Another share thread

iviv · 2 Jul 2008 at 13:26

Following on (slightly) from my other thread, there's been talk here in the office about snatching up some shares in Taylor Wimpey since they've recently plummeted from 60p to 30p after releasing a trading statement. Share info page.

So, what's the best way to go about buying them? It would probably end up being a one-time short term thing, rather than keeping it as something long term, but I don't really know too much about buying/selling shares, so any advice would be nice.

booyaka · 2 Jul 2008 at 13:39

buying shares you need to use a broker.

check out the likes of

www.iii.co.uk
www.fool.co.uk
www.fidelity.co.uk

to find costs and prices of brokers etc.

Buying share is a risky game so only invest what you can afford to lose. It's really not worth doing it with £1000 or so you need to be committed and also just cause a share price has plummeted now doesn't mean they are going to go back up in the future.

Also you need to factor in buying/selling costs/ ongoing annual costs of the various stockbrokers, capital gains tax should you need to start paying that and also stamp duty.

Haircut · 2 Jul 2008 at 13:41

Why do you think now would be a good time to buy them?

iviv · 2 Jul 2008 at 14:40

Haircut said:
Why do you think now would be a good time to buy them?

A combination of unfounded optimism that things can only get better, combined with the fact that the selling of the construction side of the business should provide a boost that will bump the price up towards where it once was?

iraiguana · 2 Jul 2008 at 14:51

I think a lot of shares still have a fair way to go yet, over next two years things are looking to be tough for most businesses except energy and oil.

Good luck

Morba · 2 Jul 2008 at 14:55

There is still a shortage of houses, so at some point these shares will go back up. Just not soon imo.

gjrc · 2 Jul 2008 at 14:56

Morba said:
There is still a shortage of houses, so at some point these shares will go back up. Just not soon imo.

only if they survive....

talk in the market is that its only a matter of time before one of the major house builders goes to the wall.

a low share price doesn't mean a good share price!

jamief · 2 Jul 2008 at 14:58

I've done a LOT of small trades (£100-£300) and made decent money. I had quite a lot of Afren stock (AFR) which made me a few quid, so disgregard the "small trades aren't worth it" brigade.

iviv · 2 Jul 2008 at 15:00

Well, Taylor Wimpey has TWC which it can sell, while the other major house builders don't have similar businesses to sell. So looking at it like that, and assuming they can find a buyer, TW should make it out of this. It may take a while to recover, but it should prevent them going down. Plus, if another one goes down, it will mean more business for the remaining companies. So it should only need one company to go down which should save the rest.
Right?

iraiguana · 2 Jul 2008 at 15:37

The companies are all in need of loans to continue I thought which is why they are looking a bit dodgy. None of the banks are willing to give them the loans as the house market as not stabilised. Bit of a chicken and the egg saga going on.

iviv · 2 Jul 2008 at 15:43

Yeah, but again surely the fact that Taylor Wimpey can dump TWC like they are trying to do, which will give them the cash injection that should get them through. Or at least leave them better off than the other housing companies and more likely to get the loans.