Saturday, April 19, 2008

More on Shares

I have blogged before about my investing in ZYZYGY (website link is: http://www.zyzygy.co.uk/ ).
And the LSE/AIM epic is ZYZ.

One trouble with investing in a tiny company like ZYZ is that the wait for
news can seem endless especially as the share price usually falls
during the wait so if you are impatient the investment, can be sold
at a huge loss. Currently my ZYZ shares are worth c. 45% less than
my pension fund paid for them - though I hope that news is just around the corner.

Investing for pensions is a long term business and as being patient all the time
is difficult I also try on occasion some short term shares buying though
against advice of the not putting all eggs in one basket kind,
I prefer to research a bit and then put all the available cash into one
usually idiosyncratic company's shares. In January 2008 I came across
a company with a really odd mix of services and goods on sale:

Flower pots for one; lawyers' computer software for another; LED light bulbs;
battery bikes for adults plus a selection of children's science learning sets and a web based
market place fulfilled the idiosyncratic investing criterion so in January 2008 I invested
some July 2008 tax money in Ultima Networks plc (website http://www.ultima-networks.co.uk/ ) LSE/AIM epic UTN. The first tranche of shares
in this tiny company cost 0.60p each. Shortly afterwards it seems that a craze
for battery powered bikes took off with 55 year old commuters with the result
that for a brief moment earlier this month the share price hit 4p and even
now is around 2p. So I sold off the sum needed to pay back my original
stake and can keep the rest as a free ride so to speak.

Maybe some
companies are intrinsically more interesting than others (a little like people can seem though in reality every human being is fundamentally interesting; it's just that
more patience can on occasion be needed to discern the interest in some people
than in others)
but whereas I am still waiting for ZYZ to do something, UTN's management has
promised more news before the end of this month. (Always do your own research
and never rely on blogs or bulletin boards for investment advices).

This is a good time for my personal investing anyway
even though the western world's stockmarkets
and banks are having a credit crunch of a time.

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