Worst performer was TRX:Tissue Regenix which dropped 8% thanks to a 400 million share placing at 10p a share to raise £40 million in order to buy out CellRight Technologies. On one hand this is encouraging, as they are trying to position themselves as a world leader in this area. On the other hand it's massive dilution of a company that seems to be burning cash a lot faster than it's earning cash. I felt this was a great company with a niche market it could dominate across the world, but with contracts all over America, I thought a lot more revenue would be flowing in by now.
There's only really one share to talk about this week. After a stunning trading statement the IQE:IQE share price rocketed by 30%, but that was 30% from where it started the day. The effect on my holdings was a lot more impressive given the low purchase prices. My SIPP holding increased 51% and is now 119% up on the purchase price. My ISA holding climbed a whopping 81% and is now 249% up, going from a purchase price of 29.59p to the current 104.5p. Altogether the shares are making a £8,024 profit on an initial investment of £4,607.
I shouldn't have any regrets in this scenario, but I do wonder why I spent so much effort buying more OPTI:Optibiotix when maybe I should have been buying IQE:IQE. Come on OPTI - this is how you're meant to do it! What's quite exciting is that I genuinely believe OPTI:Optibiotix is going to be even more spectacular than IQE:IQE when it breaks. IQE:IQE has to manufacture its own product and is needing to expand into new factories to keep up with demand. OPTI:Optibiotix manufacture nothing - they just pile up the licence money when someone else sells it. Both companies do have a lot in common though, with extensive IP and patent protection, high barriers to entry, little competition, and a growing global market that's only just starting to develop.
Back into the black - kaboom!
Here's the performance of the ISA and share accounts
| Weekly Change | |||
| Portfolio cost | £46,246.68 | +£0 | |
| Portfolio sell value (bid price - commission) | £45,830.60 | (-0.9%) | +£2,615.61 |
| Potential profits | £6,479.60 | +£1,694.40 | |
| Yr 2 Dividends | £500.59 | +£0 | |
| Yr 2 Profit from sales | £2,872.24 | +£0 | |
| Yr 2 Average monthly cash profit | £288.74 | (7.5%) | -£5.89 |
| Total Dividends | £1,168.52 | +£0 | |
| Total Profit from sales | £6.712.50 | +£0 | |
| Average monthly cash profit | £330.50 | (8.6%) | -£3.27 |
| (Sold stocks profit + Dividends - Fees / Months) |
Massive increase in potential profit all down to IQE:IQE and £1,000 reduction in loss mostly down to OPTI:Optibiotix. Nothing more to say.
These accounts so nearly made it into the black - just a £85 deficit which will hopefully get obliterated next week
The SIPP looks like this after week 86
| Weekly Change | |||
| Portfolio cost | £17,853.50 | +£0 | |
| Portfolio sell value (bid price - commission) | £20,671.56 | (15.8%) | +£1,605.56 |
| Potential profits | £4,596.202 | +£1,416.19 | |
| Yr 2 Dividends | £294.96 | +£0 | |
| Yr 2 Profit from sales | £1,596.81 | +£0 | |
| Yr 2 Average monthly cash profit | £233.71 | (15.7%) | -£7.08 |
| Total Dividends | £708.15 | +£0 | |
| Total Profit from sales | £3,946.67 | +£0 | |
| Average monthly cash profit | £229.07 | (15.4%) | -£2.69 |
| (Sold stocks profit + Dividends - Fees / Months) |
Pretty much exactly the same story as with the other account, the two biggest shares doing rather nicely.
All back to normal again after a wee scare over the last few weeks.
It's the first year anniversary of the trading account after week 52 - what stunning successes can I report?
| Weekly Change | |||
| Portfolio cost | £486.05 | +£0 | |
| Cash | £79.63 | +£0 | |
| Portfolio sell value (bid price - commission) | £321.65 | (-34%) | -£13.90 |
| Potential profits | £0 | +£0 | |
| Dividends | £1.15 | +£1.15 | |
| Profit from sales | -£22.85 | +£0 | |
| Average monthly cash profit | -£1.81 | (-4.5%) | +£0.03 |
| (Sold stocks profit + Dividends - Fees / Months) |
None!
What a complete and utter disaster. The initial sale of SLP:Sylvania Platinum was a success, making £61.57 (12%) profit. However, I then added some KIBO:Kibo Mining shares which I later stole back into my share account because I wanted to keep them for free KAT:Katoro Gold shares, and then bought JLP:Jubilee Platinum that I accidentally transferred to my ISA along with my other JLP shares in the account. I couldn't report that as stealing them as they were sold and bought back, so had to report a sell at an £84.42 (17%) loss even though I still have the shares in another account.
Meanwhile REDS:RedstoneConnect have been an unmitigated disaster as a trading share because I fell for a load of bulletin board ramping and bought them on a spike. That was a useful but frustrating lesson, as I'm either stuck with them until they recover or would make an even bigger loss if I sell them. I know a trader would take his loss and re-invest somewhere else, but I'm clearly a rubbish trader because I can't and won't.
So the upshot of all this is I made an average monthly loss of £1.81 and am losing £162 (34%) on the purchased shares. Well done me!
I should just give up - but I won't as I need this account to try and save me from myself - there has to be a fun outlet so I can focus on long term investing with the main accounts. Maybe I do need to stick another £1,000 in this one to pep it up a bit, but I don't have it so can't.
That's it for a wonderful week. I don't think IQE:IQE will collapse under profit taking next week, as that would have happened today. Even the reported 6.9% drop today was bollox as the bid price only dropped from about 106p to 104p and that's the one that counts.
Next week could easily see a few more OPTI:Optibiotix contracts come in, as they had the first one last week and have been in discussion with 30 companies. We're expecting the small ones first and the bigger ones later once all the due diligence has been completed.
Meanwhile in comedy land, AFPO:African Potash have farmed out their one remaining asset to African Agronomix Ltd in return for shares in the company. On one hand it's good news, because there was never going to be enough money to develop it. On the other hand I'm concerned the board may find some cunning way of getting their hands on the cash and leave nothing behind for shareholders. I will try not to be too cynical and foster a tiny glimmer of hope that this deal will allow debts to be repaid and a fresh start, but going by past performance, I suspect I'll never see my £700 investment again.
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