dailytrading

I have been doing a little profit banking over the last few weeks. – The trades table has now been updated and is showing current holdings and the new realised profit figure of over £2000. A good result so far this year.

You may notice that a number of previous trades have been split into two buys. This was done to report the sale of half my shares in those companies. I needed to move some money out to buy a chapel… (as you do)

Current holdings:

APR Energy (APR) +11.8%

Aureus Mining (AUE) – 28.05%

CML Microsystems (CML) +31.72%

Coastal Energy (CEO) +16.4%

Gulf Keystone Petroleum (GKP) -17.77%

IP Group (IPO) +56%

Source Bioscience (SBS) +22%

It’s not been such a good couple of weeks for the portfolio. – Some good gains overshadowed by some big drops.

GKP – Knocked back massively by the Exxon takeover news. It will bounce back… In fact, started to recover nicely today.

The other big loser was Angel mining. – I should have learn’t my lesson last year when I lost money here last time! – Even though I had a small holding losses were mounting and a 40% drop was sufficient for to call it a day. Sometimes when you think – “It can’t possibly go down any more” – IT CAN! This was always a risky share  This equipment breakdown may mean they cannot meet the targets agree with their SEDA. – And then what??

Some excellent gains on the rest of the portfolio. In particular Coastal energy now showing over £1000 profit. CML microsystems, GB group and IP Group all showing excellent gains and are all holds for now.

The only buy of the week was Photome (PHTM) that looks very cheap right now. Bought for 45.5p today.

It’s been another V good week, The running value of the portfolio is up over £450 on last week.

A few good and a few no so good trades to report…

Firstly, I was acting a little impulsively when I bought Supergroup (SGP) at 580p, suspecting they were oversold. Mistake! – I realised my mistake when my stop loss was taken out at 545p. They are now trading even lower at around 520p! If we see further drops it may be worth getting back in…

Tesco (TSCO) – I sold out of Tesco today as it looks like recovery is going to take longer than I anticipated. – I expected to see a steady rise after the big drop following the profit drop announcement… It didn’t happen as quickly as I would like and although I expect to see Tesco bounce back I think my money is best placed elsewhere

I have topped up in one of my favourite shares, IP Group. – They keep announcing great news and although they are really just venture capitalist’s, their partnership model with top universities means theat they are funding some very clever minds. – I think it really is just a matter of time before one of there many pies become huge and make me alot of money!

Angel Mining (ANGM) were another buy this week. – I have been here before in 2010 and lost a few quid. – I could see the potential then but just got in way to early last time. This time it’s a little different. They are now producing increasing amounts of gold and the prospects for their other developments look very good. I still consider this as a risky venture as progress is dependent on maintaining support from their investors who have set some quite demanding targets for production…

Highland Gold Mining (HGM) were the other buy of the week. I bought at 160p inc charges and are now showing a small profit. Their largest investor pulled out this week due to a change of strategy and it caused the share price to be knocked back to what I considered to be a great entry point. They are quite efficient with low production costs, cash rich and are producing more and more.

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Those of you following the trades table will have noticed two new buys this week following the sale of KBC that was looking to be a longer term prospect than I would have liked…

Dialight (DIA) is a LED manufacturer that has seen its SP rise spectacularly particularly in in 2010/11. Its products save clients’ money, so it has not been affected adversely by cutbacks to public sector customer budgets.
The SP has been testing 800p for the last 10 months. There is some volatility as this share is now ‘on the radar’. The SP had trickled down towards the end of 2010 to 685p and provided a great buying opportunity, it returned to 800p+ within a fortnight. It struck me that the recent drop to 770p would also be short lived, so I bought in,( perhaps a bit too soon?) I’m hoping for a break through the 800p barrier. The company is no longer ‘cheap’ with a P/E ratio of 32, but has solid finances and has established regular dividend payments whilst ploughing back a third of its profits for future growth.
I see the share as a hold, but with the possibility of some short term selling and buying along the way.

Aureus Mining (AUE) was formed in April 2011 when super successful African Aura Mining was split into Affero Mining and Aureus Mining, separating its iron ore and gold mining activities. Since the split the shares have performed less spectacularly, with Afferro only now coming back to its start level. Aureus recently has begun to move, gaining over 20% this month hitting 90p at one point.
 Singer Capital has said that “given the quality of Aureus’ assets, we think the shares should be valued above most of its peers and using a per ounce value in line with its peers gives Aureus a net asset value of 102p”..
This alone implies around 20% upside to my buy price and with more resources being proved, increased production and likely rising gold prices, the company becomes an attractive takeover target. All in all, a very positive outlook.

Thanks to Troglotrader for putting me on to this one…

Doug