FTSE 100 record #investments #finance
The FTSE 100 climbed to new highs this week and although this gave investors confidence, red lights flashed on my dashboard. With interest rates still rock bottom and even negative interest rates being considered, institutional investors are looking for safe havens on the stock market.
This rush to the safer solid companies of the FTSE 100 has pushed some prices up higher than they should be. They are not good value any more. I’m still looking for companies that are unpopular or have a few problems. These companies tend to be undervalued. Today the company I’m watching is Graphene Nanochem which has some good technical projects that could send it’s share price soaring. The company is also getting involved in joint ventures that looks promising. The share price dropped to 30p early this month, but touched 50p this morning.
Premier Foods has been edging up since that dropped to 30p. I have seen that price soar a couple of times in the past and I’m confident that it will rise rapidly when the value is realised by the market. The price is 44p at the time of writing and so I’m getting closer to getting back in profit with that one.
Royal Sun Alliance reported a return to profit this week, but then saw a further drop in it’s share price. A delayed reaction? I think it will climb soon, but it has been a disappointment since the rights issue. This FTSE 100 company could do better.
Since the TSB came to the market with an IPO, it has been a disappointment. I’m not too confident about it’s business strategy, rather than challenging the bigger banks, it looks to be trying to find a merger to become a bigger bank. I’m in no hurry to sell because I don’t have a replacement yet, but maybe I can find a company that offers a better return to invest in?
Tesco continues to climb, but for how much longer? This could be seen as a safe harbour now and so could become over-valued. I think Tesco is still good value though and the dividend should be maintained. I think this is one FTSE 100 company that institutional investors will favour for a while.
As well as the FTSE 100 reaching record highs, the value of my portfolio is too, so I’m doing something right. The overall return has climbed to 28%. It’s hard to annualise that because I’ve been buying and selling since 2010. I’m quite pleased with the way things are going. I think Graphene Nanotech will report profits soon and that should put me in profit too. Solo Oil is about to become a oil and gas producer as well as an explorer and even RSA might make me money now they are making a profit.
Please remember, the information in this blog, is just that and not advice of any kind. What do you think? Please share your thoughts in the comments box. You can also follow me on Twitter.