Goodbye GB Group

This morning saw a fond farewell to my GBG:GB Group shares. They are a great company, and I bought the shares based on their amazing chart of steady growth. However, with my new investing criteria I cannot hold onto a share with a PE ratio of 26 when I look for 15, a 22.5 rule score of 191, a market to book ratio of 7.23 when I look for maximum of 2.5, and a price to net tangible asset ratio of 369 when I look for 1.2. The upshot is, these shares are over priced even if you factor in substantial growth, so I fear the next correction will cause a big fall. "Be fearful when others are greedy".

I immediately re-invested the capital and teensy £11 profit in TRX:Tissue Regenix. This is a speculative purchase, but based on a company that has its key product in clinical trial, no debt and a potential niche market worth $4bn. At 15.405p a share I was able to buy 3600 costing £566.53. I believe these are more likely to give me substantial growth than GB Group as they have a lot further to go, but given the risk of buying my first pharma shares, I'll be happy to stick with a small outlay and relatively small reward should things come good.

Today was one of the best days ever for my portfolio. Almost everything was blue and the deficit was improved by £450. My dream of getting it below £2000 before Christmas may not have been fulfilled, but we're heading in the right direction. Given that I got substantially more than the bid prices for my three recent sales, shows that using the bid price for my performance calculations is pessimistic, which is good for focusing the mind, but gives me confidence that the true picture is somewhere between the bid price and share price. Amazingly the share price calculation is £1,300 better than the bid price calculation, so in reality I'm probably through the £2,000 deficit already - but I'll still use the bid price as I'd rather operate on minimum possible portfolio worth.

Tomorrow is settlement day on my BAE Systems and Halma share sales, so I should be able to withdraw the money from my StockTrade account and top up my SIPP - and reveal my next pension fund purchase...