Tuesday 16 August 2016

Sometimes I'm So Wrong

In my review at the weekend I wrote "Everything left in my SIPP is now a long term holding, except WRES:W Resources which I'll dump as soon as there's a modicum of profit as I never should have bought it for my  pension in the first place."

Today they announced a financing deal and will be going into production imminently

The share price rose 22.6%

It means the shares in my SIPP are now only down by the commission and a rise of 0.05p will see them go into profit.

These were a spur of the moment purchase when I had £200 of dividends lying around in my SIPP and didn't know what to do with them. Now I would hold them until there is at least £500, but on that day I bought 38,735 shares in  WRES:W Resources at 0.492p each. Seemed an absolute bargain at the time, but the commission on such a tiny amount is gigantic, and requires an equally gigantic rise in price to get into profit.

I didn't do much better in my standard account. At least there I bought 60,000 shares for £430 so it's nearly £500. The problem is I bought on a spike (again!!) at 0.698p and watched it go relentlessly downhill from there. Even after today's 22% rise, this share is down another 32% so there's a hell of a way to go before getting into profit.

The punters are all suggesting 3p for this one, as the company has no debt and should be able to produce quickly and at low cost. We'll see about that, but in the meantime ignore everything I said about selling them from my pension. They are lovely and I'm going to keep them!

Meanwhile I've had 2 shitty days in a row for the portfolio. Today's main debacle was AFG:Aquatic Food trying to become my nemesis share again by announcing the dividend payment would be 12 days late due to a technical fault. At the time I shrugged my shoulders and didn't think much of it. Minutes later the share price had tanked by 11.4%. I howled as several hundred pounds vanished from the portfolio value. People must be selling in droves!

Nope

There was one sale all day of 1,897 shares.

How can that be enough to cause an 11.4% drop in price?

I would almost suspect a devious plan was afoot to trigger a few stop losses and get some more shares available in the market, but it seems to have backfired. We shall be watching very closely tomorrow and hoping for a reversal of the madness.

I'm still in love with AMYT:Amryt Pharma. It climbed another 0.5p today which is £136. I'll be more than happy if it just creeps up slowly at that rate and helps mitigate against the kind of madness described above.

Today also showed positive movement in both my battery companies, with IKA:Ilika climbing 5.9% on news that it has a load of grant money to work with Johnson Matthey to produce large scale renewable energy storage solutions. Very exciting as it's exactly what RED:RedT are also producing with their vanadium redox flow batteries. These climbed 6.5% today.

There seems to be increased optimism in the world of renewable energy at the moment after announcement that the government are going to make loads of cash available for electricity storage, and that electricity bill payers had to fork out £3.1 million the other day to get Scottish wind farms to turn off the turbines because they were making too much electricity for the grid to cope with. That's just bonkers, and surely a sign that soon there will be whacking great batteries all over the national grid.

Let's see what tomorrow brings...

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