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Posh panic #investments

Posh boys panic

At one time all the traders in the City of London had East end accents. Now they are all Oxbridge educated and talk posh, they also panic when sentiment goes against the market.  They don’t appreciate that they are the sentiment. So the Shanghai composite took a dive on Monday and we saw posh boy panic in London.

Someone said there is never a bad day on the stock exchange, when prices are up, sell and when prices were down, buy. Prices are definitely down and they plunged even further this week. It is a brave small investor that buys when people are talking about a market crash though.

Posh boys

I bought Debenhams and ITV. ITV because they are likely to buy out the television rights of UTV in Ireland. I’ve thought Debenhams was undervalued for a while, but I might have called that wrong on Tuesday. They are over 4% down today and no news to blame on the fall. I suspect a bit of trading on inside information. We shall see. That’s the problem, the posh boys have the old boys and girls networks to tap…

Meanwhile, I’m still waiting for Solo Oil to start pumping oil and gas. They seem ready to do so in Tanzania and their Weald Basin play in the UK looks promising too. The share price is 0.55 (ask) this morning with a massive 10% spread. I suspect the market makers are trying to slow down the buying and selling while they build up a stock.

The FTSE 100 is down at the time of writing, but there is some interest in the AIM market and that is up around half a percent.

Premier Foods dropped earlier with week and didn’t really recover. That is one that appears to be a bargain, but I already own too many. I have noticed that many brokers in the US are watching Premier Foods and so it could be a takeover target.

There is still speculation about RSA insurance, I expect the takeover by Zurich to go ahead. It’s in everyone’s interest, with the offer at 550p a share, which seems not only agreed on, but a fair price.

Monitise share price dropped like a brick after I bought, but they seem underpriced now and the price is creeping up. They need another joint venture or another deal with a bank.

Since April, Tesco has dropped from 250 to around 190. I’m sure that is underpriced too. They are suffering from competition from the likes of Aldi and Lidl, but Tesco has a much better stock. I popped into Aldi and Asda this week. I was in Asda about an hour because it takes longer to get around and the checkouts are so slow. At Aldi I spent the same amount of money in 5 minutes and didn’t have to wait long at the checkout despite a longer queue. I don’t think Tesco really need all the lines it stocks and seems to waste floor space. They need to improve service to get the sales. Tesco isn’t as posh and middle class as some people believe, they have to cater for everyone.

Austerity continues in most European countries and to a lesser extent in the US. We buy less from China and so China’s economy slows. If anything the world economies should be booming, with an oil price lower than $50 a barrel. Maybe austerity isn’t the way forward after all? I think we will see more posh panic as the world markets become more volatile.

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