Mentality and Free stocks?

Hi,

I’m really interested if you research free stocks in the same way we ideally should be if we open/add to a position.

In my hear DYOR rules do not apply in the same way as it wasn’t initially our money that was spent, even if the stock becomes ours.

Of course DYOR rules do apply in my world if you add to that position.

What’s your stance on this?

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I got 2 free shares, one was Kingfisher who just didn’t really interest me and so I sold it. The other was beyond meat and I actually added to the position. Months later and having done some research I decided to sell as it wasn’t performing well.

I think it’s tempting with the higher value free shares to try and hold? I would have been unlikely to have bought beyond meat if it hadn’t been for the free share, so it’s higher value definitely encouraged me to hold the position for a good while.

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I normally dump my free shares and add the money to my existing portfolio. One time I forgot to do it and am currently bag holding 1 share of Dr. Martens down 53%. I might leave it as a reminder.

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Has anyone ever got an etc as a free share, on any platform?

Personally unless it was in a terrible sector like there’s one for airlines*, I’d hold for life.

*I am reluctant to get involved in airlines or other such risky stocks / sector ETFs until COVID is finished for good. All it takes is another lockdown and the SP will nosedive, and it may not bounce back.

Of course that’s my 2¢.

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I got $100 Tesla share from Etoro just for doing a short survey, kept it for a while but couldn’t see myself adding to it because of the price so sold.

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Yeah I got that $100 free share for the survey from ET but chose Netflix. sold & bought Nestle which I still hold in there… Nothing else… Kind of a good job seeing as Netflix are now much further down… But I’ve since bought into Netflix with my own money via :freetrade:

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No ETC but I had a free ETF on here, maybe my first, IH2O. Held for a bit, got a tiny dividend then flogged. Unless I get one that’s already in my plans (which none have been so far) it gets sold in short order and used to fund other purchases.

Up to this point the free shares I’ve got have never been in a sector I’m interested in, so sold straight off, been fortunate on the value received though

I have to wonder if airlines are worth it, I was watching something about the US airlines like Delta and American, it was explaining about the loans they got during the Covid lockdowns.
They had to offer collateral up for the loans, in the end they offered up their frequent flyer subsidiaries, where the loan contracts indicated some level of value for that collateral, that value effectively rated all the other assets
of those airlines as worthless based on their market caps.
Effectively saying their only value was the frequent flyer side of the airline

Can’t say that applies to all airlines, but it’s worth a read about that and caution otherwise

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Kingfisher own B&Q and Screwfix which saw a massive boom in sales during lockdown (nothing else to do except DIY) and now people doing up their homes so they can WFH comfortably and have nice gardens in case of future lockdowns.

Often, it’s the boring stocks which do well :wink:

Anyway, best free share i’ve had is Microsoft which i won’t be selling anytime soon. All others, I kept for a while but recently, sold them so i could use the income for my chosen investments.

Edit - I originally mistakenly said Wickes, instead of Screwfix)

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I got SAIN and Honeywell as free shares. I’m holding Honeywell for now as it is down and I would like to see where it goes - it didn’t cost me anything!
SAIN looked good so I added to it, it’s doing well at the moment, but may sell in the future.