Each week, I’ll be writing about a new share tip that I’ve seen throughout the stock market and investment world. It’s not a personal recommendation or personal advice.
Make sure you regularly check in to find out the top share tips today UK.
For further reading on stocks and shares tips, why not check out my 10 Best Stocks and Shares to Buy Now?
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| Share Tip | Glencore (GLEN) |
| Overview | Glencore is a natural resources company that mostly specialises in the production and marketing of different minerals. As well as procurement of minerals, the company also refines, processes, stores, and transports metals, energy, and agriculture products. |
| Share Price (as of 20/06/2022) | 463 pence |
| Pays Dividends? | Yes |
| Where to Buy | Buy from eToro Your capital is at risk. Other fees apply. For more information, visit etoro.com/trading/fees. |
Please note: this share pick is not a personal recommendation or investment advice. Do not buy these investments solely based on what you read in this article.
With 135,000 employees worldwide, Glencore is one of the largest natural resource companies on the planet. Overall, it has around 150 mining, metallurgical and oil production assets, operating in more than 35 countries.
Glencore doesn’t just stop at mining and metallurgy though – they specialise in the refining, processing, storing and transportation of energy and agricultural products, too.
In an attempt to offset its carbon footprint, Glencore is also a market leader in copper and other precious metal recycling, and the company aims to procure commodities in a responsible way by being active at every stage of the supply chain.
As of the morning of 20 June, Glencore’s share price rested at 463 pence. The business has had a relatively strong year of trading too; its share price has steadily climbed from 387 pence on 4 January to the prices we’re seeing today.
In fact, despite a considerable dip to 119 pence on 20 March 2020 as the Covid-19 pandemic began to affect economies around the world, Glencore is currently experiencing some of the strongest share prices it has ever seen, well above pre-pandemic levels.
This is great news for the company considering that, in 2015, its very existence was called into question after share prices tumbled severely to lows of 78 pence following a slump in commodity prices.
By raising extra capital from shareholders and detailing plans to eliminate existing debt, the company managed to recover to the soaring share prices we’re seeing today. In fact, compared to their all-time low in January 2016, the company’s share value has risen by an astronomical 550%.
Commodity prices are on the rise, which Glencore is poised to profit from
While rising commodity prices may have negative effects on some aspects of life, it may understandably be a good thing for a natural resource company.
As mentioned, Glencore is fairly diversified, so while it does produce minerals, the company also procures and sells them in different markets for a profit. Due to price differentials across energy markets around the world, Glencore has been able to source coal cheaply in one market, then sell it on in another market where the demand is higher.
Glencore’s trading and marketing arm is also performing well, forecasting half-year adjusted earnings before interest and tax of $3.2 billion.
Furthermore, based on FTSE 100 growth projections, Glencore is selling on a price-to-earnings ratio of 4.2. For a company that’s expected to report over 100% earnings growth this year, this is relatively cheap.
This could make Glencore a potentially lucrative buy for investors. So, if you’re looking to diversify your portfolio with a natural resource company, you may not have to look much further than Glencore.
- Choose a broker and open an account.
- Deposit money.
- Research investments.
- Buy your shares.
1. Choosing a broker
There are lots of different brokers and platforms out there you can use to invest. Each one will come with its own benefits, so you should ideally shop around for the one that best suits your needs.
For example, some broker accounts have different fee structures, meaning you may be better off choosing one with less commission on trading if you plan on investing in large amounts of shares.
Which investment account is the best?
As mentioned, there are a plethora of different brokers out there you can use to trade. This guide will only look at a few, but read my comprehensive guide on the best investment apps if you would like to find out more.
eToro
- Minimum deposit £50
- 0% commission when you buy and sell stocks
- One of the best investment apps in the UK for beginners and low-cost trading
eToro offers a wide selection of different company shares, exchange-traded funds (ETFs) and more.
If you aren’t as confident making investments or want to learn more, eToro may be ideal for you as they have a practice mode that allows you to “invest” with virtual money that gives you a feel for different markets.
They also have a social investing feature that allows you to copy the investments of other experienced investors.
As for fees, eToro is competetive. Opening an account is free, there are no management fees and there is a 0% commission on trading shares. There is, however, a withdrawal fee of $5 and a variable fee for converting currencies.
Your capital is at risk. Other fees apply. For more information, visit etoro.com/trading/fees.
Interactive Investor
- Minimum deposit £0
- Fees – £9.99 a month + £7.99 per trade
- Good investment app for DIY Investors
interactive investor is another great broker for investing in shares. While they do offer a decent selection of different instruments, there are typically more costs involved.
You will be required to pay a flat fee of £9.99 a month, though by paying this you have access to their regular trading service which has no trading fees. You are required to deposit at least £25 a month for your account to stay valid, however.
The flat fee also includes access to their Stocks and Shares ISA and a Junior ISA, and for an extra £10 a month you can also access their self-invested personal pension (SIPP).
Capital at risk.
Hargreaves Lansdown
- Buy and sell shares at £11.95 per deal online, reducing to just £5.95
- Hargreaves Lansdown is a FTSE 100 company, trusted by over 1.5 million clients
Hargreaves Lansdown offers a trading account that gives you access to a wide variety of instruments.
