After taking some advice from a mate in the City, I'm re-jigging this posting and just confirming the numbers.
Now that the dust has settled, and OPAY has been resumed trading on the markets, the share price has settled down to approx 565 per share. That means my OPAY shares are worth £22,600.
My overall SIPP value stands at £89,170 including cash of £3,943.30
Where I go from here with OPAY, I'm not too sure.
To take up the rights issue - 5 new shares for each of my 3 existing shares - I will have to find another £11,332 plus dealing costs (if any). I'm entitled to 6,666 new shares at £1.67 each.
What I may do is sell off part of my options to the rights issue to finance exercising part of it.
Should I exercise the option, I'd have 10,666 shares worth approx (£22,600 plus £11,332) £33,932
This implies a share price on Day-1 (post rights issue) of £3.18 approx.
This takes no account of any "market approval" of the rights issue, but there may (or may not) be an uplift on Day-1.
If I do not exercise the option, but decide to sell it, then I should be able to sell the option to the rights issue at £1.51 per (new) share - this is £3.18 less the option price of £1.67. That will give me approx, £10,000 in cash, and I will retain my 4000 shareholding which will be worth (at £3.18 a share) approx £12,720. Note: £10,000 + £12,720 is approximately equal to the current value of the shares which is £22,600.
I have a couple of weeks to ponder this over, and decide whether to take:-
1) the £10,000 in cash (this seems to be the simplest option);
2) finance the rights-issue either in part;
3) finance the rights-issue in full;
4) Post rights-issue: whether to hold-on for a few weeks or sell-off a major portion and rebalance my portfolio.
Wednesday, 25 March 2015
Monday, 23 March 2015
OPAY seeking reverse takeover entry into FTSE250
Tremendous news this morning regarding the largest shareholding in the SIPP, as OPAY announce record annual figures for the year ending 31st December 2014, and the intention to purchase financial services company Skrill.
This is very exciting news as the combined company could have a share value of 660+ (close on Friday 20th March was 418) and cost savings plus the enhancement brought about by an entry into the FTSE250 for the enlarged group has seen forecasts this morning of a potential share value of 900+. Considering my initial purchase back in March 2012 was at 165, and I've been adding to that with my latest purchase at 307, my current holding of 4000 units is looking good.
Must admit, I thought the company was ripe for a takeover bid, but never thought the company would try and grow exponentially with a reverse takeover and move from AIM into the FTSE250.
Overall, my SIPP has been looking very positive since the turn of the year.
I've been reviewing it more recently, with some additions to the Investment Trusts.
Despite my success with some of my AIM purchases (see OPAY above), some of my stock-picking has been a bit haphazard, and so I've decided to gradually phase out those companies who have a market value of under £300 million from my SIPP. To replace them, I've decided to invest in an IT that specialises in companies of that value: namely BlackRock Smaller Companies Trust (BRSC). I've started off with a purchase equivalent to 2% of the SIPP value and acquired 202 shares, and intend to increase this shareholding by the equivalent of 1% of the SIPP value per-month during the remainder of 2015, until it reaches an initial maximum of 10% of the SIPP value.
I recently decided to reverse my decision to invest in the smaller companies of the US and I've sold-off my entire holding of 500 shares in the Jupiter US Smaller Companies IT (JUS) and transfer that into my holding of Fidelity Asian Values (FAS), making the total holding 1,990 shares. I feel more positive about growth in the Asian markets than I do about the North American markets. And I also feel the same about Emerging Markets, and my holding in the JPMorgan Emerging Markets IT (JMG) has done well in recent months, so I've topped-up my holding there to 860 shares.
I've doubled my holding in GVC Holdings plc (GVC) to 500 shares as I think this company which operates in internet gambling, has potential to grow significantly. For the same reason, I have also more than doubled my shareholding in Hill & Smith Holdings (HILS) to 375 shares.
Lancashire Holdings (LRE) is a specialist insurance company, and is a tremendous cash generator. Although declared annual dividends are at about 1.80% pa, the company has a history of exceptional special dividends. As such, to take advantage of this I have increased my shareholding to 1000 shares (from 200).
I have also recently doubled my holding in Premier Foods (PFD) on the premise that they could be due a significant re-rating as they traded at 80+ for much of 2013 (current share price is 44). The transition in supermarkets from large out-of-town shopping centres to smaller local units means that shops have to focus on a limited number of products (due to lack of shelf space and storage) and should (in theory) favour the larger brands, and that will be good for Premier Foods in the long-run.
Finally, I have trimmed my holding in Telit Communications from 1250 shares to 400 shares as I felt this company was too specialist for my portfolio. I feel similarly about the shareholding in XChanging but, as I'm currently sitting on a large paper loss, I'm waiting for an upturn to sell into.
This is very exciting news as the combined company could have a share value of 660+ (close on Friday 20th March was 418) and cost savings plus the enhancement brought about by an entry into the FTSE250 for the enlarged group has seen forecasts this morning of a potential share value of 900+. Considering my initial purchase back in March 2012 was at 165, and I've been adding to that with my latest purchase at 307, my current holding of 4000 units is looking good.
Must admit, I thought the company was ripe for a takeover bid, but never thought the company would try and grow exponentially with a reverse takeover and move from AIM into the FTSE250.
Overall, my SIPP has been looking very positive since the turn of the year.
I've been reviewing it more recently, with some additions to the Investment Trusts.
