Saturday, May 10, 2008

Yet More on Investing

This blog entry is for "The Headmaster" who asked for some investing observations:


I enjoyed a recent lucky streak with buying shares through Sharecrazy,
in Ultima Networks plc, at share prices as low
as 0.60p, between January and March 2008 and selling many of them in
April 2008 after the reduction in capital gains tax from 40% to 18%, some at share prices of
well over 3p.

I can do little better but take extracts from my subsequent post on the Sharecrazy
site below. Most companies quoted on the stock exchange are known by their
electronic initials or EPIC so Ultima Networks plc is known as UTN:

"Having locked in as cash, good profits from UTN decided to start a new Sharecrazy p/f from the free balance with a view to holding for the remainder of the current tax year unless good reason for selling meanwhile.

UTN being the sole consituent of my previous tax p/f was a v. high risk one. The risk having paid off I'm trying spreading the load round this time and will compare/review outcomes in 2009.

Given that the new p/f is all with profit from UTN, losing the lot would cost me nowt so investment risks for the new p/f can be greater than if the need to preserve the capital
was acute.

The post UTN SC tax p/f now comprises:

ZYZ - having already dmor and holding in long term SIPP p/f (at a c. 30% paper loss to date) decided that time is ripe for ZYZ sp gains during current tax year.

ZRL - Les Ames mentioning this tinycap on his mkt summary post and dmor caused me to conclude that this co's holes in the ground might have some pay dirt to give its sp a boost during tax yr rather than having a black hole effect on PIs' cash.

XLT - recovery highish tech investment co appeals. Although its Agcert stake might be an expensive flop, a third party has put upc. $10m as well, which reassures

VLK- I had invested in this co b4 but exited at a loss. Communication needs in C21 are exapanding so the services/products of a co like this are unlikelyto lose marketability imho. An SC poster last week reminded me of the co so after looking at itsfin/fundies I bought a few.

SAR - another previously unprofitable investment I decided to try again now that it isessentially up for sale and with a v. low sp to reflect that.

LNX - again I have tried this unsuccessfullyb4. However its Spanish tax problems appear now to be contained and resolved with the authorities there. If so and if the results later this month signify that its trading is holding up, then the SP could head N.

IFM - film co bound to be highrisk/reward - but its tiny cap status and low looking sp appealed.

LDC - again one I have invested in b4 unsuccessfully but its NAV still justifies much higher sp.

BWB - water is going to be a huge problem in C21. A co that cleans up wastewater could clean up.

BSP - I don't know why I reinvested in this co. Too many share options etc but at 0.46p to buy - again well below NAV -I did perhaps because previously this had been a v. profitable investment in my p/f.

ACG - debt problems in the UK are not going away anytime soon despite banks' protestations about too high IVA fees. After all, sub prime debts are being written off entirely.Might be better all round for debtors to pay something even if middleman takes a fee

One more co to invest in which I am dmor on, then the p/f will be complete.
All imho so dyor

EDIT: UTN - I should have added that I retained some UTN shares in the new p/f

AND (the "one more co")
"PCF -Counter cyclical buy but its lending seems likely to continue as people still need to borrow occasionally, and to become more profitableas competitors fall by the wayside."

INVESTMENT CAUTION:

As previously posted though Mr Headmaster, you should never depend on
posts from bulletin boards or blogs for making your investment decisions
but should always do your own research and only blame yrself if the investment
proves to be a dud. Likewise don't invest cash you can ill afford to lose.

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