M&g Share Discussion Threads

[rongetsrich] 03/4/2024 16:58

Hi Helen, I only said maybe too late!! It might drop lucky, yet.When I started to push for retirement back in 2018 I found 2 shares that were antiphase with each other. Barclays and Aviva, and it was stupidly easy to sell and buy making money. Not sure if there's a share that works like that with either MNG or Tesco?If you have an IPhone the Stocks app gives you a good tool to compare share charts to see the pattern.I keep Aviva and have not looked at Barclays since Covid started.

[rongetsrich] 03/4/2024 16:52

Nonsense Peter. I had the dividend in cash, it's now invested and I have more shares than I started with.

[helen troy] 03/4/2024 16:40

Ron, I have a large holding in mng and a largish one in Tesco. I was looking to sell some mng and add to my Tesco holding to get the Tesco extra divi. The price of both has reduced the attractiveness of that so I'm treading water at the moment.Gla

[pierre oreilly] 03/4/2024 16:21

The way I see it is if you want to buy a high yielder, a good time to buy which puts the odds slightly more in your favour is around xd time (matters not whether just before or just after xd) The reason for this is that valuations are more based on p/e and other ratios based on the price compared to the cash a company holds. So getting rid of cash in the form of divis lowers the p/e and other valuation ratios (especially for high divi payers since the xd price drop is more). If the p/e before the xd was say 8, then after the xd with the price drop is 7, then in the weeks and months ahead the price will return to the previous p/e of 8 (by the price rising) since that was the established p/e which institutions previously though fair. All this relies on 'all other things being equal' (which they never are of course), hence why it just increases the chances of making a profit.

[pierre oreilly] 03/4/2024 16:09

But I haven't been claiming anything about my bank balance, so why should I provide evidence of it? It's not a matter of believing or not believing - it's just a matter of supplying evidence to back up what you've posted in vague terms, and to see the reason you bought and sold at those times. We're all here to learn.

[rongetsrich] 03/4/2024 14:12

Fenners, don't get me wrong, this is the only share I've done this on (twice now). It fed my Aviva habit this time, which will yield after the 11th. Will I do it on the interim? I don't think so, I'll be drawing a decent divi as income later this year.

[baldrick1] 03/4/2024 14:04

It seems shorties are working their way down to 180-200p

[fenners66] 03/4/2024 13:55

Well said Ron.
If they dont believe - so what no skin off your nose.

If you had merely proposed the "idea" as a test and run the numbers and found out it worked - that would have been great too as these boards are about trying to find a way to make money.

As you said , different ways to skin a cat.

I think the idea has to be situational . Must work better with hi-yielders as largely they will not suddenly get a growth story going to foil the share price reduction. Now must look at some of the others to test the hypothesis.

Of course a company announcing a buyback - which may give a short term boost to demand - probably needs to be avoided.

[rongetsrich] 03/4/2024 13:41

Happy to do so Irish Pete, once you have collated and posted your bank statements for me to peruse!I couldn't care less if you suspect foul play or BS, I cannot see anything to be gained from making stuff up. DYOR!

[pierre oreilly] 03/4/2024 12:39

Would you be prepared to tell us exactly (time and date) you bought and sold and bought and sold rong? The vagueness is quite odd. The reason why you bought and sold at that time would be appreciated too.On a horse betting site, anyone wanting to state what and how much they've backed had to supply a photo of the betting slip, just so everyone didn't pick the winner after it had won.

[pierre oreilly] 03/4/2024 11:51

Helen, what don't you understand, why they've plagued this board or how buyback xd is supposed to work? I understand neither!

I must have had loads of cash returned to shareholders from chunks of businesses being sold off. I'm not sure I've ever profited from it, with the price dropping by the special divi amount in all cases. The price of the business and the cash generated is always priced in (as you'd expect).

I wish I could find a magic money tree around divis/special divis/sell off of chunks of a business, but I cant. I'm really beginning to think there is no magic money tree!

The other point about corporate action around banks (Virgin, tesco, leeds pibs etc etc) seems like we're at a point where takeovers are likely, and banking shares, and those related, seem a good bet for takeover (say 10% as opposed to 1%).

[helen troy] 03/4/2024 11:19

I'm not advocating anybody to buy. Just may be of interest to the sell and buy back x divi afficiandos that have plagued this board recently and the reasoning I don't understand ?

[uppompeii] 03/4/2024 11:13

3% divi and near it's high of the last 3 yrs...I'm not attracted.

[keyno] 03/4/2024 11:08

In the form of buybacks? They're all the rage.....

[helen troy] 03/4/2024 10:29

Tesco reports next Wednesday and the final divi last year was over 9p. It may be substantially more this year as they have sold their bank and will be returning the cash to shareholders sometime.

[pierre oreilly] 03/4/2024 10:17

Fenners, by 'naysayers' do you mean the financial regulator and derivative platform suppliers?

[fenners66] 03/4/2024 09:52

Ron - I was not trying to "mark your homework" merely an impartial observation that any naysayers could not disagree with.

The share price fall yesterday was a really profitable point to buy back (as I said at the start I had the benefit of hindsight before reading the method)

So I guess what I am trying to work out - was there a predictable reason after the xd of the final div for the share price to continue to fall ?

You may have referred to a post xd vacuum - no dividend to wait for , no news , pre new tax year so no catalyst to move the share price higher?

Whereas there are always reasons for some to sell.

Are there more shares out there , paying a large dividend with a gap before next report / xd allowing reinvestment of the engineered early dividend enabling a compounding across the year ?

[pete160] 03/4/2024 08:23

Thanks Skinny, of those I think it's only mng which has gone xd so far ( the dividend pence not being reflected on the chart), so perhaps the others will head the same way in due course?

[skinny] 03/4/2024 07:46

Again, for info - the chart comparison of some shares that many of us /hold / watch :-

[luderitz] 03/4/2024 07:36

Roughly this time last year I note the share price dived around 40p so hopefully a similar lowering of share price will allow me to buy in and profit with an acceptable profit.

[skinny] 03/4/2024 06:58

More downside generally likely today with the futures currently -30.

For info, the 1 week high is 235.30p, yesterday's low was 213.30p xd was 28th March.

[rongetsrich] 03/4/2024 06:52

Thanks for attempting to mark my homework Fenners.You are absolutely correct, though, hindsight trumps foresight every single time. Yes, I should have mortgaged my house during Covid and bought MNG.I bought in too early, but same again I didn't foresee a run on the share, but it appears nobody here did either, or they're the ones that don't share.My end result, after my 3.99 fees and stamp duty was I trumped the dividend by 1.19 X divi, and ended up with an extra 224 shares. Had I waited til yesterday pm, then I would be pleased.I use II, which conducts its free regular saving deals today, I'm not sitting on my hands, I have a pension dividend to grow.I may do the same later in the moth with the free trade they give us per month... onwards and upwards..

[fenners66] 02/4/2024 21:54

Well I have just caught up with nearly 200 posts - so have seen the play out with hindsight of the sell pre xd or not.

For a lot of people holding these are about divs - unless there is a bid no one is expecting a sudden meteoric rise or raft of broker recommendations - unless the share price falls first of course.

So back to the idea of selling pre xd.
What was going to be the catalyst to take the share price higher later ?
There are always some who have to / want to sell.

Next results, next run up to xd - perhaps selling first and buying back - as at say today's lower point - works better when its a high yield share with no imminent growth catalyst.

Had Ron bought back at the low today then a more profitable move , the next question is what to invest that dividend in and do the same again before everyone else collects the divi ?