Welcome N4 Pharma to the portfolio

As I have a day off today, I've been keeping a close eye on my portfolio and pondering what I wrote in my weekly review.

As I read, and looked at the links kindly provided by Parob on the Advfn bulletin board for N4P:N4 Pharma, my conviction that this is a good long term hold gained momentum.

I decided that rather than wait for CAML:Central Asia Metals to rise a couple of pence to hit my 11.4% of portfolio target, I would sell now and reduce my holding to slightly less than 10% in order to buy N4P:N4 Pharma at this price and add to my SIPP as a long term holding.

I sold 303 CAML:Central Asia Metals shares at 334.08p making £485.19 (92%) profit and liberating £1,003.31

With the addition of proceeds from a recent WRES:W Resources sale this meant I could buy 5,706 N4P:N4 Pharma shares at 21.65p costing £1,244.30.

Although N4P:N4 Pharma have a way to go before becoming profitable, their model of licensing out their products rather than having to fund their own clinical trials makes this a much more attractive proposition than most small-cap pharma companies.

One to tuck away for the long term, although the story promises to be fast-moving and exciting as deals are done with partner companies.

My only concern is that I bought too early. The share price spiked from around 10p in January to over 32p in late February, only to drop to the current 21.6p in a month. There's some evidence that the initial spike was over-done but the potential is there for a drop back to 10p.

I think the news of progress with the Nuvec vaccine delivery system was the catalyst for the rise, and given this promises to be just as profitable, if not more so, than the reformulation products, it seems reasonable to me that the share price should be worth double what it was before - now there are double the opportunities.

Maybe an over-simplistic view, but choosing an entry point for a share isn't an exact science. I may have caught yet another falling knife here, but I may also have found a satisfactory entry point even if there's a risk of some short term loss.

My other plan to top-slice another £1,000 from IQE:IQE has been scuppered by a drop in price. It is creeping back up again though, so all it will take is a few closing shorts and we'll be back above 140p. I don't really want to sell for less than 145p but I'm so convinced there is going to be a gigantic tree-shake first thing in the morning, that I may sell for less with the aim of buying at 100p tomorrow.

Edit - I watched the IQE:IQE price all day and it never really got above 140p. I ended up selling 727 shares at 140.2p making £581.91 (133%) profit. I now have a fighting fund of £3,212 for tomorrow morning. If it's a great set of results I'll enjoy the price rise, but if as I expect it's a set of results hit by tax bills and worsening currency conversion, I'm convinced the hedge funds will short massively and the tree shake could be off the Richter scale. Should that come to pass, I'll be ready to pounce for bargain shares!