I couldn't rest last night after the gem of an idea had formed to get one last batch of OPTI:Optibiotix shares. I decided to add them to my pension, but what to sell?
I'd also been looking more and more at the prospects of my second best performing share IQE:IQE, and realised that although these have been going up in value relentlessly, they are still cheap and there's a good chance the results will see a significant increase in profits.
So I looked very carefully at the performance of my existing SIPP portfolio to find shares that I thought would perform worse than either of these two, that wouldn't generate a loss on sale, and that would liberate enough funds to buy more Optiobiotix and IQE.
I chose two.
The first was JLG:John Laing Group. It was a reluctant sale as they trade at a low P/E ratio and the directors are heavily invested. They also pay a dividend unlike both IQE and Optibiotix. I sold my 272 shares for a £92.12 (14.8%) profit and liberated £726.61.
The next to go was ALM:Allied Minds. I bought these for their long term potential and because Neil Woodford is heavily invested in them and he's clever, but they are hard work to own. They are just about the most volatile share in the portfolio, going from good profit to big loss every month or so. They would be a great share to trade on the highs and lows, but I find them too stressful, and the company has never made a profit. It could be I've sacrificed a massive future earner, but I looked at the prospects of IQE and Optibiotix and decided both were a safer bet. I sold my 429 shares for a £19.22 (0.7%) loss, liberating £1,644.81.
So when taken together, I made £72.90 profit out of the two sales which is only 3.2%, but allows me to fulfill my latest plan.
First I wanted £1,000 worth of OPTI:Optibiotix so bought 1,323 shares at 74.63p costing £999.30. This takes my total Optibiotix holding to 10,279, making up 13.9% of my portfolio. 10% maximum holding rule - what 10% maximum holding rule? They are losing £706.72, but each penny they go up is now worth £102.69, so they only need to go up to 80p to break even. If (or indeed when) they go up to 100p, they will be making £2,068.61 potential profit and I sincerely believe that won't take long. When Skinbiotix is split off, even if the share allocation is only one in ten, I'll stand to get over 1,000 free shares. There's just so much potential.
Next I spent the rest of the balance on IQE:IQE, buying 2,885 shares at 47.3099p costing £1,376.84. That takes my total IQE holding to 9,435 making up 5.8% of my portfolio. The new ones are down by £32.84 due to spread and commission, but in combination with my existing holding the potential profits are £1,077.65. I may have to sneak in another 600 shares at some point to take my holding past 10,000.
While doing all these calculations I noticed that there has been a change in my Nemesis Share. AFG:Aquatic Food is losing £879.25, but after my purchases at 8.8p enthused by the prospect of free shares in Katoro Mining, my KIBO:Kibo Mining shares are now down by £991.84. Yikes - how did that happen? They were about £700 in profit when I bought the last batch. No worries - this one will turn around very, very fast at some point soon.
Great news - the yo-yo effect continues and the overall combined portfolios went back into profit today by a massive £21.19. This was mainly thanks to a 10.4% rise in TLOU:Tlou Energy which has well and truly recovered from it's recent slip thanks to great news of increased gas reserves. This is now making potential profit of £718.58 and could threaten both IQE:IQE and CAML:Central Asia Metals for Star Share on a relatively small initial investment.
No doubt tomorrow will see the yo-yo descend once more - unless Kibo wakes up...
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