Time To Invest

[globaldiver]

Banks?

 

Housebuilders?

[Traf]

Oil.

[globaldiver]

Oil.

specleator

[Sweep]

specleator

[Sweep]

Gold is the thing to get your cash into

[Ashey]

A producer of renewable energy products (e.g. solar panels, wave power generators etc)

 

YHIHF

[globaldiver]

Gold is the thing to get your cash into

what's the rate of interest, in round terms?

[Traf]

Gold has risen from 650USD to 950USD in 12 months.

Silver has risen by a greater percentage and is also worth a punt.

[Traf]

Gold has risen from 650USD to 950USD in 12 months.

Silver has risen by a greater percentage and is also worth a punt.

950 USD per ounce, sorry.

About ?18 a gram.

(cocaine is worth twice it's own weight on gold!)

[bolty58]

Oli.

 

Aye, the poor coonts running out of beer money fast.

[Smiffs]

Gold is the thing to get your cash into

 

 

7 or 8 years ago maybe.

 

housing and banks, for the long term, a laughable bargain.

[Sweep]

7 or 8 years ago maybe.

 

housing and banks, for the long term, a laughable bargain.

I think Gold will remain a "safe haven" for many years, although I doubt there will be massive rises like those over the past few years.

 

I have also recently looked at the moble phone networking companies again, and have just lobbed some money into China Mobile, Vodafone and Telefonica. I believe there is still massive growth to be had in the likes of China, India and South America. I see this only as a short term punt though (2~3 years tops)

 

I think you're right about banks and housing as a long term thing though.

[Smiffs]

Over the years, gold has always been safe, it had over a decade of pottering about, but over a lifetime will always be safe.

 

Since the dotcom crash, and the overall world markets crash that followed it at the turn of the decade, gold, and other minerals, was a safe haven for smart money.

 

I dont believe its gone up in value just becuase of its 'need' (where as steel related minerals have)- its as much to do with folk wanting somewhere safe to stash their cash. Its also what makes the world go round in times of strife, a true indication of a nations wealth and stability.

 

In 5 years time, stocks in housing companies will be 500% higher than they are now. New Government, new wave of financial stability....we need to build 4 million new houses by 2020, at current output we'll build about a quarter of that. The market is there in a massive way, its just a case of making it affordable and getting the banks lending again to first time buyers.

 

It will come, it has to, and now is a good time to get into the bigguns (though I would avoid Barratts and Taylor Wimpey at present as their borrowings are massive)

Edited July 5, 2008 by Smiffs

[Smiley]

ok wise asses - which housing company would you recommend, why and minimum amount to invest.

 

ta.

[Carlos]

Iron Ore, when the Indian bloke creates his monopoly prices will rocket.

[Smiffs]

ok wise asses - which housing company would you recommend, why and minimum amount to invest.

 

ta.

 

Persimmon, Redrow, Bovis stand out for me.

 

Barratt and Taylor Wimpey eventually, if they dont go bust first. They have godzillions of debt due to what they spent buying other housebuilders over the last couple of years when prices were high. Persimmon have too, but I dont think they're as exposed, not really looked into them too much.

 

You invest as much as you can afford to lose, but where else is money safe? Yields (the % dividend) are pretty good too.

Edited July 5, 2008 by Smiffs

[Sweep]

Persimmon, Redrow, Bovis stand out for me.

 

Barratt and Taylor Wimpey eventually, if they dont go bust first. They have godzillions of debt due to what they spent buying other housebuilders over the last couple of years when prices were high. Persimmon have too, but I dont think they're as exposed, not really looked into them too much.

 

You invest as much as you can afford to lose, but where else is money safe? Yields (the % dividend) are pretty good too.

Must admit, I've been looking at both Barrat and Redrow. Th eonly reason I picked out Barratt is because their price is so low at the minute, as Smiffs says, if they don't go bust, then long term they should be OK

[globaldiver]

Must admit, I've been looking at both Barrat and Redrow. Th eonly reason I picked out Barratt is because their price is so low at the minute, as Smiffs says, if they don't go bust, then long term they should be OK

+ talking to a stamp collector/dealer yesterday, stamp values are rocketing.

[Smiffs]

Most of them have their results out soon.

 

Now I'm no economic expert, but after 15 years working in it know a little bit about housebuilding and what makes it appealling to the city.

 

As with any business look at debts and dividend. In housebuilding, for this year particularly, I'd pretty much ignore their completions (houses sold) and profit as its shite all over. Most of them should make a small profit, or maybe a small loss, massively down from previous years but still, I'd be very suprised if they all made huge losses (unless its loss caused by huge interest payments on money borrowed for land at high prices or spent buying a rival in the last few years).

 

Look at the number of current reservations (that will indicate what they will build over the next 6 months), where they build (nationally or regionally), what they build (city centre flats or semi urban houses), and how big their land bank is.

 

If they build flats in the city and have a small land bank, stay away. Cities are awash with them already, in my opinion it is oversaturated and is pitched at a disproportional %age of society. I dont want to live in a city apartment (with a family) but a young affluent lad like Zico might. There are more fat old fcukers like me than shagging machnies like him.

 

If they build a good range of affordable houses all over the country (which the big boys do), have low debts, and a strong land bank (measured in 'plots') then they'll be good to go when things move on.

 

Finally, have a look at those who are taking the 60k starter homes seriously. Redorw have been for a while, steel framed units, prefabed interiors, cheap and cheerful, selling like hot cakes. Those who have looked down their noses at them and done them reluctantly rather than seizing it as an opportunity, might miss the boat.

[Traf]

+ talking to a stamp collector/dealer yesterday, stamp values are rocketing.

He's not wrong.

36p for a first class stamp. Up by over 20% in the last year or so.

[seasoned Traveller]

Oil without a doubt.

 

Its needed for virtually everything.....there is no way that fuckers coming down.

 

I hold shares in Rift Oil and Northern Petroleum.....in for the long haul.

 

Both have made discoveries recently and its just a matter of time before it starts being sold.

[Smiffs]

Still holding NOP, seem stagnant at the moment.

[Casino]

straight question, not trying to be clever

 

if these builders are such good investments, why are their shares good things

 

surely theres one or two city high flyers who know a bit about these things

[globaldiver]

Must admit, I've been looking at both Barrat and Redrow. Th eonly reason I picked out Barratt is because their price is so low at the minute, as Smiffs says, if they don't go bust, then long term they should be OK

Do you know how many reservations Barratt had in the NW last week?

[Smiffs]

If you held billions of pounds and had to invest it on a daily basis for investors and pensions, and report on a weekly, monthly, or quarterly basis to those relying heavily upon the outcome, would you keep your shares in housebuilding or would you ditch them and buy them cheap in a few month times?