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Diversity rules, OK? #investments


The stock market rallied a bit yesterday after the Federal Reserve decided to delay interest rate rises to later in the year. Uncertainty still worries investors and it seems this morning some dealers are taking profits and so the main market is down. I would be down too, but diversity rules for me and so I’m up as some of my AIM shares come good.

diversity rules

Solo Oil

Solo Oil dropped like the proverbial brick after a placing at 0.18 but in a podcast the chairman has indicated he would have liked that placing to have been public to give private investors a chance to get in on it. There is an RNS this morning:

Aminex PLC on Friday said it has signed contract for the rig to be used to drill the Ntorya-2 appraisal well covered by the Ruvuma production sharing contract and said it has an option to use the rig for a second well.

The Caroil 2 drilling rig is currently on the Ntorya-1 well pad and it will now be mobilised to the Ntorya-2 pad, which lies around 1,500 metres away. Aminex has a 75% working interest and is the operator of the well alongside fellow London-listed Solo Oil PLC with the other 25%.

That news sent Solo’s share price up over 2%. The bid price actually went from 0.21 to 0.22. Neil Ritson said he expects the price to top 1p by next year and he is a big shareholder. That a big increase. Solo is an  oil investment company and diversity rules for Solo Oil too, with operations in many countries. Their assets in Tanzania and the Weald Basin in the UK seem the most promising and they could hit the jackpot with either.

Verona Pharma

Verona Pharma is more focused and diversity is less of a goal but they are developing a much-needed new drug. I haven’t seen their latest good news but it sent the share price up over 7% this morning.

Taylor Wimpey

Taylor Wimpey saw its share price crash on the Brexit vote but has been making solid gains since. Diversity is their watchword too, with builds around the UK taking advantage of the housing shortage and the excessive demand in London and the southeast. I have enjoyed some good dividends over the last year too. I did sell TW when the price hit 200p and then bought back in after the vote for 127.5. The price today is 156, so that was a good decision.

Dealing Day

Once a month the Halifax has a discounted dealing day when I can deal at a discounted commission for a couple of hours. Commission for small investors eats into returns and so I always take advantage of the reduced commission period. I have to fund my account in advance, but this week decided not to deal. I looked through my portfolio and decided that the diversity of the holdings could be better but couldn’t see a good reason to sell or buy this week. I changed my mind after the dealing period had started when I realised the cash in my account was just sitting there and not earning me any money. I saw an opportunity when I realised that Royal Dutch Shell calculate their dividends in USD and they pay quite good dividends. That means their next dividend will be higher because of the conversion from USD to GBP. I had RDS–B on my radar because any increase in the oil price would see a corresponding increase in their share price. I decided to buy a few shares and empty the cash in my account. The share price gained 50p the next day so it was a good decision (so far).

That sums up my investment ideas this week. Because I think, diversity all the time, the AIM shares often balance out the more popular ones on a day when the market is down, like today. I have been pleased to see Premier Foods are gaining sales for its new products and the share price is slowly gaining ground too. W H Smith is now stocking their ‘cake on the go’ lines.

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