Wednesday, 6 July 2016

The New Share

The new share has been added to my SIPP this morning. Technically it's not a new share, but increasing my holding of an existing share. The others are in my ISA, so it's a new share for my SIPP.

The share is OPTI:Optibiotix. I bought 1,158 at 80.35p costing £939.40 and taking my total holding to 5898 costing £5,057.25. I had better be right about this share, as it's now 10% of my holding.

Yesterday it issued an RNS that it is splitting into four entities, with the potential to spin any of them off as a PLC. If this happens then existing shareholders will be allocated shares in the new PLC.

With a host of patents and IP rights, a pilot product "Go Figure" on sale on Amazon, a deal with Slimfast about to bear fruit, and a queue of potential news for all four elements of the business, I'm absolutely convinced this could be something very special.

Having said that, I was convinced a year ago that AFPO:African Potash would be something special with it's COMESA agreement and plan to trade fertiliser to make revenues to mine potash in DRC, eventually becoming it's own supplier. That went somewhat wrong when the buyers pulled out of the first trade leaving AFPO with thousands of tons of fertilser stuck in a Zambian port. Shares have dropped 68% and I'm down by £600. There's still hope for this one, but a slim hope.

Nevertheless, I believe in Optibiotix and will now keep everything crossed that it lives up to my expectations.

In another SIPP move I switched my monthly investment from JLG:John Laing Group to LGEN:Legal & General. They have been on my radar for a while due to their high dividend yield, but Brexit has hammered them so now seems like a good time to start buying them for the long term.

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