The Buying Opportunity thread for Long-term hold (not trading)

10th Mar '22 by turbo

10 comments 1048 reads

I would echo Pauls comments on yesterdays SVR thread when he said

I’ll (Paul) be getting my chequebook out, with some early purchases of bargains on my watchlist. Selectively, I think there are some really attractive buying opportunities out there right now.

I am feeling worn out and demoralised with trying to stay afloat with my portfolio with the current market volatility. I think my portfolio must be down by around 25%, maybe more.

But I’m thinking we can perhaps turn this current situation into a positive by transferring money from not so great shares we own into much more solid shares that may currently be priced at bargain prices. But these shares must be meet certain criteria so that we can feel comfortable holding long term; such as ability to weather market volatility, good long-term upside, as well as being at a bargain price. The hope would be that we could look back 3-5 year from now and feel we made a good call in a difficult situation!

I’m sure many others are thinking along similar lines, would be great to hear what shares you think might fit the ‘buying opportunity for long-term hold’ requirement.

Henry Boot (LON:BOOT) is one such candidate on my list (not sure if it is at a bargain priced yet…)

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Rusty2

10th Mar '22

A lot of the insurance companies are looking good value and some pay out a decent dividend as well, I would consider Beazley (LON:BEZ), Legal & General (LON:LGEN), Phoenix Group (LON:PHNX) and Lancashire Holdings (LON:LRE)

I currently hold the first 2.

I also hold some Henry Boot (LON:BOOT) but not sure about them.

turbo

Beazley (LON:BEZ) is also on my watchlist. Re; Henry Boot (LON:BOOT), I was encouraged by Jack's writeup on a recent SVR thread; this caught my eye

"Nevertheless, Henry Boot strikes me as a dependable operator - it has been around for more than 130 years, after all."

and

"It pays a dividend, but at 2.31%, it would hardly make up for a stalling share price... I like the company though. It seems like a safe pair of hands, and the price to tangible value of 1.12x is attractive.

It’s a cyclical industry, so if a recession hits then all bets are off for a while but I would think this is one company that would survive a downturn. The dividend track record suggests as much."

Yes, it's the recession part that puts me off buying anymore £BOOT.

Beazley (LON:BEZ) has some cyber exposure now, which may account for the recent fall.

23rd Mar '22

Henry Boot (LON:BOOT) reports results ror Year Ended 31 Dec 2021, looks to be ok, and confirms my decision to select Henry Boot (LON:BOOT) as being a suitable candidate for ‘buying opportunity for long-term hold’

FY pretax profit 35.1 million stg versus 17.1 million stg year ago
FY operating profit rose 103 percent to 35.6 million stg
FY revenue rose 3.7 percent to 230.6 million stg
FY basic earnings per share rose 135 percent to 21.2 pence
Have also made a very good start to year, building on strong momentum across group
Proposed final dividend of 3.63p (2020: 3.30p)
Also progressing well in realising our medium-term strategic targets.
Henry Boot - immediate outlook for our markets remains positive with high levels of occupier and investor demand for industrial and logistics space

Tim Roberts, Chief Executive Officer, commented:
"Strong demand within our three key markets of Industrial & Logistics, Residential and Urban Development has helped us to achieve a good set of results. By continued investment in our significant pipeline of opportunities and using our strong balance sheet, we have achieved material growth in the business and secured attractive returns for our shareholders. Whilst there are pressures facing the economy and the industry, particularly inflation and supply restrictions, we continue to manage these effectively. We have also made a very good start to the year, building on the strong momentum across the Group, with high levels of forward sales in land and housebuilding, further leasing of our developments and a full order book in construction."

Was hoping others might suggest more possible candidates as ‘buying opportunity for long-term hold’....

Bigtim

I've some life insurance exposure too (£LGEN and Phoenix Group (LON:PHNX)) for similar reasons. With rising interest rates and a recent, desperately unfortunate, uptick in mortality, they surely must be on for rising profits? Meanwhile they are paying inflation proofing dividends whilst you wait.

Phoenix Group (LON:PHNX) vexes me though: some stakeholder pensions I set up for the children and which were ticking along happily enough got transferred to "Reassure" which is a trading name of PHNX. the experience as a customer is terrible. 2 years on it's still not possible to access the accounts online as I previously could with LGEN and my written instructions were not followed properly resulting several phone calls and letters to get it resolved (I only wanted to do a fund switch - it took months). I'm happy taking the dividends but I will move my childrens' accounts to vanguard as they come of age.

Snowbum

Emmerson (LON:EML) , Solgold (LON:SOLG) , Bluejay Mining (LON:JAY)

Not looking to pitch these but as there is no coverage of resource stocks in the SCVR, you might find it worthwhile to complete some DYOR’ing , I hold all three.

BnB

"Reassure" which is a trading name of PHNX

Tell me about it. Took me a year to close down a trust and extract the money, most of it spent on hold.

AnonymousUser1822519

24th Mar '22

I just bought into Iog (LON:IOG) . Its very under the radar right now, which is the best time to get in.

North sea first gas sales announced. Forecast sales of £222 million this year(Market cap £212 million) with cash profit of £188 million(from IC).

Stockopedia 12 month forecast rolling: PE 1.9; EPS growth 338.8%.

Technically, just broken into new highs.

This is a multibagger opportuntity at this price, and for long term hold. You can thank me later:)

4th May '22

I'm adding Kingfisher (LON:KGF) to my list of candidates for aBOLT (‘a buying opportunity for long-term hold’).

Here's a thread on this stock.

The Buying Opportunity thread for Long-term hold (not trading)

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Turbo

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