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Thread: Buying shares?

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  1. #1
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    Buying shares?

    How do I get started? I have some money saved about 2-3 thousand and want to buy shares for a company with it and try to make some money during the year in uni.

    Do I need a stock broker? and also how do you personally decide which company to invest in. Newspaper colums?

    Last question Im quite confused about the Islamic ruling regarding this.

    Any help will be greatly appreciated

  2. #2
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    DV where are you based?


    Jo aql ka ghulam ho, woh dil na kar qubool
    Disown the heart that's slave to the mind
    -Iqbal

  3. #3
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    Glasgow,Scotland

  4. #4
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    Ok. I don't know the UK that well but I'm sure you can go to a website like this:
    http://www.stockbrokers.barclays.co.uk/

    and open an online brokerage account. It'll be linked to your bank account to facilitate transfer of money. And then inside this brokerage account you buy/sell shares. All of this is done online and you don't need a middle-man or a stockbroker. The buying and selling transactions incur fees and these are deducted from your account. Different brokerages have different fee structures so you have to take this into consideration.

    Disclaimer: I don't actually do any of this myself, most of my knowledge comes from reading various blogs.

    As for what stocks to buy, I'm not a stock picker so my advice would be to hit your local library for some books on how to invest. One guy people mention is Benjamin Graham who wrote a book called Security Analysis. Warren Buffet is one his disciples.

    I would stay away from companies whose primary business has to do with alcohol, gambling, pornography, financial services involving interest, etc. Basically if you think that the company is involved in something that isn't permissible in Islam, don't buy their stock.

    Also, when you invest try and think of yourself as being a part owner of the company whose shares you're buying. Don't be an idle speculator who's relying on guesswork to make a quick buck, because that then is just like gambling.


    Jo aql ka ghulam ho, woh dil na kar qubool
    Disown the heart that's slave to the mind
    -Iqbal

  5. #5
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    Also check out TDwaterhouse.co.uk they are very similar to Barclays and you can link your current account .

    Once you have built a history of transaction with them they can offer you credit for a two week window but you need to be very careful if you want to day trade as the stocks can turn against you and leave you with a loss.

  6. #6
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    Quote Originally Posted by classic View Post
    Also check out TDwaterhouse.co.uk they are very similar to Barclays and you can link your current account.
    TDW are the cheapest out there.

    Some things to be aware of as a rookie trader.

    - There are usually two markets to trade on - FTSE for the larger stocks, and AIM for the smaller shares. Most brokers trade on both exchanges.

    - You need to decide on your risk/reward strategy. Large companies are more stable, but will rise 10% in a good year. Smaller, illiquid stocks are much more risky, but can rise 100% on a single bit of good news. Similarly, I have seen AIM shares lose 75% of their value in one day based on some bad unexpected news.

    - There is a bid and an ask price, i.e. a price you can buy at and sell at. The difference is known as the spread. On smaller, illiquid shares, the spread can be upto 30%, i.e. you need the share to rise by 30% just to break even. This is done to deter speculators.

    - There are transaction costs to buy and sell, which you need to factor in. These are usually fixed, meaning that you are hit harder if investing small amounts.

    - Buy on rumour, sell on fact.

    - Have a balanced portfolio in terms of risk and reward.

    - Decide if you wish to be a trader or investor. The former trade shares unemotionally, typically selling out within days of holding. This can be lucrative but risky. I would suggest with a small pot of money like yours, you shouldnt do this as the transaction costs alone will eat into your profit. Hold for the longer-term.

    - Research the **** out of a stock you want to invest in. There are many bulletin boards (www.iii.co.uk, lse.co.uk) where stocks and tips are given, and news given by the companies discussed in detail.

    - Finally, do your own research (DYOR). There are many bashers (people who want the share price to fall) and rampers (people looking to make SP rise higher than it is worth) who can seem quite persuasive. Ultimately, you are responsible for your own investment decision.

    And finally, good luck. Investing can be great fun, and a good alternative to savings in these days of low interest rates. But it can also be dangerous, so my advice is to start off with a low risk strategy and take it from there.


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  7. #7
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    Quote Originally Posted by DeadlyVenom View Post
    How do I get started? I have some money saved about 2-3 thousand and want to buy shares for a company with it and try to make some money during the year in uni.

    Do I need a stock broker? and also how do you personally decide which company to invest in. Newspaper colums?

    Last question Im quite confused about the Islamic ruling regarding this.

