I suppose we should all have seen it coming, and perhaps many of us did to some extent, but I have been left utterly bemused by the week’s events in Downing Street following the draft Brexit proposals which look to be anything but. I thought I should look at my mini-dividend munchers portfolio to consider whether there is anything one should do, but the political events seem to be worth addressing from my little corner too.
I suppose the perhaps inevitable outcome from a Prime Minister who did not believe in Brexit was to come up with a solution which was not a Brexit at all, apparently in the national interest. Quite who decides what is in the national interest is an interesting point: if you believe deep down that Brexit is not in the national interest then you can justify a non-Brexit to yourself quite easily. It is notable that Mrs May has now lost two Brexit secretaries in a very short space of time – both of whom were actually for Brexit in the first place. That seems extraordinary: go away and negotiate with the Eurocrats and then I’ll do a deal you are so unhappy with that you resign. So what input did either Brexit secretary have to the final deal announced last week? It kind of reads as though the Whitehall mandarins or Mrs May’s own advisers (who were remainers) did the negotiating for Mrs May and the whole exercise of having a Brexit secretary was just a sham from the start. So now we have a situation where it looks as though the Brexiteers are disappointed enough to vote the deal down – and possibly eject Mrs May from No 10 – even though they won the referendum. And remainers are also unhappy enough to want to vote this deal down too! The Brexit deal appears to be neither fish nor foul.
What happens next is anybody’s guess, but I sense a cathartic moment coming for the Tories. I am just a bit too young to remember fully the rise to the leadership of the Tories by Margaret Thatcher when she challenged Ted Heath and won, but I sense that the whole set-up needs something terribly radical like that to get the country out of the political mess it is now in. And if that happens, perhaps we will get someone who might tackle the ridiculous pen-pushing which is eating at the heart of all our public services (and feeding the national debt) – seemingly, to me at least, to no great effect other than increasing workloads and making the jobs people are supposed to be doing all but impossible. It is with that in mind – ever the optimist! – that I look at my dividend munchers and see a positive outcome in the end. Indeed, with the right person and the right approach we could end up much better off as a country regardless of whether you are pro- or anti-Brexit. But it means that the Tories are going to have to re-learn their own principles very quickly and run the risk of a no-deal Brexit. I’m sure as hell that would not be a desired outcome, but from where I sit there was no need to risk all this in the first place: had Mrs May produced a plan with which Brexiteers were happy I suspect it would have got through parliament (because the referendum demanded it). But that would have required a bit more steel when dealing with the Eurocrats – which is difficult when you don’t really believe in what you are doing.
As for the dividend munchers, well they survived a market sell-off but our political woes have taken a little bit of a toll. BT (BT.A) has survived more-or-less, holding on to most of the post-results gains at 258.3p. I’m not sure how bullet-proof it will be with regard to EE if Brexit worries hit it abroad but for what it is worth I think it is worth sticking with – although I have not yet sold off the excess shares mentioned last time so I’m still hoping to offload those at above 260p. But I will continue to hold my one unit-worth. Vodafone (VOD) has also held up fairly well in that its shares have held most of the post-results gains too, but again I am a little fearful for its European businesses if the Brexit shambles takes a turn for the worse (and it can….). However, I only lobbed in half a unit in the first place so I'll take my chances and hope that dividend continues.
Centrica (CNA) seems more of a domestic affair, but its shares did slide to 145.5p – not a disaster, but the slippage was notable as we had been up to 155p. I rather fancy it is a victim of Mr Market’s changeable behaviour rather than any direct threat – although a big slippage in the £ could mean some justification for price rises is needed. The biggest faller seems to have been ITV (ITV), and I really struggle to understand why! It has precious little debt and is largely UK-focussed, although it is generating foreign sales on some programme formats – but I struggle to understand how it will be affected, unless advertising revenue collapses. Of course, if you look at the official closing price ITV ended Friday up by 6% but the official closing price of 158.7p was very different to the closing spread of 147.45 – 147.55p. Anyway, I’m happy just to sit things out here – and, indeed, look for more shares if the current turmoil continues. I may be overly-optimistic but for now I suspect better days lie ahead with these, even if there are dark days ahead for the wider uk-market. Surely common sense will prevail…..won’t it?
