DIY Investor Magazine
/
March 2014
26
June 2nd 2014
Fed up. This morning I bought my usual £2000
opening tranche of the two I highlighted at the end of
last month, DTG, an airline and pharma company CLIN
that I’ve traded in and out of before always doing
well. I looked long and hard at my level 2 price data
for about an hour but still got my entry price wrong
in both cases. I paid 279.65p for DTG and 455.84p for
CLIN had I waited I could have paid less.
Both shares have retraced and appear to have
bottomed out, if they prove to be as good a call as
SCPA (bought a few days ago) the small loss of profit
on the poor entry point will be as nothing. SCPA has
in fact gone mad and hit my target of 140p in four
trading days. The results were good and why I bought,
but the speed of the rise has taken me by surprise to
say the least. Although my target has been met I’ll
continue to hold and see where we go with this one.
June 3rd 2014
Avon marking time after its initial spurt. That’s fine
I’m £72 up after costs and making money slowly
which is better than losing money quickly.
June 5th 2014
When the market loves a share it can do no wrong,
when sentiment changes the opposite happens. Asos
(ASC) was a stock market darling but the rate of
growth has slowed. At one point today they fell 38%
after a negative update.
Glad I’m not in that one, the valuation was way too
high for me, I follow the lead of Robbie Burns and
don’t want to pay a penny more than a valuation of 15
times forecast earnings to market cap, and am much
more comfortable with 10 times. In other words if
the company is worth say 100 million pounds, I’m keen to
buy if forecast profits are 10 million pounds and I wouldn’t
touch it with a pole if they were only 1 million pounds.
Topped up another two thousand pounds on last month’s
buy of SFE at 205p, they have risen nicely from my entry
point of 190p but I wanted to wait until they had crossed
the round number of 200p before doing so.
June 9th 2014
Looking at forthcoming IPOs with no great enthusiasm to
be honest but something caught my eye. Cenkos (CNK)
the broker has been appointed sole co-ordinator and book
runner to the upcoming float of the AA. The management
said ‘a successful floatation would have a significant
impact on the company’s current year revenues’ their
recent update prior to that had said ‘revenues to date are
materially ahead of the same period in 2013’.
That all sounded good news to me, so I bought £2000 at
201p, initial target 235p, stop 175p.
June 10th 2014
Tristal (TSTL) a tiny company that specializes in infection
control keeps producing figures that beat the market and
their own expectations - the latest update was magic, so
I’m in for £2000 at 75.35p.
I think this one will really rock and roll, so I plan to hold for
the long term with no real target in place and a wide stop
at 58p. I’ll be looking to top up again at 85p and then again
if/when it breaks through 100p.
June 13th 2014
DTG has just lost a court case about customer
compensation and this has brought the shares down to
earth with a bump - ‘ I’m out’, the reason for being in the
trade has gone, there will be uncertainty until a Supreme
Court appeal, when the price may recover if the court rules
in its favour, but this is not a risk I want to carry.
The price fell through my stop loss unfortunately but it
could have been worse, I sold at 248p for a loss of £248.60
or 12.5%.They always say of planes that a good landing is
one you can walk away from, I walked away but I do feel a
little bit bruised.