    Any help will be greatly appreciated
    As a student, I am assuming you do not have that much cash to lose. I would suggest you think carefully before investing and not go for companies whose share price is quite volatile e.g Banks. It may seem attractive but you could end up having to wait a long time just to get your money back.

    There are plenty of online brokers like but you may find that your bank also provides a competitive share brokerage service and maybe worth your while sticking with them, especially if you have have online banking facility. I do my shares through HSBC.

  8. #8
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    I don't think its a good idea to be messing around in the stock market with very limited knowledge of it. Spend time trying to understand everything and then invest

  9. #9
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    Guys I honestly appreciate all the information that you have given me in the thread. It has given me some things to think about.

    d0gers- my initial intention was actually just for short term investing and attempting to make a quick buck. Islamically this should be avoided yeh?
    Also thanks to you and classic for the links to brokers

    jaspa888- thanks for the info bro, your post really cleared up some confusion I had about this issue.

    eagle_eye thanks bro I will check my banks facility for this. I didnt know that you could go through the bank

  10. #10
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    No problem mate. Just ask if you have any further questions.

    EDIT. Banks like Barclays do offer a share service, but this is more expensive than independent on-line brokerage services like TDW and share centre.

    EDIT. You also need to factor in stamp duty for most shares.
    Last edited by jaspa888; 21st September 2010 at 12:17.


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  11. #11
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    Cheapest broker is http://www.x-o.co.uk/ at £5.95 per trade.


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  12. #12
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    Thanks very much man, you are a legend!! I need to do a lot of research before I even think of buying. The links and advice you guys have provided have been very helpful

  13. #13
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    DV

    Sign up to https://www.share.com/a/index.html and there is a FREE practice portfolio there. Select some shares you like and the practice portfolio then treats your shares like you have actually bought/sold them (including transaction costs)... except its not for real money.

    You can practice till your heart is content, and actuallys ee how good or bad you are.


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  14. #14
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    Quote Originally Posted by jaspa888 View Post
    DV

    Sign up to https://www.share.com/a/index.html and there is a FREE practice portfolio there. Select some shares you like and the practice portfolio then treats your shares like you have actually bought/sold them (including transaction costs)... except its not for real money.

    You can practice till your heart is content, and actuallys ee how good or bad you are.
    (no shirk lol)

  15. #15
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    Quote Originally Posted by DeadlyVenom View Post
    d0gers- my initial intention was actually just for short term investing and attempting to make a quick buck. Islamically this should be avoided yeh?
    DV I'm no scholar or expert on this. But to me short term trading or daytrading sounds a lot like gambling. High risk enterprise and one where more is unknown than known. If it were up to me I'd rather bet money on football or play blackjack at the casino because in both cases I would know more about the odds and the relative chances of success and failure than in trading stocks in the short-term.

    But anyway as jaspa pointed out, because you're starting with a relatively small sum, the fixed transaction costs and any taxes on gains will hurt you in terms of short-term trading and you'll need to earn a substantial return to cover these and still make a decent profit.


    Jo aql ka ghulam ho, woh dil na kar qubool
    Disown the heart that's slave to the mind
    -Iqbal

  16. #16
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    Anyone get lucky with rockhopper here?


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  17. #17
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    Was in from 30p on RKH.

    The next big one that could fly in the next 3 months is Range Resources (RRL). You saw it here first.


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  18. #18
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    In small put that money into investment and not into trading.

    I am sure, you won't have much time to spend and track the company balance sheet and economic news articles.

    In that case, you can try what I did few years ago when I started investing in shares.

    Find 3-4 bluechip stocks from different sectors (banking, construction/infrastructure and IT worked for me as I am in India and these sectors are hot) and distribute your money on one company from each sector.

    Forget about it for 3-5 years. If you do not have a window for that long and you may need your money back before 1 year, my advise would be DO NOT enter into stocks. Fix deposit or invest into debts.


    Laughing Faces Don't Mean Absence Of Sorrow. It Means That They Have The Ability To Deal With It

  19. #19
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    Quote Originally Posted by jaspa888 View Post
    Was in from 30p on RKH.

    The next big one that could fly in the next 3 months is Range Resources (RRL). You saw it here first.
    Any more info on rrl?

    You sold your rkh or waiting for it to hit £10 mark?


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  20. #20
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    Now out of RKH and back into GKP. GKP's tests show it has enough oil for the whole of USA for 3 years, but massively undervalued as the market just doesnt believe them! If true, it is the biggest new oil discovery in 35 years. Just imagine the SP if true....

