimates, as well as accounting practices, that even when adhering to all standards and realistic beliefs, they rarely prove to be perfect.The fact is, these kinds of changes to numbers are more of a problem because they show us how the ‘sausage’ is made. Oil companies need to make predictions not just for reporting purposes, but also as an entire base for their businesses. Sometimes these predictions will prove wrong.Tullow’s $1.5bn write-down was the result of a $10 a barrel reduction in its long-term price forecast, not because the actually price of crude dropped $10. Even the 70% drop in its shares in December was caused by a reduction in its expected production, not what it was currently producing — a technicality I know, but still…Oil companies are not alone in having to make such forecasts of course, but to a certain extent, one could argue the forecasts themselves will have a more fundamental impact on an oil firm than other industries.How soon we forgetThe good news for investors and oil companies is that human beings soon forget the past, at least selectively. Investors and analysts have no real choice but to use and rely on the financial information that companies provide them with – that’s a key component of how the stock market works (along with technical analysis and market psychology).I think in the case of Tullow Oil, this means that any scepticism investors have over its estimates in recent months, will fade back to a normal level if the company isn’t forced to make any similar downgrades in the future. Taken in this context, Tullow’s current share price could be seen as a bargain.Production estimates may have been cut, for example, but this year’s levels are still expected to sit between 70,000 and 80,000 barrels per day. Likewise, its profit expectations may be 35% lower than in 2018, but this is still a staggering £700m. I haven’t been too optimistic on Tullow’s future generally speaking, but I may be starting to see things in a different light. Karl Loomes and The Motley Fool UK have 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. Enter Your Email Addresslast_img read more

July 5, 2021 | |Post a Comment

first_img Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Image source: Getty Images Don’t forget the State Pension! But I’d do this as well for a happy financial retirement Kevin Godbold | Monday, 24th February, 2020 See all posts by Kevin Godbold Enter Your Email Address 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.center_img Our 6 ‘Best Buys Now’ Shares Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Simply click below to discover how you can take advantage of this. It’s easy to forget all about the State Pension and assume that it will take care of itself. But, sadly, not everyone will get the full State Pension when they retire because it depends on your National Insurance record.It’s worth checking the government website to see where you stand with your State pension and to find out how many qualifying years of paying National Insurance you have under your belt.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…It’s common for people to skip a year because of things such as low earnings, unemployment and illness. But in many cases, you may be eligible for National Insurance credits, so it’s important to make sure you get them if you’re entitled because it will keep your National Insurance record complete.You can also pay voluntary National Insurance contributions to make up for any years you didn’t qualify, if you want to. And that could be a good idea because the ‘investment’ would be relatively risk-free and backed by the government.Building a second retirement fundBut I’d also aim to build a second retirement fund and, for me, the best way to do this is by investing in the stock market. I’m a big fan of shares and share-backed investments because, over the long haul, they’ve outperformed all other major classes of asset, such as cash savings, bonds and property.You only need to look at the long-term price chart of London’s lead FTSE 100 index to see how well shares can perform. Since the Footsie started in January 1985, it’s up almost 650%. And you don’t even need a complicated investment strategy to harvest decent returns from the stock market. For example, you could put regular money into a low-cost index tracker fund that mechanically follows an index such as the FTSE 100.If you do that, as well as gains from any rises in the index, you’ll also receive a regular stream of shareholder dividends. And if you choose the accumulation version of your fund, rather than the income version, your dividends will automatically be ploughed back into the fund for you. In that way, your dividends will be compounding, and the effect of that will likely lead to your overall investment out-performing the index as it shows on the chart.The choices are plentyEffective investing can be that simple. You can choose between many index tracker funds or managed funds, and you can even invest in a few carefully chosen shares of individual companies. I would be inclined to spread my money between trackers that follow several indices, such as the FTSE 250 and America’s S&P 500, as well as the FTSE 100.And I’d shelter my investments from tax by holding them in a Stocks and Shares ISA or a Self-Invested Personal Pension (SIPP). Over time, it’s possible for a well-diversified portfolio of shares and share-backed investments to compound nicely. And if you invest regularly for decades, there’ll probably be a good chance you can build a pot large enough to double your income in retirement when added to the State Pension. Good luck in your investing journey. Kevin Godbold has no position in any share mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. “This Stock Could Be Like Buying Amazon in 1997”last_img read more

