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Share dealing and diversification #investments

Investments for most people just means some peace of mind. They are an insurance policy in case disaster strikes and if there is a real financial disaster such as a global economic crisis then gold is the investment to have. Investing in the stock market is fraught with problems because you can’t buy directly, you have to go through a broker who will undoubtedly be either not very good or will charge you outrageous dealing fees. I trade through the Halifax share dealing service and try to use the reduced dealing fee once a month. I’m not sure when that will be this month but it will only be for 2 hours.

dealing on the stock market

Debenhams

Debenhams didn’t have a good Christmas and have issued a profit warning. They really need to suspend dividends now and invest in their stores. I have never actually been inside a Debenhams store and so I looked for a photo of the inside of one of their stores. I didn’t like what I saw. It didn’t say up-market to me, their stores look like many others and they have a permanent sale on. Debenhams share price fell yesterday on a profit warning and is falling again today but I think the company can recover and the new CEO is promising quicker reorganisation.

Carillion

Carillion now seems to be slowly recovering. Its profit warning saw its share price crash and now it is bouncing back. Both Carillion and Debenhams could be worth buying and could recover if held for a few years.

Immupharma

Immupharma continued to perform well this week rising from 168 to 182 but seems to be settling at around that mark. We might see £2 a share next week but there is less interest now. I think it is still worth buying as it will continue its climb when some more positive news is released.

Diversifying

By diversifying, I have cancelled out the losses with the ones that have gained in the short-term. In the long-term, I hope to get a return from most of my holdings. At the moment, Immupharma is giving me a great return, Tesco is up about 20% on the price I bought them at and Lloyd’s Banking group has an appreciating share price. The rest are making a loss but mainly because I sold all the ones that had made me a good return. My portfolio isn’t diverse enough but it is improving.

Watchlist

I have a long watchlist of shares I am considering buying. Alliance Pharma was high on my list but I didn’t buy because I already had too many AIM companies in my portfolio. They have done really well this year. By contrast, since I sold GSK, their share price has fallen. I might consider buying GSK again but they are a company that makes additional profits when the pound falls and I’m not sure which direction the pound is going now. Optibiotix Health is another AIM company that interests me. They look very promising but I’ll watch and wait for now.

Overall

Overall, I am still very cautious the stock market can become volatile at any time. Brexit and Trump are the main wildcards this year. I will probably sell Tesco this month and add to my cash reserves ready to take advantage of a more volatile stock market. I’m fairly positive about Premier Foods which is drifting upwards. If Christmas was good to Premier Foods and they improve their cash flow that could send their share price up to the 50 mark which would give me a return on paper. Their Christmas advertising seems to have been effective. Overall, my portfolio is 10% up on last month so I’m entering 2018 in quite a positive mood and a much better position.

We don’t make a return or a loss until we sell or the company goes under. I shall probably sell Tesco this month and bank my 20% return. I doubt if I will buy anything but keep my cash reserve high enough to take advantage of any shares I think are undervalued and offer a good opportunity.

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