When I started thinking about this portfolio idea, October 31st was going to be the absolute, for-sure, set-in-stone date for Brexit. Great Britain would be leaving the European Union, no matter what.
It looks like it will be yet another symbolic date with not much actual change happening, however, one things is fore sure: Brexit is happening and it will impact companies.
So this month, I’m taking a look at the companies on the London Stock Exchange.
It’s widely believed that a Brexit, deal or no-deal, will have a negative impact on British companies.
One could argue that this is already calculated into the value of many companies.
However, what if it turns out Brexit is not as bad as people think? Wouldn’t it be interesting to investigate the most oversold British companies at the moment and see if they may be better of than expected.
The RSI or Relative Strength Index is a number ranging from 0 to 100 that indicates how much the price of a stock has recently changed:
It is a technical indicator for the momentum, which means how much the stock has been moving up or down lately.
Another indicator that you may want to look into is the Moving Average Convergence Divergence.
This month’s criteria is looking for the biggest companies on the London Stock exchange that are oversold:
|Symbol||Name||Current price||Enterprise value||RSI|
|TSCO||Tesco PLC||2.41 GBP||46.46B USD||24|
|RBS||Royal Bank of Scotland Group PLC||2.08 GBP||592.69B USD||32|
|GSK||GlaxoSmithKline plc||17.45 GBP||143.51B USD||35|
|STAN||Standard Chartered PLC||6.84 GBP||482.83B USD||40|
|BVA||Banco Bilbao Vizcaya Argentaria, S.A.||4.77 EUR||541.80B USD||42|
|GLEN||Glencore plc||2.45 GBP||76.29B USD||45|
|RIO||Rio Tinto Group||42.09 GBP||106.55B USD||46|
|IBM||International Business Machines Corporation||163.14 USD||188.63B USD||50|
|INVP||Investec Group Ltd||4.19 GBP||42.62B USD||62|
|AAL||Anglo American plc||18.71 GBP||40.56B USD||50|
Note that limiting to the London Stock Exchange does not guarantee these are British companies. I’m going to leave these in, because it’s hard to create good criteria of when a company is really British or not.
Thanks to Uncle Stock for selecting this diversified portfolio.
My philosophy: If you want to invest and your goal is to try to beat the market, you need a system. You need a system that can decide for you what to buy, when to sell and not to panic when things go down. Everything starts with selecting stock. You should not just select random stock here and there based on whims or things you read. No, create a system that suites your style and follow it. These posts give you example of what such a stock selection could look like.Unless otherwise noted, I do all my research through the Uncle Stock screener. It's a great tool to have in your belt. (note: this is an affiliate link, if you sign up, I get a commision)
Disclaimer: Don't believe anything I say or write. Always do your own research before making any investment decisions.