A pretty poor week for most of the portfolio, with some big drops for magic formula shares and the SIPP absolutely hammered. However, thanks to a revival in JLP:Jubilee Metals, the deficit between cost and value only worsened by £246, and that's despite me realising £1,900 in profits, so it really feels like I'm £1,650 up. The deficit between cost and value is now £137,678 and the deficit between injection and value is down to £59,792. Total portfolio value increased to £116,190.
FDM:FDM Group has been an utter disaster of a magic formula investment. It dropped 7% this week after a rally last week and is now 61% down. At some point I will probably buy more to average down, but not until the share price starts going up for some length of time.
IPX:Impax Asset Management looked like it might be creeping back up, but dropped 7% this week to go 59% down and join FDM as a disastrous investment. As with FDM, I will buy more but not until there is upward momentum, as their fundamentals remain strong.
PAGE:Pagegroup is in the same bracket as the two shares above, and also dropped 7% this week to go 53% down. They are still profitable and will turn around once people start recruiting staff again, at which point I will buy more.
PSN:Persimmon dropped 5% in a week most housebuilders got battered. These are now 27% down after being in profit not that long ago.
There was good news for ARBB:Arbuthnot Banking which went up 6% and is now only 2% down. Things are looking promising for these getting into profit, and they have returned to my top 50 ranking after briefly dropping out, so I will keep them.
Share of the Week was JLP:Jubilee Metals which went up 14% after the vote to sell the South African operation was passed. Hopefully that can generate revenue quickly and start a recovery in the share price, especially if we spend some of the cash on more copper assets in Zambia.
Here's the ISA and shares portfolio after week 5 of year 11.
| Weekly Change | |||
| Cash | £81.08 | +£0 |
|
| Portfolio cost | £115,878.07 | +£0 | |
|
Portfolio sell value (bid price-commission) |
£40,463.06 | (-65.1%) | +£1,536.07 |
| Potential profits | £89.00 | -£14.85 | |
| Yr 11 Dividends | £0 | +£0 | |
| Yr 11 Interest | £0 | +£0 | |
| Yr 11 Profit from sales | £0 | +£0 | |
| Yr 11 proj avg monthly profit | -£6.91 | (-0.1%) | +£1.72 |
| Total Dividends | £12,488.07 | +£0 | |
| Total Interest | £8.57 | +£0 | |
| Total Profit from sales | £17,560.27 | +£0 | |
| Average monthly cash profit | £243.35 | (3.4%) | -£0.46 |
|
(Sold stocks profit + Dividends - Fees / Months) |
I big rise of £1,536 mainly thanks to JLP:Jubilee Metals as I have 410k shares in this account. My holdings are still over 50% down, but I'm reasonably optimistic they will creep up over the next 18 months or so. I'll be holding the ones in this account for the long term, in the hope of massive dividends.
Potential profits dropped £14 as BOKU:Boku fell 1%, and Year 11 performance will remain negative until I can sell something or get a dividend, as the monthly fees are pulling it down.
Sneaking up.
Back on the trend line, but no sign of holding above it.
One day I'll sell something.
This is going to be complicated!
First of all I had some dividend cash and in the hope of a JLP:Jubilee Metals revival following the vote on disposing of the South African operation, I bought 5,000 shares at 3p costing £155. They are now worth £165 so it may have actually worked.
Sneaking up.
Back on the trend line, but no sign of holding above it.
One day I'll sell something.
The SIPP looks like this after week 509 overall and week 41 of year 10.
| Weekly Change | ||||
| Cash | £1,727.87 | +£1,515.25 | ||
| Portfolio cost | £136,181.59 | +£413.15 | ||
| Portfolio sell value (bid price - commission) | £73,918.31 | (-45.7%) | -£1,782.79 | |
| Potential profits | £5,490.23 | -£1,809.53 | ||
| Yr 10 Dividends | £1,532.07 | +£25.85 | ||
| Yr 10 Interest | £3.96 | +£0 | ||
| Yr 10 Profit from sales | £6,163.96 | +£1,902.55 | ||
| Yr 10 proj avg monthly profit | £794.77 | (10.7%) | +£189.04 | |
| Total Dividends | £17,648.72 | +£25.85 | ||
| Total Interest | £16.86 | +£0 | ||
| Total Profit from sales | £23,171.90 | +£1,902.55 | ||
| Average monthly cash profit | £334.37 | (4.5%) | +£15.79 |
This is going to be complicated!
First of all I had some dividend cash and in the hope of a JLP:Jubilee Metals revival following the vote on disposing of the South African operation, I bought 5,000 shares at 3p costing £155. They are now worth £165 so it may have actually worked.
