It really is all about the virus!
Markets have been positive this week on news that a vaccine might be nearer than expected. But imagine if that turns out not to be true, they will go straight back down.
All in all though actually the last month not a lot has happened except good shares have been going up and bad ones down which suits me, sir.
For the time being then it’s almost business as usual like it’s 2019. I’ll continue for now to pick strong ones or average up.
Talking strong I bought some Qinetic (LON:QQ.) It put out a very decent statement this week and the fundamentals here look great and I think it is well undervalued.
It looks like a long-term winner to me with plenty of potential upside. It is gradually building into a substantial company and continues to use its cash pile to buy others.
This week it bought Naimura for cash which looks excellent and adds further software and data analytics.
This science and engineering outfit looks well run and has a decent future. Long-term hold unless the virus makes a massive return.
I’ve had a flutter on.. Flutter!
Flutter is a massive gambling outfit and owns the big names like Paddy Power. It’s raised a lot of money easily from investors and institutions.
The opening up of gambling in the USA provides a lot of opportunity for further growth and with shares breaking up it looked a good time to take a flutter on the shares. (Note: I know, I can’t keep using this gag for much longer). (As I said to the wife last night).
Debt is low and it looks like all steam ahead. Potential downside? Well, governments are trying to control gambling and there is potential for further regulation.
Talking gambling I added some more 888 (LON:888) as I carried on averaging up.
Covered this one a lot in the last update – there is a lot of untapped value on offer here and I think a bid here could be on the cards this year.
With the US opening up, if I was a larger company in the sector it would look like a decent add on. I bought more Codemasters (LON:CDM), a few more live at the online seminar this week.
In fact we had an interesting chat about the various computer game companies and was asked why I favoured this one over the others.
Simply, the pe ratio on CDM was just a lot lower than the others and it seemed like it had some catching up to do. 450p looks a reasonable target for this one which remains too cheap compared to its rivals.
I bought some Allianz Technology, (LON:ATT) a trust that is quite handy as it gives me some exposure to the top US tech companies which I don’t have any exposure to except Zoom.
Its top holdings are Microsoft, Netflix, Amazon, Crowdstrike, Paycom. MongoDB, Ringcentral. Samsung and Lam research. It is a nice cheap way to have a stake in all those in this trust.
Shares in these types of things rise and fall depending on the net asset values of the trust taking all its holdings into account. Obviously should the US market start to sink badly then “I’m out!” I shorted Halfords (LON:HFD) as I have a few times over the years. Awful service, and the rating just looks way too high especially taking its debt into account. Looks overrated on the thought that more people are buying bikes or will buy electric scooters. Rbg Group suddenly spiked up – I quickly realised it is because it was one of the sudden investors chronicle “tips” that get emailed out.
Amazingly these tips can push smaller shares up crazily for no reason other than there is a rush to buy in. Frankly a 20pc uplift for no other reason than a tip was enough for me to say “thanks so much” as it hadn’t moved for ages so I sold for a profit of £1,250.
Usually after the initial spike for the tips the early buyers cash in then later buyers get fed up and sell. Once the share price goes down again, one can buy back in!
So markets remain for now volatile but seemingly marooned in the same territory. Looks like they are waiting for virus news one way or the other so it all remains a bit of a gamble for the moment.
For beginners only: Sat Aug 8th
No knowledge expected, nice and slow, starting from scratch. Includes share screening, how to research, build a portfolio, using charts, setting stops, trade planning, psychology. How to spreadbet and go short. (No live markets so level 2 and live markets are not included)
Improvers and near beginners Aug 19th Join me for a live markets session including screening for shares, research, trade planning plus level 2, supply and demand and live markets. Plus live spreadbetting and
If a total beginner you could potentially do both!
FOLLOW UP July 29th
For those who have attended a seminar before for a smaller group, a day of live trade hunting, more in depth level 2 and supply and demand and plenty of discussion. This one is at a faster pace than the starter ones and some knowledge already assumed!
If interested in any of these zoom events (all 10am-5pm from your place) mail me at email@example.com with
“Total beginners, improvers, or follow up” in the subject line. Extra summer update next email: Aug 6th.