    RRL is more of a punt, but touted by many as potentially the next GKP/RKH. They have interests in four regions, with the current SP under-pinned by profits from existing production in Texas. Their biggest potential is in Somalia, where previous data obtained from sources suggest large reserves. The obvious problem is the political and law/order situation there...

    They also expect an update on seismics in Georgia in the next 2-3 weeks.

    I consider RRL to be a calculated punt as the SP is supported by existing production. The real risk is the cash burn.

    DYOR.


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  21. #21
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    Quote Originally Posted by jaspa888 View Post
    Now out of RKH and back into GKP. GKP's tests show it has enough oil for the whole of USA for 3 years, but massively undervalued as the market just doesnt believe them! If true, it is the biggest new oil discovery in 35 years. Just imagine the SP if true....

    RRL is more of a punt, but touted by many as potentially the next GKP/RKH. They have interests in four regions, with the current SP under-pinned by profits from existing production in Texas. Their biggest potential is in Somalia, where previous data obtained from sources suggest large reserves. The obvious problem is the political and law/order situation there...

    They also expect an update on seismics in Georgia in the next 2-3 weeks.

    I consider RRL to be a calculated punt as the SP is supported by existing production. The real risk is the cash burn.

    DYOR.
    Yes Jaspa, gkp will be big but isnt it dependant on the new iraqi government and whether they will tear up the existing contracts or not? Im sure gkp will be around the £2 come the end of the year.

    You have anything invested in desire?


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  22. #22
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    Quote Originally Posted by goldleaf View Post
    Yes Jaspa, gkp will be big but isnt it dependant on the new iraqi government and whether they will tear up the existing contracts or not? Im sure gkp will be around the £2 come the end of the year.

    You have anything invested in desire?
    Iraq Govt is supposed to be sorted in 4 weeks. Considering the size of the find compared to DES/RKH, if successful, I expect it to be closer to £5 by year end. No way the yanks will allow them to tear up the existing deals in place.

    My other two AIM stocks are SXX and PXS. SXX could/should benefit from the potash turf war between BHP and the Chinese over Potash Corp takeover. Plus, the price of potash has quadrupled over the year since SXX's last broker note.

    PXS is an interesting one because it is still the only company to have successfully obtained a 13.5 health claim approval from EFSA for their Fruitflow ingredient.

    From 2011, all health products sold in EU need 13.5 approval on wording, and a tiny company from Liverpool has so far beaten all the food manufacturing giants to this. They have signed a tie-in with DSM - one of the world's largest food ingredient manufacturers - to try and market this product to the global food suppliers like Coca Cola and Nestlé.


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  23. #23
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    Jaspa,

    what do you know about desire?

    I hear they are drilling within the next month.

    I like you am Hoping we hit the big money on gkp


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  24. #24
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    Not much more than you mate. Its already been overbought IMO, and the only upside I can see in the SP is if they get taken over.

    If you are an oiler, I suggest you look at RRL. Some serious upside there, with more than the usual risks as their biggest resource is in Somalia - somewhere that makes Karachi seem safe! With the right news flow, I can see it trebling by year-end.

    DYOR.


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  25. #25
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    Quote Originally Posted by jaspa888 View Post
    Not much more than you mate. Its already been overbought IMO, and the only upside I can see in the SP is if they get taken over.

    If you are an oiler, I suggest you look at RRL. Some serious upside there, with more than the usual risks as their biggest resource is in Somalia - somewhere that makes Karachi seem safe! With the right news flow, I can see it trebling by year-end.

    DYOR.
    I will look into RRl but just hearing Somalia makes me tread with caution.

    Who do you trade with?

    you ever use the iii.co.uk website?, some good discusiions on there about the oilies.


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  26. #26
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    Agreed about Somalia, but the rewards are potentially huge as well. And the current SP is already under-pinned by existing production in Texas.

    I have always used TDW because they allow T+20 trades, but quite like the look of http://www.x-o.co.uk/.

    I have been a member on iii since 2001, but it is full of dickheads, rampers and bashers these days. Still a few decent posters though.

    I generally get my tips from my mate in the City, and then I research the **** out of those before deciding where to put my money.


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  27. #27
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    Quote Originally Posted by jaspa888 View Post
    Agreed about Somalia, but the rewards are potentially huge as well. And the current SP is already under-pinned by existing production in Texas.

    I have always used TDW because they allow T+20 trades, but quite like the look of http://www.x-o.co.uk/.

    I have been a member on iii since 2001, but it is full of dickheads, rampers and bashers these days. Still a few decent posters though.

