Archive for the ‘Companies’ Category

One of my recent portfolio additions Beazley (BEZ.LN)  has been skidding along the bottom range of share prices I considered natural volatility, unsurprisingly since around when I stocked up for my portfolio. This was due to an RNS indicating that interest rate changes were impacting this quarter’s revenues from their financial investments, when compared to YOY figures.  

This might possibly have spooked me more than it did, but I supposed that it was probably not really a big deal given the bigger picture of the future longer term impact which should be positive.  And not much of a concern against the backdrop of improving data on most of the other Insurers financial measures. 

Maybe though this was not a view shared by many others, as recently the share price has continued to fall and has now crossed over into my stop-loss territory.  Strangely though rather than allowing nature to take its course, and the stop-loss to occur as one should do using sound investment philosophy.  I have decided that I know better, cancelled and have held-on way past beyond where I should have got out to protect my capital.

Now having made this error,  I have the dilemma of biting the bullet and jumping out now with a bigger than planned erosion of capital (and loss of pride), or remaining patient and riding this one out back into the black. Which will surely happen. I think.

Incidentally the riding out of troubles of my speculative shares held in Ruspetro (RPO.LN) hasn’t exactly gone swimmingly well.   In fact it is still languishing as a 40 something % loss. Which is why I am already regretting what is possibly another silly mistake albeit of a much smaller magnitude.

One thing is for certain though, this is the last time I am going to interfere with a stop-loss. 

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Having read a few recent articles on fracking.  And just this morning hearing about the recent backing by no less than our PM who was more than upbeat about the possibilities, that the UK shale gas deposits represent.  I can’t help but wonder if some UK shares which are directly or indirectly involved, are going to be the beneficiaries of any future booms in this sector.

So with this in mind and after doing a bit of scouring around on the internet, I have added Alkane Energy (ALKN.L) and IGas Energy (IGAS.L) to my watchlist, along with another share I have more than a passing interest over Elementis (ELM.L).

I am not sure how things will playout in the UK shale gas scene, but I expect one or more of the above to figure somewhere when the dust settles.

While I don’t have any definite plans, to add any to my portfolio, I would be foolish (I think anyway) not to at least keep a very watchful eye right from the start.

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Another one of my portfolio heroes at the moment is (LGEN:LN) and todays excellent RNS announcement regarding H1 operating results has given it a further push, in fact the share is now up and over the £2 mark. And in light of the fact that the RNS also mentioned that the dividend has taken a 22% upward hike it has helped make up my mind, to not bank any profits just yet.

As the saying goes though, “what Financial God giveth with one hand, thou taketh away with the other”. Indeed Barclays (BARC:LN)  is posing a dilemma for me at the moment with its proposed shares issue.  I am torn between taking up the offer, or selling out now and banking the profits.


(1).  I take part in the rights issue, and dilute myself by 25% over the remaining shares, partly off-setting the gain of getting the issue at 40% discount.

(2).  I crystallize (love that word) the profits now and protect the capital from unknown (unknown to me at least) impact of this issue later down the road.

The problem is that by selling and releasing the capital (crystallizing the profit)  I will need to redeploy it sooner than I hoped, because it is held within an ISA, and under current rules cash can’t be held in those for very long.

So if I choose to do (2). I am faced with;

(3) Ploughing a capital amount equivalent to around 22% of my portfolio’s total value into a new share from my watchlist, just a short while after making a double purchase already.

I am going to reserve final judgement until after I read the Rights Issue Prospectus, but I am starting to errr (is that a word) towards (1). And playing the long game. 

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