Rampers and rumours #investments
I wrote about the news of oil in the Weald basin last week and how that was affecting the share price of the companies involved. The statement about 100 billion barrels of oil, certainly ramped up prices, but they dropped dramatically again this week! Solo Oil hit 0.71, but is back at 0.55 today.
The rampers pushed up the price temporarily, but if you look past all the ramping and rumours they have actually discovered oil. The question is how much, but with advanced technology that can estimate where and how much before they start drilling, that will save money in the long run. Although the share price of Solo has dropped back to 0.55, that’s still 10% up on the beginning of the month. Of course when it went up on the ‘news’ and the rampers added to the sentiment, many people sold and made a few quid. They bought at less than 0.5 and sold a 0.55 and made a nice profit, but will probably be back in at a higher price than 0.55 next time the rampers put a good rumour around! I’ll just hang onto my holding rather than do all that buying and selling and save on the dealing fees and stamp duty.
Verona Pharma was my last investment and it dropped to 2.45 giving me a substantial loss on paper. This week for no apparent reason it’s been moving up nicely. I paid 3p and today the price is 3.1 giving me a small paper profit. AIM shares seem to jump around a lot and this one has gone up 5% in two hours this morning. It can drop just as fast, but I have a feeling it could gain even more today and through next week.
Graphene Nanochem could do with some rampers sending the price up, but doesn’t seem very popular despite the cutting edge technology. This type of company tends to just drift until it announces a new contract or a new breakthrough and then it soars. News of new developments leak and a sign that some good news in the shape of an RNS is about to be released can be small and sudden jumps in the share price. This week, Graphene Nanochem has jumped and dropped back, but is still up over the week by more than 10%. Is news coming? We shall see…
Tesco has been affected by the rumour mill too, but the rumours are negative. Tesco went up 6p from the beginning of the month and now it’s down 5p from the beginning of the month. Tesco changed it’s mind about opening some new stores and is changing strategy. That change is for the better in my view, that why I invested in them. Superstores aren’t the way forward.
Premier Foods is one of Britain’s largest companies and I keep waiting for the share price to get past my average which it did this week. They then dropped back and are currently on 45.25. I need them to go up just one pence to be in profit again. I can wait! The directors paid an average of around 80p and I doubt if they intend to lose money.
My current return (on paper) has gone up from 9% at the beginning of the month to 15% and with all the political uncertainty and posturing; I think that’s pretty good. The hedge funds aren’t doing that well.
Please remember I don’t give investment advice, share prices go down as well as up. I do hope I have given you something to think about though. You can subscribe to this blog using the widget in the sidebar. I write on ‘life’ on Mondays, photography on Wednesday and finance on Friday. I also have a WordPress blog. Some of my stuff is syndicated too and some articles are used by the Express and Star newspaper.
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