July 5, 2021 | |Post a Comment

first_imgAnd that’s before factoring in the impact of recession – even if, as forecasters hope, the downturn is sharp, but short.The next two or three years, in short, are likely to be challenging.Investors’ secret weaponFrom an investment point of view, figuring out a response is tough. What has been startling is the pandemic’s impact on so many industries. A 34% quarter-on-quarter contraction in GDP for the three months ending 30 June? It’s incredible, but that’s the figure from the Office for Budget Responsibility.And even though it is currently forecasting a sharp recovery in the third quarter, just as startling is its estimate of a 13% year-on-year overall contraction in GDP for 2020. To put that in context, that’s far worse than the financial crisis of 2008-2009, or either world war – or, for that matter, the Spanish flu epidemic of 2018. See all posts by Malcolm Wheatley No, I’m not talking about cabernet sauvignon. I’m talking about diversification.Think differentlyPut simply, diversification is how we spread risk. Because right now, in my judgement, now is not the time for highly concentrated portfolios. Our 6 ‘Best Buys Now’ Shares It may seem trite to say so, but a sustained period of lockdown is likely to leave a lasting impression on both business behaviour and consumer behaviour.E-commerce, for instance, will have received quite a fillip – and Amazon won’t be the only beneficiary. Up to this point, my wife and I had never bought online groceries, although we’d dabbled with veg boxes and wine deliveries. But across the country, thousands of people – just like us – are discovering just how convenient home delivery can be. The public sector deficit? Let’s not even go there.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Pain pointsRight now, most investors are nursing heavy hits to their portfolios. As I write these words, the Footsie is down around 2,000 points from its mid-January levels. Meanwhile, gilt yields and interest rates are on the floor. Across a range of its savings accounts, banking giant HSBC is paying interest of just 0.01%.E-commerce is the futureAs I say, the futurologists are hard at work. And to be sure, post-coronavirus, the world will be a very different place. So it’s worth reminding ourselves of investment’s ‘secret weapon’ – the tool that we have available to us to help us through times of extreme uncertainty. It’s not without irony. Back in the 1950s, when I was growing up, home delivery was much more the norm, and supermarkets were the brave new world. Instead, it’s a time for broadly based portfolios – maybe stretching across different countries, but certainly stretching across different industries, different sectors of the economy, different companies, and different investment paradigms.‘Investment paradigms’? By that, I mean this: if you’re a growth investor, buy a few income shares. If you’re an income investor, leaven the portfolio with a few growth shares. 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. The forecasters and futurologists are already hard at work – even though most of us are still grappling with the grim reality of the present. No longer: round here, a local butcher delivers meat, but in a refrigerated van, not on a bicycle.Business-as-usual won’t be business as usualBusiness? Many businesses are shuttered, their employees furloughed. It seems reasonable to assume that not all will re-open. Some retailers have already called in the administrators. Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Income investors – like me – are also seeing huge cuts to dividend income. Again, as I write these words, almost a third of each of the FTSE 100 and FTSE 250 constituents have announced a suspension or reduction in their dividend payments to shareholders. In short, it’s time to take a long hard look at what you own, and ask a question that’s all too-rarely asked. Not: ‘What do I own?’, but ‘What don’t I own?’ “This Stock Could Be Like Buying Amazon in 1997” Simply click below to discover how you can take advantage of this. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Put another way, it’s no surprise to see cinemas, pubs and restaurants shuttered. But it has been surprising to see the extent of the impact on other industries: banking, insurance, utilities, manufacturing, commercial property, and defence, for example. Enter Your Email Address Across the country, huge numbers of people are discovering the realities of working from home. Video-conferencing has never been more popular. And again, it seems reasonable to assume that some businesses will permanently re-think their need for office space. Working from home won’t become the new normal, but smaller offices might. Coronavirus: it’s time to wield investors’ secret weapon Malcolm Wheatley | Monday, 20th April, 2020 Image source: Getty Images last_img read more

