Looks to me like you're emotionally attached to that share. Good luck.
Maybe we could about some other shares? Personally I still think the construction sector is ridic undervalued. I'm still not confident enough in my own analysis to really stick my neck out tho. Does anyone know the reasons why this sector is so cheap/dividend yields are so high?
This is what I got from my friend: (try and copy and paste from MSN as much as I can)
Credit lines still non existent for individuals and small businesses so really tough to borrow, Demand still very low for property and so prices are cheap (with plenty of property unsellable) - But construction firms need to take a punt on the industry /markets as property needs to be available when demand comes back
So either they sit and wait halfway through projects that are already in progress not making money or they take a gamble and crack on
Problem is they're relying on us coming out of recession without inflation rocketing
When we're equally likely to stay in recession ( demand won't come back) Or come out of recession with raging inflation meaning interest rates will go up
If interest rates go up investors won't want to borrow to invest in property So construction in a bad way all angles at the minute.
Construction companies do best at the start of a cycle where economy is healthy and interest rates are low cos investors speculate
So if we come out of recession with inflation under control shares will go up sharply.
Property just isnt selling at the minute and house prices have slightly fallen again. So lots of companies halfway through developments without any buyers even though company has shelled out investment
Q/ is it worth investing in the industry at the minute - A/ It is if you fancy taking a punt as on the whole they're undervalued. But some companies will go under, so if you wanted to do it, invest in several, or a property index.
On Desire - not sure if anyone saw the announcement today? Basically, Desire have raised 22.8 million through the city to do some more
seismic surveys on new play types they have discovered by a share placing. They've been snapped up at £1.40 a share (always discounted) which is fantastic news for desire as it means the city is confident enough to hand over 22.8 million for a company with no oil yet!!!! Seems that volume is up all week because hedge funds are coming into Desire!!
Author