This morning I put into practice the lesson I learned from the weekend portfolio review.
Rather than put the proceeds of the PAF:Pan African Resources sale into a speculative purchase, I opted for one of my deep purple shares and increased my holding in GVC:GVC Holdings
449 shares at 422.7p to add to my 300 at 399.7499p making this by far my biggest stake in one company.
The impetus for the purchase was a 6% drop in the share price yesterday in the run-up to their takeover of BWIN:Bwin.Party Digital Entertainment next week. There was a prediction the share price might drop to the level Bwin investors would be getting, which will be around 422p, but the price should then rise as the company will be even stronger than it is now, which is deep purple on my spreadsheet where every measure is favourable.
Add to that the move from AIM to the main stock market due in March, and the attention from the tracker funds should lift the price even further. My target price is 1200p which may take some time, so I'm in this for the long haul.
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