July 5, 2021 | |Post a Comment

first_img Our 6 ‘Best Buys Now’ Shares Harvey Jones | Saturday, 23rd May, 2020 Enter Your Email Address Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Simply click below to discover how you can take advantage of this. FTSE 100 stocks are trading at low valuations today, but many investors will be sceptical. Although share prices have rebounded since the March stock market crash, the UK is heading into a recession. The next stage of the FTSE 100 recovery could take longer.Despite that, today looks like a buying opportunity for long-term investors. If you’re looking to fund an early retirement, this could help you get there. Buying FTSE 100 shares in a tax-efficient manner through a Stocks and Shares ISA is still a great way to build wealth.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…FTSE 100 recoveryInvestors looking to buy cheap FTSE 100 shares must take a long-term view. The coming months are going to be bumpy, as the nation emerges blinking from its lockdown. Many companies will collapse. Millions could lose their jobs. We live in unprecedented times.You have to balance these risks against the potential rewards of investing in the FTSE 100. History shows the best time to buy is typically the moment of maximum uncertainty. You will benefit when share prices bounce back.Naturally, you cannot fund an early retirement by investing just £2k. Building a portfolio is a long-term project. The key is to invest whenever you have money to spare. If share prices are down, as they are now, all the better. Then invest more, next time you have funds at your disposal.The earlier you start investing in the FTSE 100, the better. That way your money has longer to grow. Don’t expect to find the perfect moment to buy. If you hang around waiting for another crash, you could be hanging around for a long time.The FTSE 100 may dip in the short run, but over the long term, investing in the index should boost your chances of building enough money to enjoy an early retirement.Plan your retirementYou need to pick your shares carefully right now. Some FTSE 100 companies are still in shutdown. Many will suffer major losses. They will take time to recover. Some won’t.During the crash, strong FTSE 100 companies were sold off with the weak. This is the ideal time to buy them, if you pick your targets carefully. Look for companies with strong balance sheets, reliable revenues, dominant market positions, low debt, and the ability to bounce back when the lockdown is over.Many will also resume their dividends, helping you generate the income you need to enjoy retirement to the max.Stocks and Shares ISAI would always buy FTSE 100 shares using a Stocks and Shares ISA. There’s a choice of platforms, which are cheap, simple and flexible. Better still, you’ll pay no income tax or capital gains tax on your returns, for life.The FTSE 100 will take time to recover. But history suggests it’ll get there. Then climb to new heights.  “This Stock Could Be Like Buying Amazon in 1997” Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee.center_img £2k to invest for retirement? I’d buy cheap FTSE 100 stocks in an ISA today 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. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Image source: Getty Images. 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. See all posts by Harvey Joneslast_img read more