I'd been concerned about a couple of shares falling outside the top 50 of my refreshed magic formula rankings, but decided it was down to them having 0% ROI. I realised however, that if I remove ROI from the rankings, they still fell outside the top 50, and the reason I wasn't selling them was because I like them. That's going against the whole point of the magic formula system, as there are better value companies above them in the rankings.
The first one I sold was IGG:IG Group which had fallen to 139 in the rankings. I sold them for 1153.04p and made £617.01 (40.3%) profit. I'd also had £279 dividends, so my return was actually 59%. That liberated £2,132.
I completely forgot about my plan from last week to keep the cash and set up regular investments, which is very vexing, so I initially bought another 21 shares in RIO:Rio Tinto at 4614.9113p costing £985.93. That takes my holding up to 61 shares at an average of 4925.119p costing £3,055.19. They are currently down by just 8% after averaging down and the price rising after I bought them. They are only down 3% if you include the dividends. I like their exposure to copper, which I think is going to rocket soon.
The next purchase was a new share INVP:Investec. They are ranked 31st in my magic formula ranking, which only just qualifies them for purchase, but they have a strong 6% dividend, high growth over the last 5 years of 32%, no debt and an upward momentum since April this year. I bought 206 shares at 547.5p costing £1,145.44. The price dropped 1% after I bought them, so they are 4% down mostly on spread and commission. They are ex-dividend so unfortunately I'll have a bit of a wait until the next one.
I'd been watching GGP:Greatland Resources ever since they bought the Telpher mine and started generating pretty big profits that should fund their other exploration projects. I decided having all my gold investment in PAF:Pan African Resources was a little risky, so it was time to top-slice a little profit and move some of it into GGP. I sold 1,912 shares at 62.6602p making £599.15 (100%) profit and liberated £1,186.11. I bought 455 shares in GGP at 266.6999p costing £1,225.43. Although the offer price stayed at 270p, the spread is quite wide so the bid price is 3% below that and my holding is 4% down if you add commission.
The next share to fall out of the top magic formula rankings was AJB:AJ Bell which is now 129th. I sold my 330 shares at 511.331p making £686.40 (68.5%) profit and liberating £1,682.39. This time I remembered my plan to hold the cash and buy small monthly investments of £250.
I added RAT:Rathbones Group to my next investment on 10th September, as they are 23rd in my Magic Formula ranking with a 5.34% dividend, 11.4% ROI, 6.51% debt to equity ratio and 4.4% 5-year earnings per share growth. They have been on a big rise since April but have dropped a little recently. I'm hoping the momentum is still upwards.
My other addition is PRU:Prudential, which is ranked 125th in my magic formula due to high debt and low dividend, but I've wanted to invest in it for ages and there's a possibility of some good shareholder returns as they sell off part of the business, so although I may regret turning my back briefly on the magic formula, I want to add them to my portfolio. These will also appear on 10th September and I have enough cash to keep this up for 3 months, and can hopefully generate £500 between now and 10th December to make it 4 purchases and around £1,000 in each investment.
Given I made £1,902 profit and potential profits only dropped by £1,809, the other profits increased by about £100.
The profits took my Year 10 performance past my target 10% to 10.7%, and if I sell nothing else in Year 10, I will still earn 8.4% which would be the best year for a while. I am however expecting lots more dividends, so as long as I don't realise a loss, it's looking good. My long term performance only improved by £15 a month and 0.2% to 4.5%, so it's going to take some epic profits to get up to 10%. I'm hoping JLP:Jubilee Metals will deliver me some of that.
I also had a £25 dividend from UKW:Greencoat UK Wind.
Getting closer to the injection line, as that includes the cash.
The big drop to the trend line is due to taking all the profits, but I think it was a worthwhile sacrifice.
Look at that little beauty! I'd like to think this is evidence of the magic formula system bearing fruit.
Getting closer to the injection line, as that includes the cash.
The big drop to the trend line is due to taking all the profits, but I think it was a worthwhile sacrifice.
Look at that little beauty! I'd like to think this is evidence of the magic formula system bearing fruit.
I had a bit of a scare, as the website I use for my magic formula ratios has removed financials from the available options. Fortunately I discovered that if I view the summary page and paste "-ratios" in the URL, I can still get to the pages. The worry is that they are going to stop supporting that data, which would mean me having to find a new source of data for my calculations. Fortunately I won't be updating it for a year, although I do want to complete my new AIM magic formula rankings, which I should maybe do sooner rather than later, as that's how I found BOKU:Boku, but I've not yet included all AIM shares so it's not a proper ranking unless they are all included
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