The date is 30th August 2015. I've now read the Naked Trader book and have been researching stocks and adding them to my spreadsheet. I've found companies with low debt and charts that are on the rise. I just need capital to buy the shares.
My plan was to invest a little every month, but with commission to pay, I realised that I needed to up the minimum order size to at least £500, preferably more. That would mean waiting months before I could buy any more shares - but the market was still low after the China crisis, so I figured I needed to get them now. I still had loads of money in premium bonds, but that was my safe pot. I wasn't prepared to raid it.
There was one answer, but I was unsure. I could borrow the money. Borrowing money to buy shares that could go down in value - was that really a good idea?
I went to my on-line bank account to see how much a loan would cost. I was amazed. I could borrow £5000 and pay it back at just over £200 a month, which was the amount I planned to regularly invest. The interest over 2 years was only £270. Ten minutes later I'd made the application and a few days later there was £5000 in my account
It went straight into my trading account and I started buying the shares I had marked out beforehand
UCG:United Carpets. 6000 at 11.388p costing £695.78. I was convinced these were way too cheap. There was really low debt too, and reasonable profits. I still really like this one. It's broken even from the spread and commission, so every rise will result in profit. I've set a target of 20p before I review it.
UTV:UTV Media. 250 at 174.3p costing £450.43. UTV Media own Talk Sport radio, which is very popular. They have also just agreed to sell off their Ulster TV company to ITV, so I'm hoping this will give the price another boost. It's up to 185p so I've already cleared the spread and commission and have a few pounds profit. My target is 237p before I review it.
PTEC:Playtech. 100 at 846.28p costing £858.78. Playtech provide the applications for mobile gambling amongst other things. Although I'm not really in favour of the relentless advertising of these gambling "games", there's no doubt they are very popular. Playtech also have a strong acquisition policy, so I figure there's lots of potential for growth. Having said that, the shares are being bought for 811p at the moment, so not doing too well. I would lose £60 if I sold now, so I won't.
RNK:Rank Group 500 at 249.1023p and £6.23 stamp duty costing £1264.24. I bought these mainly on the strength of the chart. It seemed on a relentless rise. Rank Group run things like Mecca Bingo and Grosvenor Casinos. They pay dividends twice a year and are making good profits, so I have high hopes. So high I reckon they can treble in value, so I'm in this for a long time.
KIBO:Kibo Mining 8500 at 4.5p costing £398.83. I figured a mining company that was actually making a profit was like a gold mine - quite literally! There seemed to be high hopes, and a very positive outlook. The share has done quite well too, climbing to 5p and currently leaving me up by £13. I'm convinced it has a way to go yet, and my review price is set at 9p.
MMX:Minds + Machines 6000 at 8.3p costing £510.50. I'm dead excited about this share. They have purchased the rights to domain names that can be used instead of .com or .net. Thinks like .law and .miami. Now they have purchased the names, they are focused on marketing their rental. This seems like a great business model to me. They have already gone up to 9p so I'm showing £17 profit and the marketing and revenues haven't even started yet. I think these could easily top 200p a share eventually. That would be £11,000 profit!! Maybe a tad optimistic, but it's fun to dream.
WRL:Wentworth 2000 at 32.49p costing £662.30. This one's a bit of a risk. I bought it on the back of news that they had started supplying through a new pipeline to Tanzania. I figured they had been through all the exploration and drilling and losses, so now it should all be about reeling in the profit. The price has dropped slightly, but not enough to worry about. I'm setting 70p as my target for review when they start making a detectable profit.
NTBR:Northern Bear 999 at 55.8p costing £569.94. I was led by the chart on this one, and stable profits over the last few years. I decided construction was still a booming area, at least until interest rates start going up. I've set my review price at 150p so I'm either optimistic or delusional.
So that was it - my £5000 seeder fund was sown. Problem is, I'd found more shares I really liked, and the excitement of the research was intoxicating. Did I really need all those premium bonds? Surely I could cash a few in...
No comments:
Post a Comment