July 5, 2021 | |Post a Comment

first_img Our 6 ‘Best Buys Now’ Shares Image source: Getty Images Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. The FTSE 100 has experienced a rebound over recent weeks that has helped it to recover a large portion of the ground lost in the market crash.Despite this, the index still contains a number of companies that appear to offer wide margins of safety. Although they may experience challenging operating conditions over the short run, they could deliver successful recoveries over the long term.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…As such, buying a diverse range of FTSE 100 stocks could be a sound move in advance of a likely market rally over the coming years.FTSE 100 valuationsAlthough the FTSE 100 may have made gains over recent weeks, a number of large-cap shares appear to be trading at attractive prices. For example, sectors such as banking, retail, housebuilding and consumer goods contain high-quality businesses that are trading at a discount to their 2020 starting prices. They have the potential to deliver improving financial performances over the coming years that could catalyse their share prices.Of course, in the near term, many of those businesses faces challenging operating conditions. Weak consumer sentiment and an uncertain economic outlook may impact negatively on their prospects. But, through buying financially-sound companies while they trade at low prices, you could generate high returns in the coming years as the FTSE 100 recovers.Market recoveryWhile there is no guarantee that any FTSE 100 share will recover after its recent decline, the past performance of the index suggests that a market rally is likely.For example, a rally has occurred after every previous market crash and bear market during the FTSE 100’s 36-year history. Sometimes it has taken the index a matter of months to recover from its downturns, while in other cases it has taken years. However, by investing following a market crash and prior to a market rally – when share prices continue to offer good value for money – it is possible to benefit from improving investor sentiment and growing bottom lines.Through diversifying across a wide range of sectors, you can increase your chances of taking part in the likely FTSE 100 rally over the coming years. Diversifying may reduce your exposure to sectors that continue to struggle, and also broaden your capacity to benefit from surprising growth prospects in a range of industries.Tax efficiencyA simple and effective means of capitalising on the FTSE 100’s recovery potential is through opening a Stocks and Shares ISA. They are cheap to set up and can be completed in a matter of minutes online. They offer tax efficiency, and could help you to build a larger nest egg over the long run compared to a bog-standard sharedealing account. Doing so may boost your financial prospects and allow you to benefit from the FTSE 100’s long-term recovery potential. Don’t waste the stock market rally! I’d buy cheap FTSE 100 shares in an ISA today Simply click below to discover how you can take advantage of this. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement.center_img Peter Stephens | Sunday, 7th June, 2020 | More on: ^FTSE Enter Your Email Address “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. Peter Stephens 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. See all posts by Peter Stephenslast_img read more

July 5, 2021 | |Post a Comment

first_imgForget gold and Bitcoin. I’d buy cheap FTSE 100 shares in an ISA after the market crash Peter Stephens | Saturday, 13th June, 2020 | More on: ^FTSE Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. 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. Simply click below to discover how you can take advantage of this. “This Stock Could Be Like Buying Amazon in 1997” Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Our 6 ‘Best Buys Now’ Sharescenter_img Enter Your Email Address I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Past performances of the FTSE 100 shows that, like any asset, the best time to buy shares has been during periods of decline, such as those following a market crash.The challenge in implementing that strategy is that risks are often at their highest level during such periods. As such, many investors may seek other assets that are outperforming equities in the short run, such as gold and Bitcoin.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…However, over the long run, a diverse portfolio of FTSE 100 shares could offer a higher relative return. Especially when purchased in a tax-efficient account such as an ISA.FTSE 100 buying opportunitiesThe track record of the FTSE 100 includes a number of market crashes similar to the one seen earlier this year. Risks to economic growth can quickly cause investor sentiment to weaken, which has the potential to rapidly cause a decline in stock prices.Clearly, it’s only afterwards that investors can pinpoint the lowest price level during such declines. However, buying shares while risks are high has historically been a sound means of accessing low valuations.Since the FTSE 100 has an excellent track record of recovery, buying companies while they trade at low prices can produce relatively high returns. The index has always recovered from its various crashes, corrections, and bear markets to produce new record highs. Therefore, a strategy that seeks to use the market’s cyclicality to your advantage could prove to be highly effective in the long run.Portfolio risk/rewardsOne of the main advantages of investing in FTSE 100 shares is the capacity to diversify. Although most stocks trade in line with the wider market in the short run, over the long run each company offers different return and risk profiles.For example, utility companies are likely to experience a different share price trajectory than airline stocks over the coming years. But both could be worth holding in a diverse portfolio of FTSE 100 shares.Therefore, it’s possible to build a portfolio with low company-specific risk, as well as an attractive return outlook over the long run. Certainly, a portfolio of large-cap shares may experience a challenging short-term period due to economic risks. But, over the long run, it can produce attractive returns.Considering other optionsClearly, Bitcoin’s recent doubling in price and gold’s surge towards a record high are likely to cause many investors to consider purchasing them.However, the FTSE 100 has a long track record of recovery that means it could deliver higher returns than the precious metal as investor sentiment improves. And, with Bitcoin having an uncertain future as well as a short track record, it appears to be a very high-risk asset. Certainly relative to a diverse portfolio of FTSE 100 shares that are likely to recover over the coming years. Peter Stephens 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. Image source: Getty Images. See all posts by Peter Stephenslast_img read more

