Just when you thought the mess couldn’t get any worse it does!
The markets do not like uncertainty and it’s hard to be a lot more uncertain at the moment.
That’s why I told beginners at the seminar to go very slowly indeed at the moment till the various brexit/election blockages start to clear.
It hopefully won’t be that long but it is probably wise to take care until it is absolutely certain we won’t get a hard left government because then all hell will break loose.
And it is also really worth having cash on the sidelines in case and not getting too leveraged up in spreadbets.
There is a case to make too that markets could boom up if brexit clears up and there is no Corbyn election win – expect markets to rise strongly then.
As usual tons of ideas came up at the seminar for trades – I will share one or two but the others will stay with me and my delegates.
Remember girls and boys about potential future trades and being patient to try and get in at the right time.
Given the current political mess buying anything at the moment comes with higher risk than in normal times. One thing I would suggest is go in with lower stakes that you might normally do and be prepared to get out if things take a nasty turn.
And avoid anything that in normal times would be considered to be higher risk.
In these times I definitely prefer companies with a good cash bank or at least a low debt.
A company with a lot of cash is Kape and I bought some.
It has cash of $36m and no debt and this global cybersecurity outfit showed strong growth in revenue and profit.
For me, this leaves it looking very undervalued and I am looking for a push up to at least a quid assuming the market doesn’t blow a fuse over Brexit.
Perhaps a catalyst for an upswing would be a move to spend some of that cash I bought some Hikma (HIK) unusual as it has a market cap of over £5 billion so it is a big company. This came up on a screen of breakouts at the seminar.
But the market seems to love it and when it tries to go down with the market it then seems to find strength and go back up.
I’m not sure I will be in for that long – I suspect if it goes up a bit more
I’ll stick in a stop at break even and then move it up. As of course what goes up a lot can come down.
And if the whole market went down it would take this with it. So very much a get out quick trade if it fails on a breakout.
I picked up some Ten Entertainment (LON:TEG) which we discussed on the day.
I already am in a nice profit with these and bought some more. Results were very decent.
This bowling alley company just gradually goes up in time and the one I go to is usually busy.
My main reason for buying it though is I think it is on my list of potential bid targets.
The much larger Hollywood Bowl might look at it at some time. I think if I was Hollywood I’d consider a massive fund raise and a buy of Ten.
After all they do the exact same thing!
We chatted pawnbrokers and compared H and T with Ramsdens. I made a decent sum on H and T already but am out now.
Ramsdens (LON:RFX) looks the one to be in as it has net cash whereas H and T has some net debt.
With the support of net cash Ramsdens looks to be the better value. I have made some money on this one before and it seems to be very gently rising.
If things go pear shaped this one could even rise as gold would probably go up and I suppose more people will pawn their goods.
This tech group achieved a record operating profit and order intake and says it continues to get good quality work.
This looks like a decent long-term hold idea for the isa and would expect to keep it now unless conditions change. I shorted Trainline. (bet on it to go down). However I am so annoyed. I was about to short it at
a fiver but got distracted. Ok, I decided to watch TV then forgot about the short idea!
Next day an announcement that shareholders had sold a massive tranche of shares. And the shares were hammered.
But, I still think these are way overvalued. I think the £2bln valuation is nuts given the not so great profit and the massive debt.
No wonder some of the shareholders wanted out. I bet they do it again sometime.
Easy business to get into, how’s about AppleTrain or AmazonTrain? So I shorted live at the seminar even though I missed some of the fall.
The last nfc bought got stopped for a loss of £410 but hold the rest and topsliced a little xpp for a profit of £1,055.
I have started closing out some of the ETO positions – a rival bid is beginning to look unlikely so for the website have started closing out positions. As you know from last time the site made more than £100,000 with some patience and I have closed out the last three positions for profits of £10,959
Those who came to the seminar saw the mega amounts I have made shorting the FTSE (a lot I shorted at 7700 ish). I don’t cover this kind of thing on the website as I don’t like to encourage the inexperienced into such riskystuff for those who might lose control of such trades. It might well go up a lot if Brexit things go its way currency wise so have moved stops closer to the current price.
For the moment I think the idea would be “Keep calm and carry on.. to smaller amounts…”
If you buy too big it might be hard to get out in a crisis. Thanks for the kind words on Naked Trader 5 out this week – you can get it on amazon, another five years of trading experience inside!