On my last post I jumped the timeline a bit, as I wanted to write about buying and selling the Ocado shares. Before reading the Naked Trader book, I did buy a few more. I added another £1500 to my account, which pretty much cleared out my Building Society savings.
On 21st August 2015 I bought 130 shares in BA.:BAE Systems as I figured they would still get lots of business. That set me back 451.9p a share at a total of £602.91 with the addition of commission and £2.94 stamp duty. Things have been a bit up and down for them, but I think this one could go up a lot as they have a massive order book.
On 24th August, after watching Countryfile and a slot on the potash mine being developed in the North York Moors National Park, I bought 1000 shares in SXX:Sirius Minerals at 17.32p costing £185.70. This was before I'd read the book - now I would buy no less than 30000 of these to make it worthwhile. At the time I thought it was risky buying shares in a company not likely to make profit for several more years. In fact, with what I know now, I'd probably have waited 2 years to buy them when the company was showing it could make money. For now I'll keep them as a reminder of what not to do. I could sell them now at 17.75p which is more than I paid or them, but would lose £20.70 on commission, so I'll keep hold.
On 28th August I bought what could have been my biggest profit-making share. AFPO:African Potash was selling for 1.876p a share. I bought 15751 at a total cost of £307.99. They rocketed up to 3.2p each. I could have sold them for £183 profit, but I was so impressed with the stock that I bought another 12109 at 3.2p for £399.99. You can guess what happened next. They dropped back to 1.85p, which was less than I'd paid for the original lot and is currently giving a loss of £205.07. This taught me that AIM market shares can be extremely volatile.
However, sticking to my guns about research, I still like this share and I still think it will give big gains. The company have signed up a whole batch of contracts to supply fertiliser. To begin with they will be commodity trading, and using the profits to fund the potash mine so that they will be able to switch to supplying from there when production is up and running. This seems like a really sensible approach, so I'm fastening my seatbelt and sticking for the long ride.
The next post will see me take a whole new direction.
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