Archive for February, 2011

Did a bit of portfolio clearing this week and feel better for it. – Three sales, ATC, VOG and ALO.

I have been watching Victoria Oil and Gas and Alecto Energy sit at around their current price for some time now and I felt it was time to move the money elsewhere. 13 and 14 % profit banked for the website.

Unfortunately this week’s small gains were trounced by my biggest loss for the portfolio so far. ATC Atlantic Coal – It broke all of my investing rules falling past my usual 20% bail out and losing my 34% which equated to nearly £600 loss. The drop was fuelled by the BOD announcing that was planning to raise 12m by a placing of 1.6 billion new shares. This would be fine if the share were offered to all share holders but ATC have decided be selective in whom they offer the new shares to…

Atlantic quote – “There is an opportunity to raise funds from a small number of institutional and other investors at the present time, including the Company’s principal investor, the Blackrock Smaller Companies Fund. The Directors have therefore decided to effect the fundraising by way of the Placing…rather than by offering all shareholders the opportunity to acquire further shares. The Directors believe that the additional cost and delay incurred in connection with any such offer would not have been in the best interests of the Company”.

A placing that is good for some and not others is just not fair play. This sent the price back to 0.85p and although I expect that this money will be put to good use, with shares being issues at 0.75p it could take some time before this can bounce back.

The cash from this week’s sale was re-invested in Ascent resources. AST have been on my watch list and in my largest running profit in my spread bet account for some time now. They have been trickling up since mid last year. Yesterdays RNS has somewhat de-risked. The following quote particularly grabbed my attention

“Ascent’s Managing Director, Jeremy Eng commented, “The results from the Pg-11 appraisal well, which reached its planned depth of 3,050m last week, have exceeded our expectations.  These results substantially de-risk the Project and underpin its commercial potential.  Gas was logged in all six reservoir intervals and as an added bonus gas is present in the unexploited and apparently naturally fractured Lower Miocene Karpatian reservoir, which we hope will contribute to an increase in the current P50 estimate of gas-in-place.”

Surprisingly, SP has dropped back slightly today but if/when the MD’s comments are realised and flow rates are commercial this will go crazy. I am looking forward to the next RNS; hopefully they won’t keep us hanging for too long!
Good luck all.

I have been quite content with the portfolio recently, hence the lack of changes. Last year I made a few sales on what I considered highs with intention on buying back in after a drop. This strategy worked well on a number of occasions but having looked at the figures and taking into consideration trading costs I would have done equally well just holding tight. This year, when in doubt I intend to hold. I am aware that this as it makes for a much less interesting website so from now on a intend to cover all of my shares and not just those covered in the trades table. – The original portfolio funded by the original 10k will continue to be reported on Wednesdays!

I am already starting to doubt my evolved strategy. If you take GKP for example. – Today the price rocketed from about 170p to 200p on news that the Iraqi goverment are to pass oil and gas law to enable exports… Last year I would probably have sold on this news and taken a nice £200 profit for the website… time will tell.

Early last week I decided to sell my Centamin shares. I have lost a little confidence in them lately. I chose to sell , partly due to the the uncertainty in Egypt, partly due to uncertainty about gold but also to provide some funds to get into BP. (British Petroleum). I really like idea of their new exploration strategy and you know they say… “It not what you know it’s who you know”. there is no doubt that they will be reporting massive profits next year and I cannot see the opportunity to buy in at less than £5 being around for long.

Last week I also decided to sell off KEFI minerals and Ortac both of which were moving in the wrong direction. KEFI minerals in-particular still looks to have so much potential but are waiting on 21 explorations licences (ELA’s). I am in no doubt KEFI will bounce back but I have no idea how long it will take to get these licences – it could be months… I used the funds to get into Cadogan (CAD). Up 10% this week!

I will publish all my holdings of the next few weeks and will try to publish my buys and sells on a fairly regular basis! – Wednesdays will remain just for the Website portfolio.

Good luck all.

Doug