July 5, 2021 | |Post a Comment

first_img2015 percentage of revenue2020 percentage of revenue Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. James J. McCombie 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. EBIT Margin5%2% Net Profit Margin4%1% Simply click below to discover how you can take advantage of this. “This Stock Could Be Like Buying Amazon in 1997” International Parcels17%29% Our 6 ‘Best Buys Now’ Shares UK Parcels34%34% Royal Mail is delivering fewer letters and its international operations are becoming more important. But look at how margins and return on equity have changed, in the table below, as a result of delivering less mail and more parcels in the UK and abroad. James J. McCombie | Thursday, 25th June, 2020 | More on: RMG Is the Royal Mail share price now cheap enough for an investor to buy? UK Marketing Mail13%6%center_img UK Operations Total83%71% 20152020 Royal Mail (LSE: RMG) announced disappointing 2019–20 results today. Profits came in at £161m, down from £175m last year. Investors sold their shares in response, driving the price down by nearly 12%. Royal Mail’s problems did not start this year or last. Profits in 2015 were £328m, and they have gone pretty much straight down since then. The share price has not fared any better, as it was 617p in February 2014 and is 75% lower today. However, after today’s big slump, an investor might be wondering if Royal Mail shares are cheap enough to be worth buying. I am not convinced they are.To be cheap enough to justify taking the risk, there has to be the hope of a turnaround. I think that the cause of Royal Mail’s problems will not go away.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Delivery issuesWhen you look at the table below it is clear to see how the revenue sources at Royal Mail have changed over time. This change in revenue sources lies at the heart of the issues facing the company. 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. Enter Your Email Address I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Image source: Getty Images. Return on Equity9%3% See all posts by James J. McCombie Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Earnings before interest and taxes (EBIT) and net profit margins were a paltry 5% and 4% in 2015, and have slumped to 2% and 1% respectively in 2020. Return on equity (ROE) was an uninspiring 9% in 2015 and has fallen to just 3% in 2020.Royal Mail’s management stated today that Covid-19 had accelerated the revenue trends. Those revenue trends appear to be driving profitability, and shareholder returns, lower. Royal Mail’s monopoly on mail does not extend to parcels, where it faces stiff competition. Distribution costs as a percentage of revenue have grown from 19% in 2015 to 26% in 2020.Bargain or not?So, unless things change these trends look set to drive Royal Mail into reporting a loss. In fact, change is coming. Management today said that Royal Mail would be axing 2,000 management jobs to cut its wage bill, slashing capital expenditure, and cancelling next year’s dividend in response to today’s reported slump in profits. The company is also negotiating its obligation to deliver letters at a uniform price six days a week.The question is whether potential investors should be hopeful about the impact these changes will have. Royal Mail has been transforming its operations, at a cost of £719m over the last five years, but has failed to improve profitability. Being able to charge more to deliver letters at the weekend won’t be much help, as letter volumes are falling.Parcel delivery looks to be a fiercely competitive business, and Royal Mail is becoming ever more dependant on it as letter volumes fall. A cost-saving drive has so far failed to produce any tangible improvement, and I cannot think of a reason why the new one will. This stock might not pay a dividend for years and could soon start reporting operating losses. For me, at least, the Royal Mail share price is still not cheap enough to buy. UK Letters36%31%last_img read more