    I generally get my tips from my mate in the City, and then I research the **** out of those before deciding where to put my money.
    I on started recently with rkh now thinking of taking a bit more seriously.

    I'm a proper newbie to say the least.

    Yes, still seem to be a good few people talking sense on there.

    Do you have to pay tax on shares? but not on cfds?


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  28. #28
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    Dont go by the ticks up on iii. There are whole gangs of rampers/bashers that play the game collectively, ticking up each others posts. Even some of the old favourites have been known to get tips massively wrong (possibly delibeately), which is then conveniently forgotten. As long as you post some articulate, eloquent long post, throw in a few figures and technical terms, it looks fantastic knowledge to a newbie. Always do your own research and trust nobody.

    You have to pay 18% CGT on the profit on sale of shares. The first £10,100 gain in any tax year is exempt though, and you can off-set any losses. CGT also applies to cfd's.


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  29. #29
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    Quote Originally Posted by jaspa888 View Post
    Dont go by the ticks up on iii. There are whole gangs of rampers/bashers that play the game collectively, ticking up each others posts. Even some of the old favourites have been known to get tips massively wrong (possibly delibeately), which is then conveniently forgotten. As long as you post some articulate, eloquent long post, throw in a few figures and technical terms, it looks fantastic knowledge to a newbie. Always do your own research and trust nobody.

    You have to pay 18% CGT on the profit on sale of shares. The first £10,100 gain in any tax year is exempt though, and you can off-set any losses. CGT also applies to cfd's.

    Very sound advice from Jaspa....

  30. #30
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    Jaspa, whats the deal with Xstrata?

    The just rise and fall? go down to 900 then back up, over and over again.

    Btw, many thanks for the international calling num on the other thread, working great at the moment.


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  31. #31
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    I dont know much about that share mate, as I largely deal in AIM.

    Interesting to note that my second largest holding, PXS, was the most actice share anywhere today. 9% of all share capital traded today, with next to no SP movement.

    Interesting news to come tomorrow I think...


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  32. #32
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    Sorry mate, eye sight not what it used to be!

    More than 84m shares in life sciences group Provexis changed hands ahead of a rumoured announcement. They touched 3.5p before closing flat at 3p.

    http://www.thisismoney.co.uk/markets...#ixzz10rlwLL9b


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  33. #33
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    exciting times ahead for desire with the drill results coming up ...


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  34. #34
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    Overbought, IMO.

    GKP looking good if Maliki can agree terms with Kurds to form new coalition Govt.


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  35. #35
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    inzamam_1

    Fair play to you mate for getting into the markets at such a young age. AIM investing/trading certainly isnt for the faint-hearted but there is only one mitigation against failurre. RESEARCH!

    I'm quietly excited by PXS. The company has signed its exclusive tie-in with DSM earlier this year, and DSM are now actively marketing the product (see recent webinar). DSM officially launch FF in Madrid in November, at an event attended by all the global manufacturers.

    I cant see how this product cant come good, the only question mark for me being the market price. Unlike oilies, it is difficult to put a price on the SP/earnings until we know the commercial details of any deals signed. Will certainly be multiples of today though...

    I have looked at CAD in the past, but wasnt too impressed by its management team at the time (I know thee has been a recent change but dont know much about the new guys). There is certainly great potential there, but this litigation doesnt look like getting sorting too soon. If they can get production back, I can easily seeing it touch the pound mark again. I am invested elsewhere, but looks worth a small punt.

    I like XEL, and have been in since March at 28p. I have top-sliced a few times, but look forward to this hitting £2 by year-end. Excellent, regular recent newsflow too - always the sign of a company that values its shareholders.


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  36. #36
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    Quote Originally Posted by jaspa888 View Post
    inzamam_1

    Fair play to you mate for getting into the markets at such a young age. AIM investing/trading certainly isnt for the faint-hearted but there is only one mitigation against failurre. RESEARCH!

    I'm quietly excited by PXS. The company has signed its exclusive tie-in with DSM earlier this year, and DSM are now actively marketing the product (see recent webinar). DSM officially launch FF in Madrid in November, at an event attended by all the global manufacturers.

    I cant see how this product cant come good, the only question mark for me being the market price. Unlike oilies, it is difficult to put a price on the SP/earnings until we know the commercial details of any deals signed. Will certainly be multiples of today though...

    I have looked at CAD in the past, but wasnt too impressed by its management team at the time (I know thee has been a recent change but dont know much about the new guys). There is certainly great potential there, but this litigation doesnt look like getting sorting too soon. If they can get production back, I can easily seeing it touch the pound mark again. I am invested elsewhere, but looks worth a small punt.

