The 4,200 IQE:IQE shares I bought at 92p last week were really a snub to the shorters. I feel that they are in a holding account in case some opportunity pops up and I feel the need to act quickly. Although I would like to make as much on them as possible, every penny seems like a bonus, especially when it would still have been invested in AMYT:Amryt Pharma which has trickled downwards ever since I sold and went into loss today.
One such opportunity arose last night when I was checking out my old shares and discovered TLOU:Tlou Energy had dropped by 40% after the Botswana government announced they needed to re-tender for the power plant project.
40%!!
From what I can see, the power plant project isn't really that important anyway. The CEO of IQE:IQE has a track record of developing gas companies, building their confirmed reserves, and then selling them on for a vast profit. If he's thinking along those lines then the power plant is actually a risk and an expense in the shorter term.
I've been invested in TLOU:Tlou Energy twice now, and done really well with them. The first holding sold in 2 batches for £328 (63%) and then £380 (69.1%) profit, and the second holding sold for £828 (59.3%) profit so I'm very fond of this share and was reluctant to sell the last lot for 14.2p.
When I saw I could buy back in for 10.5p I leapt at the chance - and had I been out of the shower 20 minutes earlier I could have got in even cheaper, but a big 100,000 purchase jacked up the price early doors. I bought 10,159 shares for £1,078.65 and the offer price rose to 11.5p by the end of the day. I ended up almost breaking even as the spread is an annoying 9% so bid price is exactly what I paid at 10.5p and I'm down the £23.90 commission for buying and future commission when I sell, which I account for in my share value.
There's been a meeting with the Botswana government today for the two parties that tendered, and news is likely tomorrow morning explaining why the re-tender is necessary. If it's good news then these could rocket back to 14p. If it's bad news then I may regret my purchase, but I'm confident this will be a short term issue until news of their seismic survey comes through and may increase their confirmed reserves.
In order to fund the purchase I sold another 1,000 of my recently purchased IQE:IQE shares for 109.05p, which is a few pence more than the ones I sold on Monday, so I guess it would have been about 15% on the 92p by the time I remove commission. On my weighted average purchase price I made £477.34 (77.8%) profit, which is nice.
This lifts my average monthly performance from £311 (8.2%) to £327 (8.5%) over the 131 weeks so I'm creeping back towards the target 10%.
A positive day for my other holdings means that despite cashing in £1,054 profit this week, the portfolio is £1,073 higher value vs cost compared to Friday, but still £5,418 under water.
I really need OPTI:Optibiotix to get back above 60p and we'll be well on the way to getting back in profit.
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