Biggest faller was a gamble that didn't pay off. I thought the 40% drop for TLOU:Tlou Energy was way over-done so bought 10,159 shares for 10.5p. It was all looking good as the price climbed through the day and the bid price reached the 10.5p I had paid. I was anticipating a move upwards following the meeting with the Botswana government on Thursday, but the RNS on Friday was not well received and the bid price fell to 8.3p. I ended up with a 23% loss in a few days. I still think when the results of the seismic survey are announced in the next few weeks the price will recover. Tony Gilby has a track record of developing a company's gas reserves and then selling on . The power plant development would be great, but is a bonus as there are still plenty of markets for the gas, and once the reserves are confirmed the company could easily be sold on.
MTFB:Motif Bio fell 9% but that was partly due to my purchase of 3,827 shares on Monday at 34.4p. Although the offer price is now 36p, the 5% spread means bid price is 34.1p which is less than I paid. Add to that the increase in my weighted average from 28.96p to 31.84p and that explains the drop in performance. I'm really happy that I've doubled my investment while the price is this low, and I'm hoping to see 45p again soon.
I had some stellar performances this week, with most shares rising and helping cancel out 75% of last week's losses. OPTI:Optibiotix only climbed 1p, but that meant a £569 rise for the portfolio. Not only that, I had an irresistible urge on Friday to get a few more after reading details of the meetings just held in America by the OPTI:Optibiotix team. They couldn't say very much, but the sentiment was extremely positive. Corporations don't send Senior Vice Presidents into meetings without some serious interest. I couldn't sit by and watch other people buying in at below 60p when my weighted average was 67p.
I decided to bank some more of my IQE:IQE 92p purchase profit so sold another 1,000 shares at 115.7p making £546.84 (89.6%) profit on my weighted average cost price of 58.9p, or around 25% profit on my 92p purchase price 2 weeks ago. Dirty tricks by shorters are bearable when I can make a load of money out of them!
I've now sold 75% of the shares I bought at 92p. I'll try my best to hold the rest a little longer, but would really like to buy back some of my AMYT:Amryt Pharma shares which have dropped to an offer price of 19.25p when I sold to buy IQE:IQE at 19.5p. Given I can already get them back cheaper than the recent sale price, I'd like to set a limit order for maybe 18.5p to see if I can get back in. The problem with AMYT:Amryt Pharma is typical of AIM shares - the price is news led and will rocket when the next RNS is issued. I'm seeing this with more and more AIM shares now. Price rockets on news then drifts for months, then rockets on next news. Hold and wait is still a great technique, but the secret is buying at the right time, and I haven't been very good at that. I buy after the news instead of watching and waiting for a good entry point. I'm doing that now with VRS:Versarian, which I think is going to be huge but is in the phase of sinking till next news. I suspect TRX:Tissue Regenix and RED:RedT Energy are both in the same boat, but I have enough doubts on their ability to be profitable to stop me topping up.
Anyway - the IQE:IQE sale liberated £1,145 so I was able to buy another 1,962 OPTI:Optibiotix shares at 57.75p costing £1,145.01. This takes my holding to 59,003 shares costing £39,058.50 at a weighted average of 66p. My holding is losing £5,719 at the moment, which is dreadful. However a 1p rise is now worth £590 so first I need a 10p rise to get into profit and then it's bonanza time all the way to £5 a share! Hah! I should dream - that would be worth £250,000 profit! Not impossible though...
WRES:W Resources soared by 19% this week, but I sold my SIPP holding at 0.6615p before it dipped back to 0.61p, making £41.76 (26.5%) profit on a tiny investment of £202. I've been dying to get rid of these for ages. The rise was due to announcement of debt financing. However at 12.5% interest and including warrants for 5% of the company's shares causing dilution of another 257,000,000 shares, I want out. Unfortunately my ISA shares were bought on a spike at 0.698p so they are still 18% down. I'm stuck with them unless they can get up to 0.8p when I can get out with a small profit. I suspect that will be a long way off. I left the £244 proceeds from the SIPP sale as cash as it's too small to do anything with. When (if) I can sell the ISA holding I'll move the proceeds into the SIPP as there will be enough to invest in something with the two combined.
IQE:IQE had a great week, rising 13% in my SIPP which is still 12% in the red, but climbing 29% on my weighted average cost price in the ISA. With the three sales I've cashed in £1,600 profit and still have another 1,000 sacrificial shares waiting to sell. That brings me back to my core holding, and I then have to decide how much they will rise in anticipation of strong results and whether to sell some more to get my holding down to 10% of the portfolio value. It's currently 16.7% of the portfolio value so there's plenty of room to take some more profits.
