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The ups and downs of #investing #ideas #investor

There are ups and downs for the small investor. We make paper profits and losses all the time. The real profits and losses come when we actually sell investments. The paper losses are important, though, they reduce our financial security. I have known the value of my portfolio drop by nearly 10% in one day and that is a big drop. I stay calm and hope it will recover. My losses over the past two weeks are a little worrying. After a surge by Solo Oil, there have been a number of avoidable drops in the share price.

investor

Solo Oil

Solo Oil has some good assets but today’s RNS once again trashed the share price. Assets aren’t enough, the company needs to improve its investment strategy and its relations with small investors. It now looks like it is going to raise further capital to acquire the second tranche of shares in Helium One limited. These resolutions will be put to a General Meeting. I hope the meeting refuses them unless the new capital is by way of a rights issue. We don’t want the value of shares diluted anymore by an issue to an institutional investor who will then drip feed them back into the market, depressing the share price further. A  Rights Issue of one new share for every ten held would raise about 4 million. That would cover the second tranche of Helium One shares and leave cash to develop other existing assets. Then the company needs to work on its PR to keep the investors informed. Solo might even get away with another rights issue in 2018 if they can inspire confidence in the leadership of the company. I’m not suggesting a Ponzi here, just continued investment growth. Solo is an investment company after all.

Immupharma

Immupharma made gains this week after ending another phase of its testing of the lupus drug Lupazor. I am at least on a paper profit with Immupharma and I have great expectations.

Verona Pharma

Verona Pharma has potential but like Solo, it needs one of its directors to be given a specific shareholder relations brief. They need to keep the market informed and lower shareholder risk.

Dividends

Dividends are one of the bonuses of investing and Lloyds paid me a welcome dividend this week. It is now back in private hands according to the Tory press. It is, of course, a public company and in theory in the hands of the public if only the majority of the public were share holding democrats! I have a few more dividends to come over the coming months. Carillion saw its share price tank when it went ex-divi and I hope it will recover when the divi has been paid.

Investor

It is hard for small investors to diversify enough and I put far too much into AIM market companies. I’m going through a watch and wait period and I hope eventually to reduce my AIM exposure. I am still in profit overall and I’m getting a small return (4% +) from my investment in Zopa. Investors have ups and downs, I’m on a downer at the moment!

That’s all my ideas for this week, such as they are. If you would like to follow this blog just enter your email address at the top of the sidebar or follow me on Twitter for updates.You can also find links and ideas on my Facebook page.

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