As the UK gears up to for the Black Friday and Cyber Monday weekend we highlight some potential bargains for investors.
Investment Tips for Black Friday
This Black Friday and Cyber Monday weekend consumers in the UK are expected to spend a record £8.57 billion on bargain buys as shoppers are expected to spend an average of £224 each, 11% more than last year.
As many shoppers are warming up their laptops and mobiles in preparation for bargain-hunting, savvy investors could be thinking about how they could get the bang for their buck all year round.
Bargain basement stocks
It’s hard to resist a bargain and Black Friday has become an important day for retailers and a chance for the public to scoop up some deals before Christmas. It’s also a good time for investors to take a look at whether there are any bargain investments to be found in the market at present.
Our Investment Guidance team recommends the following:
- Mulberry – an attempt to go even more upmarket backfired and the collapse of certain UK department stores haven’t helped but its posh handbags remain a popular gift for Christmas
- Aston Martin – if you can’t afford the real thing then a share in the company may be one to consider, currently trading at below a third of the IPO price Aston Martin may be late to the game but the release of its first SUV model is all important and has the potential to turn its fortunes
- Dixons Carphone – the shares trade at a fifth of their value from back in early 2016 as the UK high street suffers from economic uncertainty and the transition to the online market place along with lower margins on phone contracts. But a low forward P/E could been seen as attractive for a company restructuring and feeling the lift of the Brexit uncertainty
Make every day a Black Friday sale with shareholder perks
Investors have a unique opportunity to benefit beyond Black Friday sales, not only from shares trading at a discount, but on the products sold by the companies too. Many retailing companies from bookstores to clothing brands offer their shareholders “perks” or “benefits”, traditionally in the form of discounts on their products.
Some attractive examples of shareholder perks* in the retail sector include:
- Owning just one share in Bloomsbury Publishing qualifies shareholders to 35% off its books – a perfect Christmas gift for anyone you know who loves to bury their nose in a novel!
- N Brown Group, which includes brands such as Jacamo and Simply Be, offers shareholders 20% off its catalogue prices.
- Moss Bros also offers all shareholders an annual 20% discount on full price items.
- For those looking for luxury, shareholders in Mulberry, who hold at least 500 shares, are entitled to a 20% discount card to use in most Mulberry stores.
Give kids a head start through cashback
If there happens to be a deal you just can’t resist this weekend and you have a Junior ISA, think about linking your account to KidStart. Shopping through KidStart means parents can build their children’s savings for free whenever they make a purchase through one of the thousands of online retailers. Using cashback websites for your online purchases could potentially earn you several hundred pounds for a little extra hassle. The website could be a clever way of adding to your children’s savings pot while doing very little. You can also use it to save for nieces, nephews, grandchildren or friends’ children too, if you don’t have any of your own. The money can also be donated to a school or children’s charities.
Lucinda Gregory, our Investment Research and Guidance Manager, comments:
“Everyone loves a bargain but with increased doubt over the value of Black Friday deals, investors should take a look at the discounts already in front of them. It’s worth doing a bit of research to see if there are any bargain investments to be found in the market at present but make sure you know exactly what has caused a share price to fall and ensure it is not due to a problem that is likely to be repeated. A lot of investors are unaware of cashback sites and shareholder perks and while investors should never buy stocks solely for the discounts the company has on offer, there are companies offering discounts without significant investment required. But if there is a bargain you just can’t resist this weekend, be sure to link your JISA account to KidStart and see if you can put some money away for the kids while you’re spending your cash!”
*Shareholder perks are not reason alone for buying shares in a company. Over time, shares and any income they pay will rise and fall in value, so you could get back less than you invest. Some companies may have terms and conditions with discounts. For more information please visit.
All information given including prices, yields and our opinion is correct at the time of publication. Our opinions on investments can change at any time and for our latest view please go to www.share.com. To understand how our Investment research team arrive at their views please read our Investment Research Policy.