Never mind eh - that means there were bargains to be had so I did a bit of shopping.
I had a small amount of cash in my ISA from dividends, and as I don't usually buy anything for less than £500 in a transaction due to the percentage increase it takes to overcome the commission, I was concerned that this wasn't working to earn me any money, and I can't add to the account until April as I've maxed out this year's contributions. I remembered a share I noticed in August. FAST:Fastnet Equities. At the time they were an oil exploration company, but decided there was no money in oil and sold their assets, forming an equity investment company with a big pot of cash. They haven't invested in anything yet, but I decided if they have the sense to get out of oil just before the price collapsed, then maybe they have the sense to invest in something sensible. I therefore went against my usual rule and invested a tiny £145 buying 5508 shares at 2.47p. Since then the bid price has almost caught up to my purchase price so I've got rid of the spread, and now just have commission to get back.
My other bargain hunt went a bit wrong. I had transferred £800 into my share account because one of my most successful shares UTW:Utilitywise had almost dropped back to the price I originally paid for them before they climbed and I sold for £350 profit. I put in a limit order for 143p but tragically they didn't quite drop far enough and have now rebounded to 169p. I decided that if I couldn't repeat my previous success, I couldn't actually afford to put £800 into a new share without selling something else, so decided to return £400 to my bank and transfer £400 to my SIPP to join the £200 from the tax man. Unfortunately I chose to bank the £400 first, which resulted in the website refusing to let me transfer the other £400 as there was a pending transaction. Grr! I'd been watching TSG:Trans Siberian Gold for some time but had been put off by the recent price rise. However, the price had dropped over the last few days from 22p to 18p, an almost 20% decline. This was my opportunity to buy in the hope it would zip straight back to 22p and beyond. It also fitted in nicely with my strategy to buy a load of gold mining shares. Unfortunately the money was split between my SIPP and share account, so I took the plunge and the £18 hit of double commission to buy 2152 shares in my share account at 18.4p for £404.92 and another 1033 shares in my SIPP at 18.49p for £199.95.
Here's the effect of black Wednesday on my portfolio
| Weekly Change | |||
| Portfolio cost | £34,317.95 | +£27.56 | |
| Portfolio value (share price) | £30,626.63 | (-£3,459.99) | -£173.29 |
| Portfolio sell value (bid price - commission) | £29,461.65 | (-£4,856.30) | -£198.15 |
| Potential profits | £641.94 | -£58.06 | |
| Dividends | £297.51 | +£7.50 | |
| Profit from sales | £661.66 | -£33.35 | |
| Average monthly cash profit | £169.20 | -£12.22 | |
| (Sold stocks profit + Dividends - Fees / Months) | |||
| Avg annual % of current portfolio cost | 5.92% |
The portfolio cost went up by the new purchases, but down a bit from me having wiped PUR:Pure Wafer off the cost following the liquidation and return of cash. Given the catastrophe of Wednesday, to only lose £200 on the sell value is a nice surprise. Still upsetting that I'd be £5,000 down if I sold the lot today, but seeing as I have no intention of doing so, there's nothing to worry about.
Nice to get a £7.50 dividend from UCG:United Carpets. Sales profit went down by £33.35 as I accounted for the PUR:Pure Wafer liquidation as a sale. There's around £75 to come in September, but until then it will show as a loss. The addition of another week and the Pure Wafer loss have dropped my average monthly profit down by £12 and my percentage return to below 6% which is frustrating. I'd like to keep above 6% so need a big dividend or a sale in the next few weeks, but there's nothing I particularly want to sell just now.
There's an exciting new measure. I thought of it after reading last week's review when I said there was £700 potential profit if I sold all the shares that are in the black. A brilliant performance indicator, so it's added as "Potential profits". Not surprisingly it's declined by £58 this week, but is still reasonably healthy.
Here's the effect of the last week on my SIPP
| Weekly Change | |||
| Portfolio cost | £5,854.37 | +£999.77 | |
| Portfolio value (share price) | £5,283.55 | (-£570.82) | -£26.30 |
| Portfolio sell value (bid price - commission) | £5,197.13 | (-£657.20) | -£19.88 |
| Potential profits | £3.22 | +£3.22 | |
| Dividends | £0 | +£0 | |
| Profit from sales | £366.10 | +£0 | |
| Average monthly cash profit | £197.68 | -£28.24 | |
| (Sold stocks profit + Dividends - Fees / Months) | |||
| Avg annual % of current portfolio cost | 40.52% |
Portfolio increased by £200 tax and £800 added to buy LLOY:Lloyds. Amazingly, the portfolio is only down by £20 after all that turmoil. As expected, average monthly profit declined by another big chunk as the weeks thin out my one sale. Potential profits went fro £0 to £3.22 so I'm just grateful one of my pension fund shares is in the black!
So, given the horrors of Wednesday, I am feeling rather upbeat at the end of the week. I hope I've got a few bargains, and have the wonderful anticipation of over £1,000 tax rebate dropping into my account a month from now. Not only that, but I thought I had invested £30K but have just noticed the combined cost is over £40K. Not sure how that happened! Time for a pint!
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