Week 269 Review - Banked some 4D Pharma profits and added ITV

The best week in ages. I banked some profits in DDDD:4D Pharma as they are years away from commercial sales. I sold around half my holding so the rest are what I would consider free shares. Despite harvesting over £1,500 of profit, the deficit between cost and value improved by £7,388 and cut the gap to £22,317. Total portfolio value increased to £99,975.

Worst performer was PAY:Paypoint which dropped 14% after news that Ofgem has called them in for breaching competition law. That saw a dramatic sell-off on the day, but there was some recovery on Thursday. I'm confident this is a blip and they will be back in profit soon as they were way under-valued even before the dip.

DDDD:4D Pharma dropped 12% of my purchase price, which is a much smaller percentage of the current price. Given they are now 224% up, I suspect they will feature in this roundup every week, as small changes will be big compared to my purchase price.

CAML:Central Asia Metals are slowly dragging themselves back up after the tailings dam breach. I took advantage of the drop to buy some some more with my DDDD:4D Pharma profits. They climbed 5% this week but will climb much further when the dividend is restored.

JLP:Jubilee Metals recovered a bit from last week's sell-off to climb 5%, but it's still got a way to go before returning to the high of a few weeks ago.

TRMR:Tremor had a good week climbing 6% but they are still 40% down in my trading account.

TLOU:Tlou Energy had a thumping great buy today which caused a 20% rise in share price. That translates to 7% in my main holding and still means they are 73% down, but there was a stonking 22% rise in my trading account so these are only 17% down and giving me hope things could get moving again.

Share of the Week is OPTI:Optibiotix which climbed 7p and 11%. It means my ISA holding is only 10% down now. Strangely, the news that caused the rise was that Seed Health are launching phase II trials of their probiotic blend for treating IBS. That's not such a big deal compared to the SweetBiotix announcement the other week, but this managed to get the share price moving where SweetBiotix failed.

We've been bouncing around a £7k range for some weeks now.

Well above the trend line which is still pointing downwards but only just.

Here's the ISA and share portfolios

			Weekly Change
Cash	£36.98		+£30
Portfolio cost	£62,366.49		+£0
Portfolio sell value (bid price-commission)	£48,948.13	(-21.5%)	+£5,284.11
Potential profits	£1,510.09		+£284.30
Yr 6 Dividends	£0		+£0
Yr 6 Profit from sales	£0		+£0
Yr 6 Average monthly cash profit	-£3.61	(-0.1%)	+£0.45
Total Dividends	£1,343.15		+£0
Total Profit from sales	£20,426.61		+£0
Average monthly cash profit	£346.82	(6.7%)	-£1.29
(Sold stocks profit + Dividends - Fees  / Months)
Performance/Injection	10.0%		+0%
Compound performance	52%		+0%

I added £30 cash to cover monthly charges, JLP:Jubilee Metals improved potential profits by £284 and the general portfolio climbed by a mighty £5,284 largely thanks to OPTI:Optibiotix, but TLOU:Tlou Energy also made a good contribution

A good rise, but still nearer the injection line than the cost line.

I sometimes think I should write off the £3,500 I have in liquidated or utterly doomed companies. It would bring the cost line down but hammer my average performance figures.

TRK:Torotrak is liquidated and will just vanish from my account at some point, MTFB:Motif Bio are failing miserably to reverse into another company and will soon be kicked off AIM, MAIS:Maistro have de-listed and BLCC:Block Commodities are suspended from Aquis exchange.

Three of these were some of my earliest and stupidest purchases, whereas MTFB:Motif Bio was a stark lesson in the dangers of investing in junior pharma.

A good bounce off the trend line which is almost flat now.

The SIPP looks like this after week 253

			Weekly Change
Cash	£131.05		+£66.61
Portfolio cost	£57,183.70		+£1,590.17
Portfolio sell value (bid price - commission)	£49,192.07	(-14.0%)	+£1,946.06
Potential profits	£2,170.76		-£1,732.80
Yr 5 Dividends	£144.10		+£47.73
Yr 5 Interest	£0.03		+£0
Yr 5 Profit from sales	£1,747.67		+£1,535.35
Yr 5 Average monthly cash profit	£168.28	(3.5%)	+£152.09
Total Dividends	£2,043.34		+£47.73
Total Interest	£0.20		+£0
Total Profit from sales	£14,296.77		+£1,535.35
Average monthly cash profit	£269.81	(5.7%)	+£26.15
(Sold stocks profit + Dividends - Fees / Months)
Performance/Injection	8.7%		+0.9%
Compound performance	42%		+4%

There's a lot going on here! I had a £13.88 dividend from PAY:Paypoint and £33.85 from APAX:Apax Global Alpha, and I made £1,535.35 from selling 1,454 of my DDDD:4D Pharma shares at a 209% profit. That leaves me with 1,500 "free" shares to hold long term. Potential profits dropped by more than the sale of DDDD, as the shares I still hold dropped in value and PAY:Paypoint slumped into loss.

It was a little disappointing that the profits only improved my long term performance by a small amount. My new target of 10% of injection amount rather than portfolio cost was improved by 0.9% and is only 1.3% off now, and with me planning to sell JLP:Jubilee Metals soon that should be boosted again.

