Week 54 Review

A relatively laclustre week, with holidays and nerves over what the Fed will do next week preying on investor's minds. There were however some big movers both up and down.

Biggest loser was last week's Share of the Week IOG:Independent Oil & Gas, falling 67% after announcing there was no oil in it's two secondary target exploration wells. That seems a bit of an over-reaction, given the success of the primary target. The shares are still up by 52% overall, and I suspect will get back the losses next week.

Second biggest loser was PAF:Pan African Resources, dropping 15% as the price of gold wobbles. As with IOG, this one isn't a worry as it's still up 39% and progressing nicely towards massive dividends.

The only other double-digit loser was my ex-nemesis share AFG:Aquatic Food which had an amazing week last week, but dropped 13% this week after a technical glitch meant the dividend will be 12 days late being paid. They didn't say what sort of technical glitch, but it's a shaky start for the new Director of Finance. If I had spare cash I could have taken the opportunity to further reduce my average cost price.

Plenty of good news to offset the bad, although without the crazy rises seen last week.

IKA:Ilika climbed 12% and is almost in profit. The announcement of a joint venture with Johnson Matthey to develop industrial size batteries for renewable energy storage was very exciting. I bought these shares for the potential of their micro batteries to power the Internet of Things, so a breakout into the renewables market would be fantastic.

TRX:Tissue Regenix have woken up after a long slumber and climbed 13% this week on no news. When news does come this could get interesting.

WRES:W Resources was up and down like a yo-yo on good news followed by cynical placing, but did end up 15% better off than last week, albeit still 36% down overall.

EMH:European Metals has been very frustrating this time round, after I catastrophically bought it on a big spike. They climbed 15% this week and are only 6% down now, so fingers crossed for next week.

Share of the Week yet again was SXX:Sirrius Minerals, climbing 21% and now up by 106% since I bought them. So frustrating that I didn't believe in the project enough to increase my holding from a puny £185 investment. However, it would be churlish to complain now the profit stands at £197.

Here are the stats for the main share and ISA portfolios this week

			Weekly Change
Portfolio cost	£40,289.13		-£599.80
Portfolio sell value (bid price - commission)	£36,244.03	(-10%)	-£385.15
Potential profits	£2,117.01		-£209.64
Yr 2 Dividends	£0		+£0
Yr 2 Profit from sales	£2,205.13		+£127.38
Yr 2 Average monthly cash profit	£4,777.78		-£4,225.82
Yr 2 Avg annual % of current portfolio cost	142.3%
Total Dividends	£667.93		+£0
Total Profit from sales	£6,045.39		+£127.38
Average monthly cash profit	£533.88		+£0.34
(Sold stocks profit + Dividends - Fees / Months)
Avg annual % of current portfolio cost	15.9%

Very happy to say I sold some IOG:Independent Oil & Gas before the drop and liberated £700 for my holiday whilst only dropping the portfolio cost by £600. The potential profits dropped more than the £127 profits from the sale, and the rest of the portfolio dropped off with some deepening losses, down 1% of the portfolio cost.

Year 2 projected average has halved unsurprisingly, as it was crazy. The more important actual overall monthly profit went up 34p thanks to the sale, and courtesy of the cost price dropping slightly increases by 0.2% to a spectacularly pleasing 15.9%.

Frustrating that the dip in value is steeper than the dip in cost and the gap between the trend lines is widening. Still much too wide a gap, and still too many shares 25-30% down following Brexit. I have to get the trend lines moving towards each other.

The SIPP looks like this after week 38

			Weekly Change
Portfolio cost	£14,532.66		+£0
Portfolio sell value (bid price - commission)	£15,112.37	(+4%)	+£197.20
Potential profits	£1,107.19		+£38.29
Dividends	£262.15		+£0
Profit from sales	£2,349.86		+£0
Average monthly cash profit	£294.28		-£7.95
(Sold stocks profit + Dividends - Fees / Months)
Avg annual % of current portfolio cost	24.3%

No new shares purchased this week. The potential profits were only up slightly, as some reduced. Most of the gains were made from decreasing losses, with WRES:W Resources up 15% and ARL:Atlantis Resources up 4%. Even ALM:Allied Mind was up 2%.

No dividends or sales means the projected monthly average profit drops a little but is still well over 20%. It is getting to the stage where there is no obvious candidate for a sell in the SIPP, so I may have to rely on just dividends to maintain the cash profit performance. However, if I get no more dividends or sales for the rest of year 1, I will still have made a 17.8% return, and the portfolio is up by 4% on paper too.

I had a transfer valuation quote this week for my work final salary scheme pension. I was somewhat shocked to find it was £314,000. I have some serious thinking to do as I balance the risk of keeping it in a deficit-ridden final salary scheme when I'm not due to retire for another 18 years, or to transfer out into a scheme I can manage myself. I wouldn't get the same returns as I do with the SIPP, as I'd only invest 25% in shares - opting for the safety approach of mixing bonds, funds, gold and cash equivalents to spread the risk. I could still target 10% a year interest though, which would be worth £1,775,000 after 18 years if the interest is compounded quarterly. If you add to that how much fun I'd have doing it, then the idea becomes increasingly attractive.

A nice little widening of the gap makes this graph a lot healthier than the main portfolios.

Here's the dreaded Trading account after week 4

			Weekly Change
Portfolio cost	£499.95		+£0
Cash	£0.05		+£0
Portfolio sell value (bid price - commission)	£404.38	(-19.1%)	+£13.43
Potential profits	£0		+£0
Dividends	£0		+£0
Profit from sales	£0		+£0
Average monthly cash profit	£0		+£0
(Sold stocks profit + Dividends - Fees / Months)
Avg annual % of current portfolio cost	0%

SLP:Sylvania Platinum still steadfastly chooses to ignore the price of platinum and just won't get into profit. Very frustrating as I watch HMI:Harvest Minerals rocket upwards after selling them a few weeks ago. That's the sort of share I need for this account! Come on Sylvania - you can do it!

There's a definite upturn on the curve now - just a very, very shallow one.

That's it for week 54. The AFG:Aquatic Food dividend should finally arrive next week, but my main hope is that my new nemesis share OPTI:Optibiotix will come up with some positive news about something, as it's hurting my performance big-time as the price keeps dropping. It's losing £960 at the moment, but every 1p gain is worth £65, so I need it to increase by 15p to get into profit. Here's hoping...