    I like XEL, and have been in since March at 28p. I have top-sliced a few times, but look forward to this hitting £2 by year-end. Excellent, regular recent newsflow too - always the sign of a company that values its shareholders.

    In re to xel- £2 a share by year end and hopefully if well test is a success then possible takeover in 2012?


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  37. #37
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    Desire down today


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  38. #38
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    Some large buys on GKP and PXS today, including delayed trades. I'm expecting news soon.

    RRL SP now underpinned by P1/P2 reserves in Texas, but Somalia (Puntland) spud now delayed by at least 6 months. Georgia news expected within the week though...


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  39. #39
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    Good posts by jaspa888.

    Talking of rrl, I went in recently with a quick day trade but got locked in. MMs have been tinkering with this all week. Any thoughts what price this can achieve by year end?

  40. #40
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    Absolute carnage on DES this morning, where it was down by 50% after the announcement of the Rachel duster. I did say that IMO it was over-valued considering no oil had actually been found yet. Hope people got out yesterday, as there seemed to be a newsleak in advance...

    RRL wont be a £1 share IMO, unless Puntland becomes a reality. But Georgia will be released in next two weeks, and I expect SP to go to at least 8p on good news. Of course the day traders will sell up, but I am looking at 10p by year-end on continued newsflow.

    I have changed my attitude to risk in recent years. I used to chase rainbows years ago - those stocks that had 20x multibagger potential, but were loaded with risk. But unless you have some inside knowledge, the risk invariably outweighs the rewards. Shares like GKP (3p to £1.60 in 18 months) really are once in a generation and shouldnt be taken as the norm.

    While I still prefer AIM to FTSE because of the volatility, my risk/reward strategy has changed. I now prefer to invest (not trade!) in those stocks where there massive potential upside, but also some proven resource or net asset value that underpins at least 75% of the current SP. That way, even if the upside doesnt come off, most of my initial investment is protected and I can move my money elsewhere...

    Of course, this type of share (undervalued but with multibagger potential) are as rare as rocking horse ****. The three shares of this type I currently have in my portfolio are:
    - RRL (SP=5.6p, NAV=5p)
    - SXX (SP=6p, NAV=7.4p)
    - TYM (SP=6p, NAV=7p)

    All have massive upside too - especially SXX.

    That is why RESEARCH is the key. By all means listen to others, but dont be lazy by relying on others to do your decision-making. After all, its your money on the line.

    Good luck all.


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  41. #41
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    Was about to go in big on desire a few days ago, luckily said i would wait a few days.

    Im seriously looking at investing heavily in xel and gkp, gkp being the one im following with most vigour at the moment.

    Thanks for the info jaspa, ive been doing some digging on rrl and it looks promising, I'm going to have a look in to sxx too.


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  42. #42
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    Glad you didnt get stung mate. My mate sold on a £35k loss this morning...

    SXX is my best share at the moment. Let me know if you need some info, but the iii board for SXX is an excellent resource centre with many knowledgeable posters on there.


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  43. #43
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    Great post jaspa888 looks like you have been trading shares for sometime now and have some good understanding of how it all works.

    I would like to know what you make of YELL as it is currently at 15p and THOMAS COOK (tcg) and was hoping to invest in these .

    Would appreciate your response.

  44. #44
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    Also anyone come across ENEG- enegi oil?


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  45. #45
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    Quote Originally Posted by jaspa888 View Post
    Glad you didnt get stung mate. My mate sold on a £35k loss this morning...

    SXX is my best share at the moment. Let me know if you need some info, but the iii board for SXX is an excellent resource centre with many knowledgeable posters on there.
    Some more info would be great please.


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  46. #46
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    Quote Originally Posted by classic View Post
    Great post jaspa888 looks like you have been trading shares for sometime now and have some good understanding of how it all works.

    I would like to know what you make of YELL as it is currently at 15p and THOMAS COOK (tcg) and was hoping to invest in these .

    Would appreciate your response.
    Sorry mate, not really in to those shares. I made a couple of grand speculating on Yell last year wehn it went up to 70p, but those two stocks are not really my market as the potential upside is not big enough (for me).


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  47. #47
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    Quote Originally Posted by goldleaf View Post
    Some more info would be great please.
    OK, a quick brief.

    Potash is the main component of fertiliser.
    http://www.pda.org.uk/whatsk.html

    Potash prices are expected to treble over the next three years as demand outstrips supply. There is unprecedented demand for potash from the BRIC block of emerging countries. Especially China which is still predominantly an agricultural economy.

