No horror stories this week, with the worst performer MTFB:Motif Bio dropping 6% and going 7% down overall. I'm really surprised, as the NDA has been submitted for Iclaprim following successful Phase III trials, and yet the price is lower than it was before the Phase III success was announced. That doesn't make any sense to me whatsoever. With a £3,300 investment this is one of my bigger holdings. I suspect it will be bought out long before any commercialisation, but would rather the share price was already at a premium before that happens.
My other significant loser this week was KIBO:Kibo Mining which fell 5% and is now 43% down on my average purchase price. The delay in signing a PPA is quite intolerable given the assurances about how close the deal was. Add to that the sell-off of KAT:Katoro Mining over a year ago and no sign of in-specie dividend and I'm pretty down on this company now. I won't be selling at a loss, but I'll be getting out as soon as is practical.
There were three 5% risers this week.
TND:Tandem Group tends to move quite a lot when it does move. There are so few shares in circulation that one buy or sell can shift it by 2 or 3%, and it generally goes up and down 5p at a time. My holding is still 35% down and it's constantly frustrating that this company can trade on a P/E ratio of 3.8. There's just no appetite for the shares. I'm still holding because it would only take one significant announcement to put this on the radar and a re-rate would be significant and fast. With hindsight it was a mistake to buy into such a small company with such illiquid shares, but I'm here now for better or for worse.
AMYT:Amryt Pharma is gradually dragging itself towards profitability and climbed 5% this week. It's only down by 3% now, so may go green again soon. I sold the majority of my holding last year for a modest £149 (3%) profit when I needed lots of cash to buy IQE:IQE during the shorter wars. That decision made me over £1,500 in about a week, and much of the proceeds from that sale went into increasing my OPTI:Optibiotix holding, so selling these was a great move. I kept £1,540 worth as I think this could be big, but I was overweight with my original holding given the risk.
OPTI:Optibiotix was Share of the Week last week, and the rise continued this week. It was only 3p (5%) but that constituted most the of portfolio rise this week. All this despite no news, so looking forward to the next announcement. Having said that, in the bad old days an announcement was always sold into so maybe we're better off without!
RED:RedT Energy announced a massive deal this week to provide 700MWh of storage for the German grid. This is exactly the type of deal required, and the share price reacted accordingly. There was a 24% improvement which means my holding is now just 32% under water. I only have £1,063 invested as I do have concerns that the margins on each machine are too small, but it would take over 9,000 machines to complete the 700MWh capacity. This is just for Germany - what happens when other countries come on board?
Share of the Week was almost the winner last week when it went up 18%. This week SBTX:SkinBioTherapeutics went up 39% and is now 48% up on my original investment and making £507 potential profit. I would have sold at this level a few weeks ago - given I had a limit order for 18.7p for a while, and it's now 21p. However, news from OPTI:Optibiotix on plans for the share divi are making me re-think my plans.
I've been counting on free shares in SBTX:SkinBioTherapeutics ever since the spin-off, and so haven't been buying any more than my original small stake. It's looking like the share handout may not happen. I can see the reasoning behind it. Dish out millions of free shares and you can guarantee many people would sell them immediately for the cash. I wouldn't, but many would. Alternatively, if the OPTI:Optibiotix holding could be placed with an institutional investor, then the cash could be dished out as a dividend and the shares would be safe as the institution would be under a lock-in clause.
The likely impact is lots of people receiving the dividend would use it to buy SBTX:SkinBioTherapeutics shares and there would actually be a benefit to the share price. I suspect I would buy the shares because I don't want my stake in the OPTI:Optibiotix spin-offs to be diluted. I would have to fight with everyone else for them and would get fewer than I might have under an in-specie divi, but the share price for my existing holding would be protected. My only regret is that I didn't load up at 10p! I won't make the same mistake when the other divisions are spun off.
I suspect it won't keep going up much longer, but it will make a very attractive spike.
The ISA and share portfolio looks like this
| Weekly Change | |||
| Cash | £111.02 | +£0 | |
| Portfolio cost | £56,047.10 | +£0 | |
| Portfolio sell value (bid price - commission) | £63,463.30 | (13.2%) | +£1,972.98 |
| Potential profits | £14,928.30 | +£1,929.61 | |
| Yr 3 Dividends | £59.28 | +£0 | |
| Yr 3 Profit from sales | £11,984.62 | +£0 | |
| Yr 3 Average monthly cash profit | £1,019.83 | (21.8%) | -£20.40 |
| Total Dividends | £1,238.33 | +£0 | |
| Total Profit from sales | £18,697.12 | +£0 | |
| Average monthly cash profit | £553.24 | (11.8%) | -£3.59 |
| (Sold stocks profit + Dividends - Fees / Months) |
Nearly all the rise was increased profits. Next week sees the end of Year 3 so it's looking like a 20% realised profit is guaranteed for the year unless something goes bust next week. Long term profit is well over the 10% target and that's 10% of a much more valuable portfolio.
Nice.
The SIPP looks like this after week 139
| Weekly Change | |||
| Cash | £20.03 | +£0 | |
| Portfolio cost | £27,893.76 | +£0 | |
| Portfolio sell value (bid price - commission) | £33,443.54 | (19.9%) | +£706.89 |
| Potential profits | £8,369.41 | +£825.78 | |
| Yr 3 Dividends | £292.57 | +£0 | |
| Yr 3 Profit from sales | £1,619.73 | +£0 | |
| Yr 3 Average monthly cash profit | £226.41 | (9.7%) | -£6.66 |
| Total Dividends | £1,208.67 | +£0 | |
| Total Profit from sales | £10,544.92 | +£0 | |
| Average monthly cash profit | £359.21 | (15.5%) | -£2.60 |
| (Sold stocks profit + Dividends - Fees / Months) |
Nice increase in profit from OPTI:Optibiotix and CAML:Central Asia Metals finally had a green week. Small losses elsewhere lopped off £120 but a £706 rise is still healthy.
Not as extreme as the other chart, but most of the time has been in the black.
I've been allocated my full 500 shares in the IKA:Ilika open offer, and those will be added to my account next week. The purchase will increase my holding by 30% and bring my average price a long way down from 55p given they were bought at 20p. It was a speculative punt as I don't have a huge amount of faith in the board. They are a typical research focused company with not much clue on commercialisation. My main hope is they will be bought out for their IP, which could be very valuable for electric cars. Even with this extra purchase for £100, my total investment has only cost £665 so I'm happy to be along for the ride.
Not sure what else is due to happen next week. My main hope is OPTI:Optibiotix and SBTX:SkinBioTherapeutics can consolidate for a while at their current price before the next leg up.
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