I used some of the proceeds from the DDDD:4D Pharma sale to buy 1,439 shares in ITV:ITV at 69.4659p costing £1,016.56 with commission and stamp duty. These were in the top 10 of my magic formula ranking last time I calculated it and have recently started to climb slowly. With Spitting Image about to hit the screens I figured now was a good time to buy. I've been watching them as my next potential purchase and their current price and situation was the catalyst for me selling some DDDD.

I was planning to use the rest to increase my OPTI:Optibiotix holding, but just as I tried to buy the share price started motoring upwards and I couldn't get an on-line quote. I knew I was too late for a bargain so looked to my next favourite share CAML:Central Asia Metals which is still reeling from the tailings dam leak and the fact they haven't re-instated the dividend. I bought another 777 shares at 155.792p costing £1,222.45. That takes my holding to 5,777 shares with an average purchase price of 183.32p costing £10,637.94. They are currently down 15% at a paper loss of £1,580, but given I've had £1,475 dividends from them they are only really down by 1%. The previous full annual dividend was 14.5p which would give me £837.66 a year. That would do nicely for my SIPP.

As I try and get closer to the cost line it tries to get away from me!

Still a while before this is flat, but it's looking a lot more healthy than it did in April.

Here's the trading account after week 219

			Weekly Change
Cash	£220.72		+£0
Portfolio cost	£2,354.16		+£0
Portfolio sell value (bid price - commission)	£1,446.70	(-38.5%)	+£157.89
Potential profits	£0		+£0
Year 5 Dividends	£0		+£0
Year 5 Profit	£154.70		+£0
Yr 5 Average monthly cash profit	£60.94	(31.1%)	-£6.09
Dividends	£47.92		+£0
Profit from sales	£441.07		+£0
Average monthly cash profit	£9.68	(4.9%)	-£0.04
(Sold stocks profit + Dividends - Fees  / Months)

One of the best weeks in a long time, with all shares up and TLOU:Tlou Energy getting to the stage where I may be able to sell.

All the recent drops have been wiped out and we're back on the up.

Back above the very upward-pointing trend line.

Here's my wish list

1. SBTX:SkinBioTherapeutics to drop in price to 16p. Unfortunately this was tipped in the week and went back up from 17.5p to 19.5p, but it was a good job as I'd rather wait a little longer for JLP:Jubilee Metals to get back above 6p before I sell. I'll be watching both like a hawk.
2. TLOU:Tlou Energy announce de-watering has resumed. No sign of any progress, but the mysterious big buy on Friday may mean someone knows something is coming.
3. Six SIPP shares to stay in potential profit. Absolute disaster with POLR:Polar Capital Holdings and FXPO:Ferrexpo still underwater, but PAY:Paypoint joining them. CAML:Cemtral Asia Metals is still at a loss and ITV:ITV is down on spread and commission. It mean APAX:Apax Global Alpha is the only magic formula share in profit! I think it's time to abandon this over-ambitious wish.
4. JLP:Jubilee Metals to announce permission to process platinum rich tailings at DCM. No news but surely it's got to come soon? I'll add to this the wish that they complete the move of the fine chrome plant and start production.
5. OPTI:Optibiotix to get within 10% of profit. This one is so nearly true, with the ISA holding only 10% down. However the SIPP is 14% down so it's not quite true yet - but hopefully will be next week..
6. CAML:Central Asia Metals re-instate their dividend. Progress is being made on the clean up and the fine isn't too big. Fortunately it sounds like the pollution levels are low, and some contaminants are no worse below the leak then they are above it. No sign of the dividend though, which is my main wish as it's worth quite a lot now.
   
7. MMX:Minds + Machines announce their maiden dividend. This was disappointment of the week. Instead of a dividend they announced a tender offer. What's that all about? Buying shares off existing holders at a premium to the current price, but most holders are so far under water that they'd end up with a loss. I'm a bit narked, as this seems like a way of extending their share buy-back, and I'm suspicious that they're not doing any of this for the benefit of shareholders, but a means of getting where they can privatise the company. Why not just give long term shareholders a dividend? I'd need the buy-back price to be 8p to come away with £31 profit, compared to the current bid price of 6p. It wouldn't surprise me if they didn't try and walk down the share price so they could buy them cheaper. I'm so miffed with the lack of dividend and mis-trust as to what's going on that I think I'd take the 8p if it was offered and get my next magic formula share target instead.
   

That's it for another week. Feeling better than I have for a while, especially as the portfolio value is tantalisingly close to breaking £100k in value, and although I may regret it long term, it feels great to have banked some profit and to buy another dividend-paying magic formula share.

The fact that 6 of my 13 SIPP shares are magic formula shares means my strategy is playing out. Granted most are at a loss, but in the few months I've held them I've taken £144 in dividends. That's 3.6% of the £4,000 I spent on the 4 dividend-paying shares which is way more interest than I'd get from any savings account. Granted I'm £111 down on current share price, but these are all unpopular shares else they wouldn't be ranked so high on my magic formula list. There's a reason they are all very cheap to buy, but I'm satisfied none of the reasons are long term.

I guess with the potential sale of MMX:Minds + Machines on the cards, I should start following my next magic formula target so I'm ready to strike at short notice. I'd better dust off the spreadsheet...