Filed under: BT, Vodafone, Centrica, ITV, Bearcast, KCom, Woodford, TrakM8, Telecom Plus, Stockomendation
RISK WARNING & DISCLAIMER - FiveFreeShareTips.com tips are provided by independent authors via a common carrier platform and do not represent the opinions of FiveFreeShareTips.com. FiveFreeShareTips.com does not accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at FiveFreeShareTips.com and via emails you receive from [email protected] are for your general information and use and are not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by the tipsters or FiveFreeShareTips.com and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Trading shares involves the risk of loss. The tipsters and FiveFreeShareTips.com shall not be liable for any losses or other damages incurred. The value of investments can go up or down and the past is not necessarily a guide of future performance.
Well actually it will be six. One every week day and one on Sunday, each landing with you at 11 AM sharp.
Unlike other services (which may always have a vested interest) we pride ourselves on our impartiality and cover all small caps including AIM. the Standard List, The Wider Main Market and NEX.
We cover small caps, penny shares, FTSE 350 stocks and blue chips. We look for red hot penny shares, Warren Buffett style value investments with yield and growth stocks. There is no technical analysis in our work just solid fundamental analysis from a team of experts with decades of stockmarket experience.
You will not agree with all we publish but if you are interested in small caps you cannot afford to ignore it either. Yo'll never be charged for the free share tips from Five Free Share Tips and given the star writers involved you know that they will move share prices.
There's no telephone number or postal address required and there is no charge, ever, for your Five Free Share Tips membership. Just free shares tips every day apart from Saturday And each day's share tip will not just be a few thoughts cobbled together but will be detailed analysis from experts.
Our experts do not just earn their living from writing. All own shares. If they own shares in a stock they cover they will declare it and will not sell until after advising a sell to our readers. And why not our tips are so good that why shouldn't our readers put their money where their mouth is?
Don't just take our word for it! Judge us on the calibre of our free share tips and join today to start receiving them from September 1 2017. If you don't like what you get delivered to your inbox unsubscribe and you will never hear from us again. So why not give it a go? Sign Up Now
We've put together a panel of top tipsters, including:
Tom Winnifrith, in his 27th year writing about shares, noted fraudbuster & dubbed "The maverick Tipster"
Chris Bailey, City whizz kid turned financial guru, rated as one of the top 50 commentators on shares on twitter, founder of Financial Orbit
Steve Moore, has worked with Tom Winnifrith for all bar 3 weeks of his working life - a noted commentator on value stocks
Malcolm Stacey, The Grandfather of Share Blogging, the founder of ShareCrazy & a best selling autthor of stockmarket books
Lucian Miers, the Bard of the Boleyn, one of the UK's best known short sellers
Gary Newman, writes about value investing on AIM, speciality is in share tips on oil and mining companies
Nigel Somerville, The Deputy Sheriff of AIM, an expert in forensic analysis a skill used to bust frauds but also to tip true value investments
The team from HotStockRockets, specialising in AIM and small cap shares which will fly on a three month view
Remember to book your place at the UK Investor Show 2018. The UK’s top investment show taking place on Saturday 21 April 2018 at the Queen Elizabeth II Conference Centre in Westminster, London. The show will feature a unique line-up of top speakers including Nigel Wray, tech queen Vin Murria, Dave Lenigas, Mark Slater, Tom Winnifrith, Adam Reynolds, Ed, Croft, Nick Leslau Luke Johnson and Dr Johnny Hon as well as 135 exhibiting small cap companies.
The hot share tips given here are of necessity, general. They cannot relate to the individual circumstances of investors. Anyone considering following the share tips contained here should seek independent advice from a Financial Conduct Authority authorised Stockbroker or Financial Adviser. We cannot be held liable if individuals suffer losses through following share tips contained on this site or emailed out as free share tips. The value of investments can go down as well as up. The past is not necessarily a guide to future performance. Investing in shares can lose you part or all of your capital although the potential returns are theoretically unlimited. The difference between the buy share price and the sell share price for smaller company shares (penny shares) can be significant. Profits from dealing in shares may be liable to tax - the level of tax and bases of relief from tax are subject to change. Changes in the rates of exchange may have an adverse effect on the value or price of an investment in sterling terms if it is denominated in a foreign currency. Some of the shares recommended on this site will be smaller company shares. By their nature such investments can be relatively illiquid and thus hard to trade. And that makes such investments more of a high risk than larger company shares (or 'small caps'/'penny shares'). FiveFreeShareTips.com & its sister site ShareProphets.com defines a smaller company share as any stock traded on AIM or NEX or which has a market capitalisation of less than £300 million.