Better yet, you can open an account with as little as £1. You should keep in mind, however, that they charge an annual fee of 0.45%.
This means that if you are looking to invest large amounts of money, it may be worth going for one of the other brokers, since the more you invest the more you will be charged.
As with any investment the value can go down as well as up. Past performance is no indicator of future performance. The tax treatment of ISAs depends on your individual circumstances and may be subject to change in the future.
2. Depositing money
When you’ve decided on your broker, you next need to deposit money to the account. Most platforms and brokers will allow you to do this online using a credit or debit card.
Some providers may charge for deposits, so you should double-check this first to make sure you can cover the costs.
You should ideally only deposit the amount of money you intend to invest. This is because you are unlikely to earn interest on any uninvested money with a share dealing account.
3. Researching investments
When you’ve deposited your money and are ready to invest, you should next do some research to find out which companies you want to invest in.
Of course, you aren’t expected to do deep analysis before you invest, but doing some research beforehand can go a long way in informing your decision.
For example, a company’s share price may look favourable, but what about the price-to-earnings ratio – that is, is the cost of the share reflective of the company’s underlying performance?
Similarly, a company’s dividend yield could also hold important information about how a business is performing.
Staying up to date with industry news can also be a great way to influence your decision when it comes to investing. For example, if a company is releasing a new product, they may experience a period of growth.
You may be able to find all this information and more on your chosen broker account, or you could use an external app, such as Yahoo Finance.
4. Buying your shares
Now you are finally ready to purchase your chosen shares. All it takes is searching the company name or ticker code on your chosen brokerage account, inputting the number of shares you wish to hold, and placing the order.
Depending on the country the company is based in, you will likely need to wait until the markets are open.
The UK markets, for example, are generally open Monday to Friday, 8 am to 4:30 pm GMT. Markets in the US, however, still operate Monday to Friday but are instead open from 2:30 pm to 9:00 pm GMT.
Long-term buy or short-term hold?
As part of buying your shares, you’ll need to decide on how these fit into your overall investment strategy, too.
Short-term investments are typically held for a year or less. Instead of trying to make a return from steady price increases over time or dividends, short-term investments aim to earn profit from volatility.
This means that the share price increases and decreases often, so investors aim to speculate and sell when the price is higher than when they bought the investment.
Long-term investments, however, are investments that are held for well over a year. Investing in this way is typically about targetting slow and steady gains over a period of years.
For example, airline stocks have a track record of slow and steady growth which could make them the ideal long-term hold, a history proved by their past performance. Of course, Covid has had an effect on airline stocks, which is why you should use your research to try and predict any eventuality.
Some investors may also hold certain shares because the companies have generous stocks paying dividends.
Make sure you choose the strategy that most suits your investment aims. You could even consider combining the two to give you the best of both worlds.
One of the hardest parts of investing is deciding which companies to purchase shares in. While doing your own research can give you a good idea of who may perform well, there are many different websites and services that offer tips on companies to keep an eye on and to inform your investment decisions.
Investing Reviews monthly share tips
Analysing data for companies can get fairly complicated, which is why my guide for monthly share tips could help you decide which companies to potentially invest in.
We analyse the data and news for you to save you the headache, then offer our share tips each month for you to consider.
Check out the latest list of the best stocks and shares to buy right here.
The Sunday papers
As well as our own share tips, it may be worth scanning the different Sunday papers to assess the different share tips that are given.
Even though the share tips may differ from one publication to another, assessing information from lots of different sources could give you a wider understanding of potentially good investments.
The Sunday Times
The Sunday Times is one publication that regularly offers share tips. As one of the biggest newspapers in the world, the Sunday Times has relationships with experienced analysts and market experts who can provide insight into potential investments.
For example, the Sunday Times’s Lucy Tobin is a vastly experienced personal finance writer. and now even edits the Evening Standard. She often contributes in-depth analysis on the latest stocks and shares for you to consider.
The Mail on Sunday
The Mail on Sunday offers share tips on a regular basis that are worth keeping an eye on. They also write articles that speculate on potential forecasts that are great for getting an idea of how experts think the markets will move.
Financial Times
While the Financial Times is typically more focused on financial news, they do offer share tips too. They have a section named “Investments” that as well as tips on investments, they also regularly provide current industry news that could give you an idea of companies who might be a good long term investment.
Investor’s Chronicle
The Investor’s Chronicle is another great source for share tips. This publication is all about the world of investing, and offers a focused look at why their stock picks may potentially perform well.
On broker and platform websites
As well as my monthly share tips and those from the Sunday papers, you can also use some brokers and platform websites to discover some share tips.
Hargreaves Lansdown, interactive investor and eToro all produce articles that give stocks and share tips.
As mentioned, eToro even has a social investing feature that allows you to see what experienced investors are doing. This may give you an idea of the companies to watch out for.
Of course, you shouldn’t just take the share tips from one source, you should scan lots of different sources and then use the information to decide which company would be best for you to invest in.
Please note
Share tips are not personal recommendations or advice and should never be treated as such.
The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance. Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.
