Tuesday 7 February 2017

Out with Nanoco, in with more Amryt

When I reviewed my portfolio a few weeks ago I realised that AMYT:Amryt Pharma was well below 10% of my shareholding. Given that this is one of my absolute favourite shares, I wanted to find a way of resolving this issue and topping up.

Despite some recent good news, the share price was languishing a bit this morning so it seemed like a good time to strike.

Most of my Amryt shares are in my ISA, with 27,306 costing £4,833.39 at an averaged down price of 17.5p. This has been the result of purchases at 23p, 19.8p, 17.01p, 14.7p and 14.8p. The ISA shares are currently losing £203, but every penny the share price increases, they go up £272, so I'm confident they will soon be back in profit.

I also had a tiny number in my main share account that I purchased when they were still FAST:Fastnet Oil & Gas. I bought just 1,148 at 22.645p - although this was before consolidation when the reverse takeover happened, so was actually 9,184 at 2.83p. I had a small amount of spare cash and I was interested in the company, and I'm glad I bought them as it enabled me to follow the story and get increasingly excited by their prospects.

Like my most favourite share OPTI:Optibiotix, my Amryt shares have been at a loss nearly the whole time I've owned them, albeit with a brief period in profit a few months ago. Actually Optibiotix has always been making a loss, but it's still super. The old Fastnet shares have never been in profit.

The problem is I wanted to buy another £1,000 worth, but didn't want to sell any of my other shares. However, when the price slipped to 18p I figured this might be my last chance before things take off, so I reviewed the portfolio to see which share I had most concerns about, but which was currently in profit.

A difficult decision, as my in-profit shares are generally ones I never want to sell, else I would have done it already.

In the end, the share I had most doubts over was NANO:Nanoco. I think there's an excellent chance that TV, monitor and mobile phone manufacturers will licence their technology and they will take off, but there's a teensy element of doubt as the big boys are doing their own thing and there's competing technologies that may get to production sooner. I'll be happy if I'm wrong because they are a great example of a British company with potential worldwide reach.

I sold my 2,164 shares at 41.6p after buying at 36.9688p. This liberated £888.27 and made £72.32 (9.2%) profit in about 6 weeks. There was some cash in my account, and I added another £100 from my current account so was able to buy 5,734 AMRYT:Amryt Pharma shares for 17.27p costing £1,002.21. This was great value considering the offer price at the time was showing as 18p and still is now.

This takes my total AMYT:Amryt Pharma holding to 34,188 shares costing £6,095.61 and comprising 10.3% of my portfolio. Perfect! They are losing £307.55 at the moment, but a 1p price rise will take them to £34.33 profit. In my opinion they will be at 25p a share quite soon, which will put them at £2,427.49 profit and make them my Star Share - how I dream...

Meanwhile it's been an OK week so far. The shares that were having a blip last week have recovered a bit, so although quite a few things are down, I'm about £500 up and the overall combined portfolios are only £736 in deficit. If the week continues like this I may just break even at last!

The share that could most influence things is KIBO:Kibo Mining, which has taken a really surprising dip to £632 loss. I'm confident that it will head north at pace, especially if there's news on the reverse takeover of OPRA:Opera Investments and a date for when Kibo holders qualify for free shares in the new company Katoro Mining.

JLP:Jubilee Platinum are now producing chromite at Hernic and will be moving on to platinum concentrate production over the next few weeks. Once it's clear there is a platinum revenue stream coming on line, I expect these to re-rate significantly. If that coincides with a decision on the ASA platinum processing or approval of the Tjate mining licence, then anything could happen. The bid price is currently 4.15p and my holding of 87,781 shares is making £711.78 profit. If they go to 10p, which I think they can easily do in the short term, the profit will be £5,846.96. I won't be moaning about a deficit in the portfolio then!

Of course I could be completely wrong...

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