UK Covid Recovery Play

Have a butchers at the broader UK index though, ie the FTSE250. It’s actually outperformed the SP500 over the last six months, this surprised me too when I was looking into it!

The FTMC obviously being the FTSE250


Hi, I don’t quite get the UK recovery angle for many of these shares. LLOY, housebuilders I get.

HSBC (heavily reliant on far east etc, oilies, cigarette companies. These aren’t really driven by how well the UK fairs. Also HSBC, oilies earnings and divis are in US $ so not fairing too well either.

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You’re quite right. I think many were driven lower by a general desire to exit the UK equities markets, which I guess was driven by the pandemic. Therefore, as the UK economy in general recovers, I would expect the shares that suffered to, indirectly, recover.

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I personally have a lot of holdings in the FTSE 250 as I feel that is where the Growth is going to lie in the future.

Very bullish on BritVic, QinetiQ and B&M (recent FTSE 100 Company), and think GSK will do well in a few years time.

Although I understand the risks with the strategy as the UK Market is mostly unloved overall, the former two I feel are defensive plays (feel that Beverages are underrated over here and having a Military Stock is a good thing with zero debt) and the latter is more aggressive in the Retail space.

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Yep just not a space I know much about so I currently don’t invest in it, also I am unsure of UK over next few years post virus/brexit so mostly going for UK companies with international exposure hence HSBC, ULVR, DGE etc

This sounds like good news for a UK recovery all


Saw that today, good news.

I’m so confused why Wizz Air is at all time highs…I get it has a bright future but damn it’s a bit premature…

Well they do say the market prices in 6-12months ahead.

But you’re right it seems way premature

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Tesla is going popppy pppopopop


Yes I just managed to close out my short position, I did hit a few “max qty for this instrument is 0” so things are happening.

And this is exactly why they didn’t want it in the index.

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What is the news on Tesla then?

Massive drop? Drop and recover?

Overvalued more than other highly valued stocks, so drops more. Still overvalued so could drop more, or Tesla bulls could buy in at a certain point and support. Who knows, not me.

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The Beta is handy in times like this. I’m not sure in its accuracy the decimal, or if it’s coincidental but there does seem to be some correlations between the stock prices ups and downs and the beta number.

Obviously if there is a sheer reversal to value say, then it would be meaningless.

What’s everyone’s thoughts on CTY as a good recovery play in the form of a trust?

That’s not a bad shout at all. I’ve come to prefer trusts over individual companies for income plays. They can build up a cushion, so even if RDSB, LLOY etc suspend dividends as happened, they can continue to pay out. Lots of options in the UK equity income sector too.

Any thoughts on Rolls Royce?

I’m looking into GraniteShares x3 Long for RR with cost averaging of course. If RR goes up 33.333% I’m up 100% but also means if RR goes down 33% then I’ve lost a large chunk of money :pensive:

I still believe RR is a strong company and has a good future in the next couple of years with aircraft engines to cars etc…

What’s your thoughts?

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FIDELITY SPECIAL VALUES PLC (FSV) ETF looks promising as a longer term investment for those keen to stay within the UK borders, quite diverse across sectors and companies as well (they advised 80-120 stocks managed), might go for it as we slowly climb out of this lockdown.
(just my thoughts anyway :slight_smile:)

Just had a look at what they invest in and it is heavily weighted to Financials such as L&G, John Laing, Roche and Aviva (3 of those being overweight in the fund).

I have 2 of those 4 but feel that they are heavily in Financials and Tabacoo (They have British Imperial and British Amercian Tobacco), which would personally put me off of the fund.

It’s not a bad fund but they mention Unloved Stocks and half of those are pretty popular.

L&G and Aviva are strong stocks at least and will climb post Lockdown .

The whole lot is in airlines for me - AA, IAG, Easyjet, Boeing, Airbus, Tui, Ryanair, Air France, KLM, and now ground handling like Menzies - up 29% this week alone