July 5, 2021 | |Post a Comment

first_img 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. Image source: Getty Images. Kevin Godbold has no position in any share mentioned. The Motley Fool UK has recommended GlaxoSmithKline 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. Forget Lloyds Bank shares! I’d buy this FTSE 100 5% yielder instead Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. “This Stock Could Be Like Buying Amazon in 1997” Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Simply click below to discover how you can take advantage of this.center_img Our 6 ‘Best Buys Now’ Shares Kevin Godbold | Monday, 27th July, 2020 | More on: GSK LLOY It’s been an exhausting and frustrating journey for holders of Lloyds Banking Group (LSE: LLOY) shares over the past few years.Those buying the stock to benefit from a hoped-for long recovery period after the credit crunch and great recession have been largely disappointed. And now, to cap it all, the bank has axed its dividends in the wake of the coronavirus pandemic.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…The problems with Lloyds sharesI admit it’s not Lloyds’ fault. The entire banking industry in the UK came under pressure from regulators to cancel dividend payments for the remainder of 2020. And that adds up to around £13.5bn snatched from income-seeking investors across the whole sector.However, dividends aren’t the only problem with Lloyds’ shares. The underlying banking business is as cyclical as businesses get. It’s no surprise that the stock was one of the biggest plungers in the spring stock market crash.But if you are into cyclical investing, there’s a good case for the shares being a decent buy now. Indeed, the price-to-book rating is below 0.5. Earnings have slumped this year after a long period of annual rises. The share price is on the floor. And the dividend is toast. Theoretically, there isn’t a better time to buy the stock than right now.But have you the stomach for it? I haven’t. Rather than thinking of a dark horse, I view Lloyds as a dog when it comes to its investment potential. Sure, it could lead the market higher in the next stock market bull run. After all, bank shares are ‘supposed’ to be among the first into and the first out of recessions. But a cyclical stock like Lloyds would only ever be a relatively short-term trade for me, to catch the next up-leg.But Lloyds’ credentials as a serial-disappointer remain strong. I’d rather ditch the stock completely and look for dividend survivors of this crisis. When I find them, I’m likely to invest for the long haul and allow the process of compounding to build my investment over time. One decent candidate is pharmaceutical giant GlaxoSmithKline (LSE: GSK).Why I think value is buildingThe company hasn’t raised its dividend for a long time, but it hasn’t cut it either. Meanwhile, revenue earnings and cash flow have been generally drifting upwards for years, albeit slowly. And the pharmaceutical sector is known for its defensive qualities. Indeed, medicine consumption tends to be a steady thing uncorrelated to the ups and downs of the economy.To me, GlaxoSmithKline looks like it’s well placed to keep on churning out those shareholder dividends for decades to come. Recent restructuring plans and a steady stream of positive announcements keep me optimistic about the future of the business. The dividend may be flat, but I think value is building in the business.With the share price near 1,575p, the forward-looking dividend yield for next year sits just above 5%. And the earnings multiple is a modest-looking 13 or so that year. I’d buy the stock right now. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Enter Your Email Address See all posts by Kevin Godboldlast_img read more

July 5, 2021 | |Post a Comment

first_imgSimply click below to discover how you can take advantage of this. Anna Sokolidou | Wednesday, 19th August, 2020 | More on: JET OCDO Image source: Getty Images. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Top UK shares at bargain valuations are really hard to find these days. For some of the shares that are trending now, I’d wait for another stock market crash to buy. I’m sure that I won’t have to wait long – there’ll be another stock market crash pretty soon. Stock market crashWe have all seen the news about Covid-19 restrictions being put back in place. For example, the UK recently decided to quarantine travellers from Spain, France, and Sweden. Things like this are going on all over the world right now, adding to the uncertainty created by the pandemic. It looks pretty obvious to me that if this continues, the recession will last for ages.    5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…But as bad as that sounds, it’s not the only problem the world faces right now. One of the largest risks investors have to deal with is the US election. Even more important for UK investors are the Brexit negotiations. Although there is hope that the deal will be agreed next month, there are still plenty of potential stumbling blocks, including fishing rights and competition rules. In other words, there are many reasons for a stock market fall.But what UK shares will be involved? Well, I think some investors will end up trimming their stakes even at the most stable firms to raise cash. The March correction showed the effect of this. Not only did the companies with poor balance sheets fall from grace – the companies with strong finances also plunged in value.But as we know, some companies benefitted from the lockdown. Their shares regained their losses and climbed to new highs. Something similar might actually happen again, I believe. Top UK sharesMy colleague Peter Stephens wrote that the risk/reward ratio isn’t particularly attractive for many FTSE 100 companies. And I agree with him. Some time ago I wrote about overvalued high-tech companies. This particularly seems to be the case with the US stock market. But I consider Ocado (LSE:OCDO) and Just Eat Takeaway (LSE:JET) to be firms with huge profit potential during lockdowns. I think we’ll have even more restrictions due to a second wave of Covid-19. That’s why the food delivery demand will stay high for a while. So, I think Ocado and Just Eat will be the first to benefit.But the current valuations of these shares seems excessive. I don’t just mean how much these two companies’ stocks have surged. I also mean their valuation multipliers (the price-to-earnings and price-to-book ratios), earnings, and revenue histories. Neither firm was particularly profitable before the pandemic. But after the stock market crash their shares have surged tremendously. The truth is that their market positions are leading. I believe they will be great buys after another stock market correction.  Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. See all posts by Anna Sokolidou Anna Sokolidou has no position in any of the shares mentioned. The Motley Fool UK has recommended Just Eat Takeaway.com N.V. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.center_img Our 6 ‘Best Buys Now’ Shares Top UK shares I’d buy after the stock market crash – Part 2 “This Stock Could Be Like Buying Amazon in 1997” Enter Your Email Address 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. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement.last_img read more

