A big decision

Today I sold one of my favourite shares. SHB:Shafestbury for 930.6p. This was only a 3.5% profit of £62.05, but freed up £2,000 of capital that I thought could be doing better. Having so few shares at this high price meant that dividend payouts were small, and although one of the most sound companies I had invested in, I think a small player like me needs to focus on cheaper shares at higher quantity. If I ever make any money out of this lark, then I will return to Shaftesbury, but only when I can afford to buy 1000 shares.

The first thing I did with the freed capital was buy 2000 shares in DOTD:Dotdigital at 51.89p costing £1,049.75. I've had my eye on these for a while, as although over priced for the profits they currently earn (PE ratio of 30), there's a strong indication their profits are about to soar. They have been recently made Global Platinum Partners for Magento which is used all over the world for e-commerce, and this should open up a massive customer base. They have increasing revenues, are cash rich, have no debt and their dividend ex-date is in 8 days which will granted only deliver £7.20 but will be good for my monthly cash profit stats.

My use of the remaining free capital could be regarded as mental given the roller coaster ride GLEN:Glencore has taken me on. However, I still have faith in this company and I've been contemplating taking advantage of their current share price for some time. Now I've done it - with 1000 shares at 91.8819p costing £930.77. This brings my Glencore holding up to 1900 at an average price of 130.8813p. This is only just over the 125p that the recent listing to institutions sold at, and has been my baseline for what I don't think the share will be allowed to fall below long term. I'm hoping this will improve my chances of making up the £770 loss so far - but that's being pessimistic. The optimistic view is that I've just bought a bargain that will soar over the next few years.

The cash from my StockTrade account sales was available for transfer today, but it will take 3 or 4 days to hit my account, so the pension fund has a little while longer to wait for a new injection. My target shares have not gone up in price today, so I'm hoping they will stay where they are for a few more days when I swoop for the purchase.