I immediately re-invested much of the sale proceeds, buying a company I've become very interested in called RED:RedT. They make batteries, but not tiny batteries like my recent purchase IKA:Ilika, but massive container-truck size vanadium redox flow batteries. These are designed for use by wind farms and solar farms to store excess energy and then feed it into the grid when the wind eases or the sun goes in. It's exactly the sort of thing that's needed to make renewable energy work.
They are still loss-making, but have started to pilot their batteries in South Africa and Scotland. I bought 12,000 shares at 8.4p costing £1,016.95. They went up in value 7.6% today, but as the spread is 8% they are still making a slight loss.
I also added another 347 shares to one of my favourites, CAML:Central Asian Metals. This is such a great company, producing copper that was profitable even during the price slump, which has returned more in dividends to shareholders than it got for its original listing, and returning over 7% dividend. They have no debt, and a huge pile of cash waiting to invest in a suitable project, should another low-cost production option become available. If I had to choose one company out of my portfolio, this is the one I'd say is best run and gives me greatest confidence in long term value.
The 347 shares were bought at 170.188p costing £599.50, taking my total holding to 2,134 shares costing an average of 158.94p per share totaling £3,430.67 and currently making £147 profit, as well as a recent £142 dividend.
This leaves me £1,100 cash in the SIPP to invest in something else, but I can't decide what. I may wait a while and see what happens to gold. If the price drops, then I may buy HGM:Highland Gold again. I've also had my eye on SRX:Sierra Rutile, which has shot from 22p to 34p recently and appears to have great potential - I just wish I'd had the funds to buy when I first looked at it, as there may be a dip in price now - I've bought at the top of a spike before and didn't like it. Alternatively I may get more GVC:GVC Holding, which is destined to join the FTSE 250 before long, and I believe has a lot further to climb when the tracker funds have to pick it up. Or should I pile more into OPTI:Optibiotix, with the possibility of getting shares in 4 companies if they split and while the price has slumped, but risking having 14% of my savings in one share that's never made a profit. So many options...
I've also been buying in my normal share account. It was meant to be a quick win, take the profit, and return it to my current account. I should have learned not to try that. It's not proper investing and I'm stupid to have tried it. I bought 2,135 shares in EMH:European Metals at 23p costing £500. I was convinced these were about to fly, and they were good to me in the past, making £168 (28.1%) profit in a few weeks when I bought at 9.75p and sold at 13.02. I clearly should have kept hold of them, as I would have made £557 profit at today's price. Unfortunately, with a 6% spread and a drop in price, my "investment" is losing £90 after 3 days.
The biggest loser of the week was in fact my foolish EMH:European Metals purchase, losing 18% in a few days. The other double digit loser this week was TLOU:Tlou Energy, dropping 14% as people took profits following last week's big rise.
Not all doom and gloom though, with some nice big rises. HMI:Harvest Minerals went up 10% and has almost recovered the early losses, PAF:Pan African Resources climbed 11% and is now £468 in profit, and my nemesis share AFG:Aquatic Food almost made it to Share of the Week for a second week on the run, rising another 17% and reducing the loss to £680. Will this one finally come good? If general investors have now decided the company is for real, it could take off spectacularly and I'd need to find a new nemesis.
Share of the Week goes to IOG:Independent Oil & Gas, my new North Sea Oil company which has climbed by 32% this week and is £160 in profit on a £545 investment. Drill results are imminent, so things could get exciting soon.
I'm also due a new "Woohoo!" as the total cost of the portfolio has gone over another £1,000 to £52,372.61, and that's not including the £1,100 waiting to be invested. However, although great to see the amount invested going up at a steady rate, I figure it's not the best measure for generating a "Woohoo!". Instead, I'm going to focus on the total portfolio value. That's sitting at £47,910.03, so my new target is to get it above £50,000. It also means I only need £100 to generate a new "Woohoo!"
Here's the portfolio performance
| Weekly Change | |||
| Portfolio cost | £39,093.43 | +£500.00 | |
| Portfolio sell value (bid price - commission) | £34,344.14 | (-12.1%) | +£237.59 |
| Potential profits | £2,428.02 | +£225.62 | |
| Dividends | £667.93 | +£0 | |
| Profit from sales | £3,794.59 | +£0 | |
| Average monthly cash profit | £381.85 | -£7.79 | |
| (Sold stocks profit + Dividends - Fees / Months) | |||
| Avg annual % of current portfolio cost | 11.7% |
Portfolio cost up £500 from my naughty attempt to make some quick cash, sell value up a few hundred quid so slowly going in the right direction, potential profits also up a few hundred quid but the paper loss is still slightly bigger than the profit, with just 2 weeks before I do my first annual report.
The graph shows the value line is steeper than the cost line, but the gap is still alarmingly wide.
The SIPP looks like this at Week 34
| Weekly Change | |||
| Portfolio cost | £13,279.18 | +£537.50 | |
| Portfolio sell value (bid price - commission) | £13,565.89 | (+2.2%) | -£1,707.58 |
| Potential profits | £923.60 | -£1,744.29 | |
| Dividends | £262.15 | +£0 | |
| Profit from sales | £2,345.25 | +£1,578.70 | |
| Average monthly cash profit | £329.04 | +£197.33 | |
| (Sold stocks profit + Dividends - Fees / Months) | |||
| Avg annual % of current portfolio cost | 29.7% |
This is very hard to decipher! I sold HGM:Highland Gold but only re-invested just over half the proceeds, with £1,100 cash still sitting in the account. The cost of the portfolio went up by just £500 as a result. The profit from the sale was £1,578, so the decrease in both value and potential profit of around £1,700 means the rest of the portfolio dropped by about £200 this week. However, the performance from sales and dividends has rocketed, up by £197 to a projected monthly profit of £329 which would be 29.7%. There are still 18 weeks before the first year is up, so I doubt I can maintain this performance, but if I sell nothing else and get no more dividends, I'm still guaranteed an average of £215 a month, which is 19.4% of the current portfolio value. That will do nicely!
The downside of the sale is my big gap between cost and value has been decimated - but at least we're still in the black.
So, I have £1,100 to play with. I'll have some fun over the weekend researching options. I'm tempted to hold the cash for a while, and I'm also tempted to top up an existing favourite, but something new and shiny might pop up if I search hard enough...
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