    The largest potash producer in the world, BHP, has launched a hostile takeover for PotashCorp which is the second largest producer. If this merger goes through - which looks likely - China will be totally reliant on the West for its potash requirement. So China needs to source its own potash supply, which is where Sirius could massively benefit.

    SXX holds three primary sites (Derby Salts, Queensland, North Dakota) which it owns outright. All are in known potash areas.

    The Chinese are defintely watching Sirius. Just two months ago, China's second largest potash company signed a Memorandum of Understanding (MOU) to develop Sirius's Queensland site. If this goes ahead, then the CHinese would pay for all of the mining for a guaranteed supply of the potash there.
    http://www.independent.co.uk/news/bu...e-2066282.html

    The expected newsflow is also massive. In just the next three months:

    - North Dakota will commence drilling, and if resource is confirmed then development of mine will commence.

    - Results from Derby Salts seismic will be interpreted.

    - MOU with Chinese expected to be formalised into long-term contract at Queensland

    Just one of these 'plays' to come off will multiply the current SP many times.

    The biggest upside of Sirius, however, is the management team. The Chairman is Chris Catlow, formerly of Fortescue Metals. He was CFO when Fortescue went from a 4c SP to $122 (3000%!!!) in just 4 years. Fortescue owned the mines, but Catlow was the one who raised $4bn from the markets to drill the iron deposits from the mines. Sirius has the same problem - 100% ownership but no money to drill and mine. Catlow seems to be the right man to raise the investment required, especially as he now is known to the money markets.

    He owns 15% of SXX, and has further 10% options. Considering he is worth $300m personally, his salary is only £30k per annum. For him to leave Fortescue, he must see massive potential in SXX as he obviously isnt working for his £30k salary!

    As always, DYOR.


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  48. #48
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    Quote Originally Posted by jaspa888 View Post
    OK, a quick brief.

    Potash is the main component of fertiliser.
    http://www.pda.org.uk/whatsk.html

    Potash prices are expected to treble over the next three years as demand outstrips supply. There is unprecedented demand for potash from the BRIC block of emerging countries. Especially China which is still predominantly an agricultural economy.

    The largest potash producer in the world, BHP, has launched a hostile takeover for PotashCorp which is the second largest producer. If this merger goes through - which looks likely - China will be totally reliant on the West for its potash requirement. So China needs to source its own potash supply, which is where Sirius could massively benefit.

    SXX holds three primary sites (Derby Salts, Queensland, North Dakota) which it owns outright. All are in known potash areas.

    The Chinese are defintely watching Sirius. Just two months ago, China's second largest potash company signed a Memorandum of Understanding (MOU) to develop Sirius's Queensland site. If this goes ahead, then the CHinese would pay for all of the mining for a guaranteed supply of the potash there.
    http://www.independent.co.uk/news/bu...e-2066282.html

    The expected newsflow is also massive. In just the next three months:

    - North Dakota will commence drilling, and if resource is confirmed then development of mine will commence.

    - Results from Derby Salts seismic will be interpreted.

    - MOU with Chinese expected to be formalised into long-term contract at Queensland

    Just one of these 'plays' to come off will multiply the current SP many times.

    The biggest upside of Sirius, however, is the management team. The Chairman is Chris Catlow, formerly of Fortescue Metals. He was CFO when Fortescue went from a 4c SP to $122 (3000%!!!) in just 4 years. Fortescue owned the mines, but Catlow was the one who raised $4bn from the markets to drill the iron deposits from the mines. Sirius has the same problem - 100% ownership but no money to drill and mine. Catlow seems to be the right man to raise the investment required, especially as he now is known to the money markets.

    He owns 15% of SXX, and has further 10% options. Considering he is worth $300m personally, his salary is only £30k per annum. For him to leave Fortescue, he must see massive potential in SXX as he obviously isnt working for his £30k salary!

    As always, DYOR.
    Much appreciated Jaspa, will definatley be following SXX a lot more closely in the coming weeks.

    Very interesting info on Chris Catlow, will have to dig a bit deeper into that. Once again, many thanks.

    Also have you come across ENEG- enegi oil?
    Last edited by goldleaf; 18th October 2010 at 15:12.


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  49. #49
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    An excellent article on what constitutes a good small cap mining investment:

    http://www.resourceinvestor.com/conf...Companies.aspx


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  50. #50
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    Quote Originally Posted by jaspa888 View Post
    An excellent article on what constitutes a good small cap mining investment:

    http://www.resourceinvestor.com/conf...Companies.aspx
    Thanks for posting, do you know any websites that offer good share tips or do you just read the ft daily?


