Choppy markets #investments
September and October weren’t good months on the investment front for me and November has been decidedly choppy. The stock market is volatile with the FTSE 100 bouncing around a bit. But there is some good news.
If share prices drop too much the vultures start to circle and we small investors look for bargains. I thought I had found some bargains in June, but I would have been better keeping my money. Monitise and Immupharma have both been disappointing. I bought Debenhams and ITV in August and they have gained a little bit. ITV gaining 5% so I’m simply waiting now for more opportunities. The prospect of a takeover of RSA insurance by Zurich didn’t go ahead, but RSA has been making steady progress. It’s still making a paper loss, but I think with insurance premiums rising a little it will come good.
Cable and Wireless (CWC) is now a takeover target and we shall see next week if that is going ahead. If I sell now, I make over 10% and I bought in June, so that’s a good return. The takeover could fall through. I think there will be more news before the final date, which I think is next Thursday, so the price might inch up a little before then.
I think Tesco is making the right improvements to make a good recovery. They have cut many ambitious plans and they are cutting lines. They really need to improve staff training because that is the ‘Aldi secret’ not just lower prices. I think we could see the share price double in the next 12 months unless there is a takeover bid, which is also on the cards.
Verona Pharma dropped and that surprised me. I thought they were a possible takeover target too. That is one I’m confident about and it could become a multi-bagger in the next 12months.
Solo Oil is one that will soar when the long awaited GSA is finally signed. That could be anytime, never!
Premier Foods is now making real progress and gained more than 10% this week. I expect that to hit a pound a share before long. Christmas will be a factor, they will probably increase sales, but can they switch Mr Kipling to a premium product?
There is only one thing that I’m really sure of and that is its politics that is depressing the markets right now. When interest rates go up we will see a slight change, but for the time being property will get the investment and that will be leveraged because interest rates are so low.
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