July 5, 2021 | |Post a Comment

first_img The high-calibre small-cap stock flying under the City’s radar Or you could try this exciting opportunity. If I was looking to invest £1k today, I’d think myself lucky. Following the stock market crash, there are plenty of bargains to be found on the FTSE 100. The biggest problem might be deciding which dirt-cheap share to buy, given the choice out there.One issue I wouldn’t worry about is whether the stock market rally is set to continue, as Covid-19 vaccination programmes are put in place. While we all want the pandemic to be over as quickly as possible, what happens in the next few months shouldn’t affect how you invest £1k today.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…You should be investing your £1k for a minimum five years and, ideally 20, 30, or 40 years. Over such a lengthy period, today’s number one worry will one day seem like a blip.Tempting FTSE 100 sharesIf I was looking to invest £1k today, or any other sum, I’d spend more time wondering which sector to target.Should I make a beeline for shares that have been hit hardest by the pandemic, such as airlines, cruise operators, pub chains, hotels and oil & gas firms? Or should I look for stocks that have done well out of the last six months? Or, to put it another way, should I buy dirt-cheap Cineworld, or expensive Ocado Group?I like to think of myself as a contrarian investor, one who loves picking up shares when they’re cheap, with the aim of holding them for the long run. However, I’m wary of companies such as budget airline operator easyJet and jet engine manufacturer Rolls-Royce Group. Both have surged since Pfizer‘s vaccine news broke on 9 November, but things could get tougher going forward. Their businesses have taken a severe hit. They’re not as cheap as they were. The recovery will be bumpy.On the other hand, I’d shun lockdown winners. Food delivery companies such as Ocado and Just Eat Takeaway have climbed strongly as orders grew, and could suffer as people rush to eat out again next year. They’re too expensive for me.Here’s how I’d invest my £1k todayIf investing £1k in today’s market, I’d target top FTSE 100 companies with strong and stable future. Pharmaceutical giants AstraZeneca and GlaxoSmithKline would be high on my list, for income and growth. So would consumer companies with a broad portfolio of everyday branded products and loyal customers, notably Reckitt Benckiser Group and Unilever, as well as spirits giant Diageo.US tech stocks have thrashed all-comers. I’d consider investing my £1k in FTSE 100 winners of the future such as Experian, Relx and Sage Group. I think UK shares could start playing catch-up if, and when, Brexit is resolved.There’s a lot of choice out there. Whichever stock I buy, I’ll be holding it for the long term, to give my money time to grow. Then I’d start planning my next £1k investment. The more money you invest, the better your chances of achieving financial freedom, and possibly even retiring early. Image source: Getty Images Enter Your Email Address Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Our 6 ‘Best Buys Now’ Shares Simply click below to discover how you can take advantage of this. Harvey Jones has no position in any of the shares mentioned. The Motley Fool UK has recommended Diageo, Experian, GlaxoSmithKline, RELX, Sage Group, 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. Harvey Jones | Monday, 23rd November, 2020 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! I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. See all posts by Harvey Jones 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! Stock market recovery: how I’d invest £1k today to achieve financial freedomlast_img read more