I have 245 shares in the newly floated Standard Life. Should I sell now or are they likely to rise shortly?

Answer 1

This question largely depends on how much that amount of money means to you. If you already have a balanced equity portfolio then you would know the answer.

I will assume that you do not, but that you do have a reasonably sized with profit policy with Standard Life. Standard Life half year results are due out on 27th September 2006, and so if you sell before then (barring a complete stock market crash due to WWIII breaking out) you should be safe.

After that date you may (or may not) get a pleasant or unpleasant surprise change in the share price. It really depends on whether the results are good.

There is a 5% bonus and a dividend due in May 2007, which may or may not appear significant to you. The question is this, what would you do with the money if you sold the shares?

If the answer is put it in a bank account earning 4.5% interest gross, then is it worth doing for the safety side of your finances?

If the answer is spend it on a one-off purchase that you always wanted, like a holiday, then go for it. 5% of 245 = 12.25, which is roughly £30. Is it worth waiting a year for or would you rather spend now?

The share price may rise by 10%-20% in the short term with really optimistic assumptions and results, but they are not going to give you returns of 200% - 300% realistically in the short term.

Equally the share price may fall by 20% in the short term with pessimistic assumptions and results. There would be a major disaster at board level if they fell much more than that before you got your dividend and your bonus.

All in all it is really something which is quite personal to your circumstances, rather than something which can be answered with a simple yes or no reply.

Answer 2

Hang on to them until you get the bonus shares next year.

Then decide whether to sell and put the proceeds in a bank a/c or keep them and take a chance for bigger profit or loss.

Over the years insurance shares have not been very good, but the future is unknown.

Answer 3

Keep them for the rainy day.
Shares have been a solid investment over the years, and have tended to grow in value.

Answer 4

Ha Ha Ha Ha Ha

Answer 5

Stick with them you will get extra shares after a year.Shouldn't go down but are you a gambler?

Answer 6

change em to 900 or 960 by end of month,

Answer 7

who knows? that is the nature of shares!!

Answer 8

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