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  51. #51
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    Also how do I find out whether certain aim shares can be bought through an isa?

    As a general rule I've been told they can't but certain aim shares are listed on other markets so these are permissible to be traded through an isa?

    Can someone please advise.


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  52. #52
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    Quote Originally Posted by goldleaf View Post
    Thanks for posting, do you know any websites that offer good share tips or do you just read the ft daily?
    I dont trust share on-line tips as there are organised armies of pump and dumpers, who will drive up the SP by getting newbie, greedy private investors in, and then selling for a quick profit, leaving the unfortunate pi with a pup.

    FT and other broadsheets will give daily/weekly tips, and these are rather more objective. Still do your own research though, as the tipper rarely has an in-depth knowledge of the company.


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  53. #53
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    Quote Originally Posted by goldleaf View Post
    Also how do I find out whether certain aim shares can be bought through an isa?

    As a general rule I've been told they can't but certain aim shares are listed on other markets so these are permissible to be traded through an isa?

    Can someone please advise.
    Indeed, the general rule is that AIM shares do not qualify for ISA status, but if the stock is dual-listed, it can be put into your ISA.


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  54. #54
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    Quote Originally Posted by jaspa888 View Post
    Indeed, the general rule is that AIM shares do not qualify for ISA status, but if the stock is dual-listed, it can be put into your ISA.
    Thanks for the clarification jaspa, how do I find out if the stock is dual listed?

    I'm hoping gkp is so I can stick it into an isa.


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  55. #55
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    Answering this type of question is where the bulletin boards ARE useful. Post your query on iii, and you will get a correct response.

    FYI, the answer with GKP is sadly no.


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  56. #56
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  57. #57
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    Jaspa, you seem fairly knowledgeable. Do you know any good sites for short-term trades?

    I ask because we have this stock simulation for my investment management class. We are currently at a 1.43% return and we need to beat the S&P500 to get a good mark. It is current;y at 5.11%.

    My group mate made some bad trades and now we are in bit of a hole. I have till Nov 19 to turn it around. At this moment, we have some holdings of Silver which is our best performer. Here are some of my thoughts:
    -See where gold is going this week, I think it may go down even more and then buy it before QE annoucement
    -Short Amazon, highly overvalued
    -Short US dollar


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  58. #58
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    I only know the UK markets mate, so dont know if you can trade on those.

    For the short-term gains you are looking for, I would suggest a punt on oil/gas stocks where news is expected/overdue. Not all of your investment, but these stocks are highly volatile and can increase by 100% in a day.

    As for commodity trading, diamonds are said to be under-valued right now.


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  59. #59
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    Xel doing well

    Jasapa have you come across KEFI?

    Apparantley about to get a contract in saudi drilling for gold.


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  60. #60
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    I looked at KEFI last week based on a tip received from a well-placed friend of mine.

    Too high risk for me, especially when you consider the the facts:
    - they havent found gold yet, but their mines are based only in areas where there has historically been gold
    - the stock has gone up 400+% in the last month alone - is the potential good news of licence being granted already priced in?
    - there was an active pump & dump campaign on the stock over the last month - always leaves me dubious
    - they are years and millions of pounds away from finding anything

    Very high risk punt, with massive rewards (20p+ has been mentioned). I would rather put my money in a more mature miner like Solomon.

    Good luck, whatever you decide.


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  61. #61
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    Got a tip few months back that AFC energy was going to rocket and it has done.

    Should be £1 soon, anyone got anything in AFC?


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  62. #62
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    Good news for me, we turned it around and now past SP500.

    Anyways, just for discussion, what do people think of Wednesday's decision? After the job reports, a lot of reptuable outlets (like WSJ) are saying they are not going to do the full 500B for QE. How do you think the market will respond? I was reading somewhere that the market has priced it in and anything less than that 500 figure, will see a decline.


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  63. #63
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    Just wondering if anyone has any thoughts on MXP they are an oil exploration company drilling the Caspian sea..

    Sp at the moment is around 20p but they did drop 18% yesterday on small oil find which I found strange . Any thoughts from you good people on this would be welcomed.

    I was hoping to invest about 5K on something that could yield a handsome return over a Year or so.
    Last edited by classic; 29th October 2010 at 23:38.

