Global risks #investments
When you’re investing in the stock market there are always political and global risks. Will the UK leave the European Union? It could affect trade and so it is a risk. The refugee crisis and the military action in Syria is a risk. As one risk disappears the politicians create another risk, this leads to a volatile market. You can lose money in a volatile market and you can make money.
My focus this week has been on the price of Brent oil which is a reliable indication of the market in oil futures. The stockpiled reserves of oil are high and there is little sign of the supply being cut.
I see a gradual climb in the price of Brent over the past few weeks from $33 up to around $37. I have been comparing the price of Brent with the share price of Premier Oil which I think could be a good investment when the price of oil starts to climb again.
The uncertainty caused by the referendum on Europe is affecting food companies and some engineering companies. Premier Foods was ticking up nicely but they could be affected by a Brexit. I think when Premier Foods share price does start climbing with good news on profits driving it, it will climb rapidly.
Lloyds Banking group share price is recovering nicely. I bought back in January at nearly 64p and they are nearly 73p today, so I could sell and make my 10% now but I’ll wait. Lloyds did go as high as 90p recently and I see no reason they can’t go to a pound. Barclays also looks like it could be a good investment.
Oil and gas
There has been a lot of interest in Solo Oil who have tested gas flows in Tanzania and oil flows in the UK. The latest test at Horse Hill produced an oil flow of around 900 barrels a day and Solo’s oil price jumped as a result and it’s up again. Some investors are taking profits but it’s a good long-term investment. This is only the beginning for Solo Oil. When the gas starts to flow in Tanzania and oil in the UK Solo will, at last, have an income to reinvest.
I have three pharmaceuticals, Verona Pharma made nice gains this week and I could now sell at a 20% return. Immupharma is at a 50% loss but is creeping up now and looking more promising. Their Lupuzor drug looks very promising. My other Pharma is a FTSE 100, well-established company but GlaxoSmithKline hasn’t given me the return I had hoped for.
Investing in AIM companies is very risky and I have bought into too many. I think the prices are beginning to creep up. Even Graphene Nanochem looks more promising. They dropped to a low of 8.5 and now they have crept back up to 11p so all is not lost, at least not yet!
The market has been turbulent this week but has made some gains. Surprisingly, ITV has been one of the fallers. My big gains have been the AIM shares this week. Even Monitise is in a positive mood today. Monitise is up over 33% and I haven’t seen an RNS or any news to explain the rise. I suppose us private investors will be informed last as usual.