Share of the Week is CAML:Central Asia Metals, which predictably bounced back after a torrid few weeks and climbed 21% of my purchase price this week. I'm now 84% up and making paper profits of £3,438, and a recent video with the CEO pretty much confirmed they will be able to hold the dividend rate which is currently worth almost £400 a year. The value has snuck up to 11% of the portfolio value, and if it gets to 11.5% then I need to slice off another £1,000 but I'll be keeping a close eye on ex dividend date as I want to maximise that.
Stage 1 of the recovery...
The ISA and share accounts look like this
| Weekly Change | |||
| Cash | £10.01 | -£7.12 | |
| Portfolio cost | £46,498.17 | +£1,607.72 | |
| Portfolio sell value (bid price - commission) | £41.674.52 | (-10.4%) | +£212.87 |
| Potential profits | £4,730.88 | -£4.55 | |
| Yr 3 Dividends | £44.15 | +£0 | |
| Yr 3 Profit from sales | £2,631.42 | +£1,600.94 | |
| Yr 3 Average monthly cash profit | £410.59 | (10.6%) | +£241.73 |
| Total Dividends | £1,223.20 | +£0 | |
| Total Profit from sales | £9,343.92 | +£1,600.94 | |
| Average monthly cash profit | £342.70 | (8.8%) | +£50.34 |
| (Sold stocks profit + Dividends - Fees / Months) |
I banked £1,600 profit from IQE:IQE and ploughed it all back in, so the portfolio cost rose by £1,607 as there was £7 cash I was able to include. The sell value only increased by £212 because I take off amount re-invested. In reality the sell value went up over £1,800 but that's because the cost went up too. It's amazing that potential profits only dropped by £4 given the amount I cashed in. That was all thanks to the 29% increase in IQE:IQE which saw the profit rise by the same amount I took out. Splendid! The sales also gave a massive boost to my performance stats, taking the average over 132 weeks up by £50 a month to £342 (8.8%).
The graph illustrates that the portfolio value went up about the same as the cost so the gap hasn't really narrowed, but the sale didn't cause it to widen.
The SIPP looks like this after week 116
| Weekly Change | |||
| Cash | £273.09 | +£244.28 | |
| Portfolio cost | £26,290.07 | -£202.52 | |
| Portfolio sell value (bid price - commission) | £26,385.74 | (0.4%) | +£1,271.93 |
| Potential profits | £3,868.89 | +£921.34 | |
| Yr 3 Dividends | £0 | +£0 | |
| Yr 3 Profit from sales | £538.65 | +£41.76 | |
| Yr 3 Average monthly cash profit | £183.02 | (8.4%) | -£0.19 |
| Total Dividends | £916.10 | +£0 | |
| Total Profit from sales | £9,463.84 | +£41.76 | |
| Average monthly cash profit | £381.05 | (17.4%) | -£1.74 |
| (Sold stocks profit + Dividends - Fees / Months) |
Cash went up by the £244 liberated after getting rid of WRES:W Resources and the tiny profit was enough to limit this week's performance drop to practically nothing. Paper profits absolutely soared thanks to IQE:IQE and CAML:Central Asia Metals, but everything except TRX:Tissue Regenix was up this week.
We're back in the black! Only just though, with a £95 buffer plus the £273 cash.
The trading account looks like this after week 82
| Weekly Change | |||
| Cash | £0.03 | +£0 | |
| Portfolio cost | £345.65 | +£0 | |
| Portfolio sell value (bid price - commission) | £265.21 | (-23.3%) | -£3.70 |
| Potential profits | £0 | +£0 | |
| Year 2 Dividends | £0 | +£0 | |
| Year 2 Profit | -£218.50 | +£0 | |
| Yr 2 Average monthly cash profit | -£31.56 | (-109.6%) | +£1.09 |
| Dividends | £1.15 | +£0 | |
| Profit from sales | -£241.35 | +£0 | |
| Average monthly cash profit | -£12.69 | (-44.1%) | +£0.16 |
| (Sold stocks profit + Dividends - Fees / Months) |
Pretty flat, but my optimism in LION:Lionsgold is increasing. They may actually be onto something, as they have tie-ins with both Railsbank and Mastercard who seem to be doing the business!
Can't believe how crap I am at this! Glad it's just a play account...
OPTI:Optibiotix were in America all week. I'm really excited about what might have been going on there. I've been fantasizing this morning - pondering who might have the biggest interest in developing a calorie-free sweetener? Maybe someone who's chair and CEO of a company that owns a massive share of one of the biggest fizzy pop manufacturers in the world? Someone who's the most famous investor in the world and has the power to keep a share price depressed while they build a big stake? That would be the RNS to end all RNS's! I find it easier to hold out for the real news if I have the odd fantasy to cling to...
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