Looking for certainty in an uncertain world #Investments
Any sign of common-sense and cooperation between the superpowers is good for the global economy. There doesn’t seem to be much chance of that at the moment as things get more volatile. Someone once said there is never a bad day on the stock market, when it’s down you buy and when it’s up you sell. It’s not quite as simple as that but there are always opportunities. We need certainty but we find continued risk and uncertainty.
We won’t find certainty but at least the bigger FTSE 100 companies provide a degree of certainty and we are seeing a flight to safety at the moment. With the pound weak against the dollar, gold looks high in sterling terms too. There are slabs of gold on sale now that are divided up like chocolate bars so you can break a chunk off to barter when the global economy collapses. This week the stock market has coasted along and traders have just taken a wait and see attitude while moving funds safer. I have reduced my exposure until I see how this Brexit malarkey pans out too.
Carillion is out of favour with brokers at the moment and so in favour with me. Sentiment rather than evidence is sending it south and so I’m watching and waiting. Carillion has some good contracts and is in profit and most of all pays a good dividend. The dividend is the return that we all expect but quite often we are happy with a growth in share price instead as profits are reinvested. The ability to pay a dividend is more important than the dividend itself. I think growth for Carillion could be limited so it is a safe haven rather than a great investment. It is a good share to have as part of a portfolio that includes other companies that offer either lower risk and higher risk.
Solo Oil added some intrinsic value this week when it issued an RNS to the effect a licence had been granted for continued development at Horse Hill. That news wasn’t greeted favourably at first but I think the news had a positive effect on the share price overall. I’m still 60% up and hoping for much more. If positive news came from Tanzania and Horse Hill at the same time the sentiment could change dramatically and so could the share price. There is no certainty there, of course.
Verona Pharma has a lot of potential but they need more investment and they are doing a share issue on the NASDAQ to get a large amount of investment to develop their drugs. I think it will be a while before I see the share price on the AIM market improve but it has been as high as 6p and I wouldn’t be surprised if we didn’t see 10p before the end of 2017.
Lloyds Banking group
One FTSE 100 company that looks to have upside is Lloyds. The share price has dropped 10% since February. They went ex-dividend for the final and special dividend yesterday and those dividends will be paid on the 16th of May. The worries with Lloyds is Brexit again but I think that is exaggerated. Lloyds is closing a lot of branches which will increase efficiency and encourage online banking. They do need to improve customer service, if my experiences are anything to go by, though.
Immupharma is another AIM Market share I hold and have high hopes for.They too needed investment and did a share issue last month. Now the market is recovering from that, the share price is climbing again. Their drug Lupuzor has a lot of promise but constantly needs more investment for full development.
That’s it for this week, remember there is no certainty in investing and so do your own research and assess the risk yourself. I only offer ideas based on personal experience. If you would like to subscribe to my blog and receive an email each time I post just enter your email address at the top of the sidebar or follow me on Twitter for updates. You can also find links on my Facebook page.