Amazingly really, whenever the market tries to fall, it gets bought up.
The question, given all the problems in the world is why? Well, who knows, the market is always mad.
I guess for now it looks forward to 2021 and 2022 and assumes virus problems will gradually drift away.
For the moment there seems a quite tight trading range but with big moves up and down. The big move down then next day seems to become a big move up!
August can often be tricky with less liquidity and market moves can be a lot faster as things move up and down like lightening with little trading going on.
This makes entry and exit points a lot harder and I try not to do too much in August. I’m usually away on holiday and generally in a normal year keep things as they are. This year I am holidaying in the back garden and will try and pretend to be in Spain anignore the markets as much as possible.
I’ve bought some Network International (NETW) which we looked at during the last zoom beginner/improver seminar as a share with news that had just come out.
On the day, Network announced a fund raising to buy another company. It’s a payments company and it wanted loadsamoney to buy DPO which operates across Africa.
Seems a decent idea and Network’s share price is a long way off highs and with the share price below the placing price seemed a reasonable idea and bought some live at the zoom seminar. Could be some decent upside with 500p a fair target.
It was also interesting to discuss with those at the seminar whether or not to buy a share which has just issued some news.
In the last update I mentioned I was looking to buy some new K3C as I noticed it fell below the price institutions bought at in a placing.
The price got too tempting and I bought some.
This week it announced an immediate profit enhancing buy of
Quantuma using some of the proceeds of the placing.
With that decent buy and the cash it has K3C looks way undervalued at the moment. With patience some major upside to come. It’s still buyable at the fundraising price! Too cheap for me.
I bought some I energizer (IBPO) . This is a lovely under the radar type of share with a lot of promise.
It’s in the technology services arena. As we transform to a digital world, this company takes advantage.
It turned net debt to net cash and even increased its dividend, rather unusual for 2020.
It says it sees a “sizable project pipeline” for 2021 so my plan is to buy and hold maybe for a couple of years.
I picked up some Spirent (SPT). This one is all about the oncoming 5G revolution and it specialises in testing.
Although it has already gone up a fair way there is potential for a whole lot more.
Today it reports a decent amount of 5G related contract wins as well as very strong cash, an increased dividend, lots of new products and it has been selected by Amazon for Alexa as a test lab.
Lots of positives here and happy to take a long-term position at current levels. It is down a little today on results but looks like just a bit of profit taking and it could easily head over 300p soon.
I have taken a bite of Greggs (LON:GRG) (See what I did there?) Mainly because the share price has halved since Covid and this seems a decent time to rollover a few shares (See what I did there too – and this site is free!) It was doing very well pre virus. Its vegan rolls were flying (just don’t ask what’s in them but I bet it ain’t pretty). Problem is a lot of stores are in transport hubs and high streets and those aren’t the best places right now. But shares are on a Rishi Sunak style discount offering so worth a bash – if they start to sink much below 12 quid though I am out.
I liked the look of Morgan Sindall (LON:MGNS) after it reported this week and bought some. Considering Covid, the shares look decent enough and it still has cash.
It’s not my kind of sector but I fancy a little exposure to construction and Morgan Sindall looks the best of the bunch, so I am in!
I took a small loss on the small position I had taken up a while back as the shares had started to slide – now back in, I’d hope to hold for a while for more upside.
After all the shares have come back a long way!
I couldn’t quite resist getting some ITV – and I know the results today were dire. As expected.But. The markets look forwards. Productions are starting up again, and ad revenue should come back.
The value of ITV though is hidden in plenty of assets like the studios and if anyone wanted to buy it they’d have to pay at least 130p I reckon.
I suspect the share price is somewhere near the bottom. However it is on the risky side. I added some more Flutter, (LON:FLTR) heart all a flutter. Shares keep rising and they seem a decent bet. First position already nicely in profit and the second looks like it has decent odds of doing well too.
The opening up of the US is key here and it could be one of the best FTSE performers this year unless there is massive new anti gambling legislation here.
Also added more of drugs co Vectura (LON:VEC)- shares are breaking up and they look rather cheap – and you never know with these companies – sometimes you get lucky with a find of some kind.
I have never understood why anyone ever bought shares in the AA with its crazy debt pile. I have made a fortune shorting them, over time personally I reckon over £30,000 and quite a bit for the website too of nearly £6,000.
This week there is news that some crazies want to buy it or it will get re-financed. Well, it can’t carry on like this. Time for me to move on anyhow and so the shorts for the site are finally banked.
I took profit on Eleco – shares just aren’t moving and lost patience there for now but profits nice at around £1,200. Also lost patience with Stck and that went for a profit of £420.
Elsewhere considering the markets overall are a bit weak, very happy with a lot of the recent buys. Be interesting to see where we are by September – I will be back then with more…