I bought shares in an Irish Company at €21.00. By the time I had paid Stamp and Commissions they cost me €21.56 each.
The share price has fallen 56% since then and now stands at €9.15. Sounds bad enough.
However if I sold the shares today I would only net €9.00 after paying commissions. I would therefore need the share price to jump by 140% before I would break even.
I think that you could do the same sums for many other Irish shares. I now need my shares to go up to 2.5 times their current price for me to get my money back!
Perhaps this is a strong argument for pound cost averaging. Maybe I need to buy twice as many shares again so that I would only need to price to go up to 1.5 times the current price.
I find it amazing that institutions can still advertise that Shares produce the best long run returns.
Hardly a long term position so? However I agree with you that the costs (stamp duty, broker fees/commissions/administration charges etc.) of buying and selling Irish shares are arguably excessive.
However I need to make 140% growth to get my money back. If the share price grows by 14.5% over the next 8 years I will catch up on the amount I would have received if I left my money on deposit.
If these type of returns may be available then maybe I should go double or quits, in which case I would only need prices to rise 7.5% over the same period.
For my tuppence,if George Bush Goes to war within
the next 3 weeks, all stocks will slump,
maybe it's time to lick your wounds and sell. and possibly buyback at a cheaper rate
2 years ago I bought shares at approx £20 they then dropped
to £10 I bought more trying to spread my losses if they
went up, I sold for £6,and they are now worth 1.75
Unless shares are in Financial or medical (I think you might have ELAN) I would sell.
But that's me
Two counterpoints:
<!--EZCODE LIST START--><ol><li>nobody can predict the future</li><li>past performance is no guide to future returns</li></ol><!--EZCODE LIST END-->
by my rough estimates vodaphone shares will have to rise to approx five euro in order for eircom investors(?) to break even. I figure this is what will be required to recoup the losses on valentia. Are my figures correct?
sort if irrelevant anyway, as a bad horse in the grand national would probably be shorter odds.