  64. #64
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    MXP has doubled over the last two weeks. It is your typical high risk / high reward oil exploration punt. Over-valued IMO, because they have 13 holes to dig and the last 2 were dusters. Yesterday's find is still not verified. They also dont possess a lot of cash, so expect further dilution from future placings.

    The potential is massive though. It could easily be a £1 SP in three months. It all depends on the discoveries they make. Using the industry standard seismics, a success rate of 1 economically viable success in 7 holes drilled is generally expected. High risk, high reward.

    DYOR, and good luck.


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  65. #65
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    Jaspa888: What do you think about Bank of america and citizens bank stock? do you think its worth to buy at this time or you think both of these stocks will go further down.

  66. #66
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    jaspa888 thanks , I decided to invest in this yesterday so hoping for a nice return sometime in the future . I am hoping for a £1 at least once they announce good news which as you say is a hit and miss but I am willing to take the chance on this one I believe they will come good . InshaAllah.

  67. #67
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    Quote Originally Posted by sehsan View Post
    Jaspa888: What do you think about Bank of america and citizens bank stock? do you think its worth to buy at this time or you think both of these stocks will go further down.
    Sorry mate, I only have a passing knowledge of UK stocks.


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  68. #68
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    Quote Originally Posted by jaspa888 View Post
    Sorry mate, I only have a passing knowledge of UK stocks.
    understatement mate

  69. #69
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    I am not being modest mate.

    I have done my research (to death) on stocks that I am invested in, but ultimately only know a fraction of the actual events taking place, compared to the Board of Directors and employees of that company.

    So ultimately, my decision to invest only represents a partly-informed opinion, especially on AIM stocks where reporting regulations are less robustly followed than for FTSE stocks.


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  70. #70
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    Gkp on the rise!

    Invested heavily in this, big potential as long as the government situation gets sorted out.


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  71. #71
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    Gkp


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  72. #72
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    desire flying as well today


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  73. #73
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    xel is the one that got away for me.... was tempted at 115... decided not to

  74. #74
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    My biggest mistake was getting rid of CHAR last year (10k shares) at 20p because I was bored. Now sitting at 200p+...

    GKP is looking strong buy this week. New Iraqi Govt should be formalised (finally after 7 months) on Thursday, which should lead to Kurds getting the Oil ministry, and formalisation of GKP's export contracts. Goldman Sachs gave a sell note yesterday, based on the political risk, meaning it is top up time for me.

    Still cant understand the lemmings going into DES, considering they have found no oil (at all), have had two dusters in a row now, and their only upside is that oil has been found in that vicinity. Big, big risk IMO.


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  75. #75
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    Jaspa, you got anything in firestone diamonds?


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  76. #76
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    I bought 8.5k shares a month ago. Under-valued IMO, especially in light of the massive mine they have bought via KDD.

    Rising price of diamonds will help SP too.


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  77. #77
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    Quote Originally Posted by jaspa888 View Post
    My biggest mistake was getting rid of CHAR last year (10k shares) at 20p because I was bored. Now sitting at 200p+...

    GKP is looking strong buy this week. New Iraqi Govt should be formalised (finally after 7 months) on Thursday, which should lead to Kurds getting the Oil ministry, and formalisation of GKP's export contracts. Goldman Sachs gave a sell note yesterday, based on the political risk, meaning it is top up time for me.

    Still cant understand the lemmings going into DES, considering they have found no oil (at all), have had two dusters in a row now, and their only upside is that oil has been found in that vicinity. Big, big risk IMO.



    I dont get that either.... they have had 2 duds and yet the SP is so high.... Massively over valued in my opinion.

  78. #78
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    Quote Originally Posted by Eagle_Eye View Post
    [/B]

    I dont get that either.... they have had 2 duds and yet the SP is so high.... Massively over valued in my opinion.
    They found oil in the rachel sidetrack but encountered difficulties, rachel "3" as it is now dubbed should hit the spot.


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  79. #79
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    Quote Originally Posted by goldleaf View Post
    They found oil in the rachel sidetrack but encountered difficulties, rachel "3" as it is now dubbed should hit the spot.
    I hope it does for pi's sake, but my point is that there seem to be much better investments out there, loaded with less risk but offering the same potential rewards.


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  80. #80
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    Quote Originally Posted by jaspa888 View Post
    I hope it does for pi's sake, but my point is that there seem to be much better investments out there, loaded with less risk but offering the same potential rewards.
    Definatley, have to agree with you there.

    On that note, out of the 7 on the below link, any interest you?

    http://www.fool.co.uk/news/investing...wflwlnk0000001


    Hated, adored, but never ignored

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