Wednesday 20 July 2011

Still long BskyB, added more to Lloyds at 42.7p

I am going to stay in Bskyb(they are currently £7.42) from £6.96. £7 looked like support to me and now there is talk of a special dividend of up to £1.30, as they generate so much cash.

I have now added to my holding in Lloyds at 42.7p. I have taken a beating on them this year but they are trading well below even book value, due to the Europe debt fears. My target is 50-55p before I think about selling. This is a very risky trade to be in but I am a contrarian and go against the trend, when I think a company is undervalued.

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