I'm not an expert in these things but...
Many years ago I was provide with $30k of company shares as part of an acquisition. Over the years, they dived and up until last week, they were worth $2k so I ignored them. Suddenly they've shot up and subject to the US market opening in 10 mins are currently with $10k to me if I told them at the current price, which I'm setup to do at the click of a button.
Mrs though thinks I should leave them for "a rainy day", especially as all I would do with the cash is stick them in NS&I Income bonds.
WWSTWD...? Stick or Twist?
Just before they crash. HTH.
Why have they shot up in value? That's the key.
Selling off of diverse assets in 2019, paying down debt and a return to their core strategy with better than flat Q1/Q2 numbers seems to be the key. Analyst say they are undervalued and they are a 100yo (this year) US organisation ingrained in the US psyche perhaps a little bit of support via national pride.
Beyond that for the future, I've no idea of prediction.
Analyst say they are undervalued
The company or the shares?
You're almost certainly in a better position to judge whether now is the time to sell than anyone else who can comment on this thread.
No crystal ball here either!
Just after you post on here. Only you can decide when it sits well with you right now.
The company or the shares?
The company.
You’re almost certainly in a better position to judge whether now is the time to sell than anyone else who can comment on this thread.
No crystal ball here either!
I appreciate that, I just wonder is there are any techniques, trends or markers for the lay person to watch for.
You’ll never get poor taking a profit!
😀
BUY! BUY! BUY!
There are loads of techniques, discussed in huge detail in various places.
I've been buying and selling the last few months and the key thing I have decided is that a paper profit means nothing. It matters not whether you have $10k or $20k unless you sell them. You may regret selling them too low, but you'll definitely regret not selling them if they crash again.
Which of course they may not do.
I'd sell half now and keep the rest for a couple of weeks
Sell half?
Check the shorting position. Has it grown or shrunk? By how much? Do you really know why they have gone up?
I'm in procurement and often watch key suppliers for signs that things are changing. The golden rule is that if something is going on, the city (fund managers etc) will know before you do. So look at what the city is doing, the shorting position is a key indicator.
I suppose we don't have enough information.
Lots of the websites (the FT for example) will give an overview of the financials and analysts rating (buy, sell or hold and estimated future price):
https://www.marke****ch.com/investing/stock/aapl/analystestimates
You can also look at the metrics yourself, for example:
https://www.investopedia.com/investing/use-pe-ratio-and-peg-to-tell-stocks-future/
https://www.hl.co.uk/news/articles/archive/what-is-the-pe-ratio
DO NOT SELL THEM. I can’t face the what sunglasses/watch/car threads😀
DO SELL THEM. I can't wait for the what sunglasses/watch/car threads :-p
😀
Those days are - in the main - over. Half of this as suggested could pay for a much needed new garage door though...
Hormann make nice garage doors 😉
STWWhat garage door would you get?
"Oh and Hormann can do a normal person door within the garage door, which is awesome 🙂"
Don't sell too many so as to have to pay capital gains tax.
I used to work for Hormann
I can confirm that they are good quality.
fasthaggis Member
DO SELL THEM. I can’t wait for the what sunglasses/watch/car threads :-p
You are off the Christmas card list this year 🤨
The best advice I heard for company shares is to sell them when they mature and diversify into something else instead of the company. If you need the money, sell half.
Shares in a single company?
Sell.
A single company has very limited diversification and hence bigger risk reward. The great thing about the market on average is that has returned approximate 10% on a rolling average. Taking the "averaged" approach is an excellent strategy.
If you want to keep all shares then a Vanguard ISA with Lifestrategy 100.
Plenty of other options but this is the most generalist advice.
Or you could stick it all in Bitcoin, Tesla or orange juice futures. Your choice!
Sudden increase in share price could mean they've become an acquisition target - older companies are often viewed as undervalued because they've plateaued in terms of growth / market share can be worth more if broken-up and divested.