Author Archives: shauniekent

Capital Drilling – CAPD – BUY

December 13th, 2012 | Posted by shauniekent in My positions | Oppurtunity - (0 Comments)

I’ve bought some capital drilling this morning after Centamin CEY suspended operatinos in Egypt. CAPD do provide services to CEY but they also have many other customers. The drop of 40% seems well overdone. Admittedly this is only a quick glance but the company seems profitable, has varied customers and i expect some sot of share price recovery sooner rather than later. Additionally we do not know the cost, if any from suspended work for CEY in Egypt. My guess would be that CEY will still have to pay some sort of fees to CAPD.

In at 16.19p

Remember these are all personal best guesses with my own money. Hopefully this website will show how profitable investing has been for me. But of course it might just show the opposite :-/

PVCS – PV Crystalox Solar – BUY!

December 13th, 2012 | Posted by shauniekent in My positions | Oppurtunity - (0 Comments)

Statement out today that indeed they plan to return cash to shareholders.

Restructuring, job losses, planning to be cash neutral next year all make me bullish about significant cash return. I have topped up on the fall, which i am very surprised about. Investors taking profits and knee jerk reactions to the loss for the year which is farily unimportant. This is a cash and assets play, ideally for shareholders the company would cease trading and liquidate.

http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail.html?announcementId=11427622

Nostra Terra Oil – NTOG – Punt

December 11th, 2012 | Posted by shauniekent in My positions | Oppurtunity - (0 Comments)

I bought in to Nostra Terra on a punt today at 0.45p. Naughty i know but a well known private investor was tipping on twitter and after a cursory review of the investment case i jumped in. Essentially they had positive well results today and are expecting expecting well results for nearby drills very soon (next month). NTOG have a higher stake in nearby drills. If there is read across then the nearby drills will be successful and this will be a strong catalyst.

Buying miners – Snappy Intro Series

November 30th, 2012 | Posted by shauniekent in Uncategorized - (0 Comments)

Buying miners

What i’ve learnt

  • Firstly, help yourself to a large dose of scepticism. Seriously. Small mining companies and explorers seem to constantly over exaggerate potential, timescales and underestimate costs. This leads to the market being dissapointed and confidence in the company reduced. It also leads to cost over runs, running out of cash and having to refinance/take on debt/issue more shares – all bad news for shareholders.
  •  Explorers are speculative, with timescales being in years before a mine goes through all the required tests and gains the required permissions.
  • There are mega caps like Rio Tinto (more correlated to global output/need for raw materials)and there are of course tiddlers with perhaps one mine somewhere they are pinning their hopes on.
  • Miners are correlated with commodity prices. if the company mines copper, then expect its share price to correlate to the price of copper over time.
  • Finally i have found some interesting looking miners, only to later discover some complex and confusing financial arrangements that exist where profit or assets are shared/split/part owned by another entity. Far too confusing for anyone other than an expert and often the financial arrangements may be hidden in RNS stories from way back.

There is an interesting article over on Investors Chronicle about mining companies and how such a small % are successful.

In summary, i’d have to have some very compelling reasons to invest in small miners. Hopefully i’ve dampened any mining risk taking tendencies you may have – just as i did(do!). It’s far to had to judge the risks and potential rewards unless you are experienced in this sector. My only mining position ever is Frontier Mining who i believe are priced cheaply due to poor expectations management/communication with shareholders. They are just starting to produce and i’m hoping i bought in on a low with plenty of upside as they increase (hopefully) production. I couldn’t find any nasties lurking but you never know…

I have been interested in shares and investments for a couple of years now. I have learnt a tremendous amount but am still fresh enough to remember the ignorance of my beginnings and the biases I unknowingly held. That’s not to say I’m free from bias, but certainly less so.

I want to set out a series of posts on different sectors of the market and summarise what I’ve learnt from my own experiences and from what I’ve read on the web. I hope they are succinct, snappy and mostly an accurate assessment .
I’ll be starting with mining companies…

PVCS – PV Crystalox Solar – BUY!

November 28th, 2012 | Posted by shauniekent in Dividend | My positions | Oppurtunity - (0 Comments)

I’ve bought £500 at 9.1p. I was looking to buy when they were at just over 8p but dithered and missed my possible entry point by a penny! Their recent interim management statement hints at a return of cash to shareholders. I’ve writtenabout this company before and their massive cash pile. They have been crippled by low prices for their products and their strategy was to conserve cash, cut costs and limp along until prices picked up, perhaps in a few years time. The latest statement shows a marked change of tone: http://www.pvcrystalox.com/scripts/php/rns_viewer.php?id=20506230

 

“The Group has a strong net cash balance and the Board is continuing to reorganise the Group, to enable the return of cash to shareholders.  The Board expects to make a further announcement before the year end. ”

Briliant news and an expected catalyst by year end for share price movement (year year or financial year i wonder). Best case scenario for shareholders is a winding up of the busniess and redistribution of all cash – worth twice the current share price. Worst case, who knows, but just 20% giveaway could be 3.5p.