Despite my success with some of my AIM purchases (see OPAY above), some of my stock-picking has been a bit haphazard, and so I've decided to gradually phase out those companies who have a market value of under £300 million from my SIPP. To replace them, I've decided to invest in an IT that specialises in companies of that value: namely BlackRock Smaller Companies Trust (BRSC). I've started off with a purchase equivalent to 2% of the SIPP value and acquired 202 shares, and intend to increase this shareholding by the equivalent of 1% of the SIPP value per-month during the remainder of 2015, until it reaches an initial maximum of 10% of the SIPP value.
I recently decided to reverse my decision to invest in the smaller companies of the US and I've sold-off my entire holding of 500 shares in the Jupiter US Smaller Companies IT (JUS) and transfer that into my holding of Fidelity Asian Values (FAS), making the total holding 1,990 shares. I feel more positive about growth in the Asian markets than I do about the North American markets. And I also feel the same about Emerging Markets, and my holding in the JPMorgan Emerging Markets IT (JMG) has done well in recent months, so I've topped-up my holding there to 860 shares.
I've doubled my holding in GVC Holdings plc (GVC) to 500 shares as I think this company which operates in internet gambling, has potential to grow significantly. For the same reason, I have also more than doubled my shareholding in Hill & Smith Holdings (HILS) to 375 shares.
Lancashire Holdings (LRE) is a specialist insurance company, and is a tremendous cash generator. Although declared annual dividends are at about 1.80% pa, the company has a history of exceptional special dividends. As such, to take advantage of this I have increased my shareholding to 1000 shares (from 200).
I have also recently doubled my holding in Premier Foods (PFD) on the premise that they could be due a significant re-rating as they traded at 80+ for much of 2013 (current share price is 44). The transition in supermarkets from large out-of-town shopping centres to smaller local units means that shops have to focus on a limited number of products (due to lack of shelf space and storage) and should (in theory) favour the larger brands, and that will be good for Premier Foods in the long-run.
Finally, I have trimmed my holding in Telit Communications from 1250 shares to 400 shares as I felt this company was too specialist for my portfolio. I feel similarly about the shareholding in XChanging but, as I'm currently sitting on a large paper loss, I'm waiting for an upturn to sell into.
Tuesday, 3 February 2015
Update on the SIPP
When I first started writing the "Pension Builder" blog, I was buying and selling a great deal of shareholdings in individual companies. The period showed a fantastic opening performance due mainly to some good stock-picking. Buying and selling also incurs a fair amount of trading costs and, in an attempt to reduce those costs, I reduced trades by buying better quality and more researched companies.
The last 12 months has suggested that - perhaps - that policy wasn't right for me. It may well work for others, but it wasn't working for me. I think that's because I am not in a position to be able to put in the research required to make it work. I think I'm better using a "scatter-gun" approach whereby (hopefully) most of the share purchases grow, and some grown spectacularly.
As such, those who read this blog will be aware that I've been increasing the number of individual companies in which I have a shareholding with my SIPP.
1) Fidelity Asian Values IT (FAS) : 1337 shares
2) GVC Holdings (GVC) : 250 shares
3) GlaxoSmithKline (GSK) : 620 shares
4) Hill & Smith Holdings (HILS) : 180 shares
5) International Personal Finance (IPF) : 2000 shares
6) JPMorgan Emerging Markets IT (JMG) : 600 shares
7) Jupiter US Smaller Companies IT (JUS) : 500 shares
8) Lancashire Holdings (LRE) : 200 shares
9) Lavendon (LVD) : 1400 shares
10) Meggitt (MGGT) : 450 shares
11) Optimal Payments (OPAY) : 4000 shares
12) Premier Foods (PFD) : 2500 shares
13) Scapa Group (SCPA) : 2080 shares
14) Segro (SGRO) : 900 shares
15) Standard Chartered Bank (STAN) : 280 shares
16) Telit Communications (TCM) : 1250 shares
17) XChanging (XCH) : 3000 shares
Cash £7,514.92
The larger shareholdings - OPAY and IPF - I am intending to reduce significantly when the opportunity arises.
With OPAY, my intention is to sell-off 25% of my holding (1000 shares) at about 405-410. For IPF, the sell-off will happen when the share price is around 540-550 when I will dispose of about 50% of the shareholding.
You will notice I have increased my shareholdings in companies like TCM, XCH, STAN, LVD, and MGGT.
Overall, I'm looking for opportunities to expand into growing and undervalued companies as I want to hit my 20% target for annual growth in 2015 as soon as possible.
Total SIPP Value (as at 3rd Feb 2015) £77,245 including cash.
The last 12 months has suggested that - perhaps - that policy wasn't right for me. It may well work for others, but it wasn't working for me. I think that's because I am not in a position to be able to put in the research required to make it work. I think I'm better using a "scatter-gun" approach whereby (hopefully) most of the share purchases grow, and some grown spectacularly.
As such, those who read this blog will be aware that I've been increasing the number of individual companies in which I have a shareholding with my SIPP.
1) Fidelity Asian Values IT (FAS) : 1337 shares
2) GVC Holdings (GVC) : 250 shares
3) GlaxoSmithKline (GSK) : 620 shares
4) Hill & Smith Holdings (HILS) : 180 shares
5) International Personal Finance (IPF) : 2000 shares
6) JPMorgan Emerging Markets IT (JMG) : 600 shares
7) Jupiter US Smaller Companies IT (JUS) : 500 shares
8) Lancashire Holdings (LRE) : 200 shares
9) Lavendon (LVD) : 1400 shares
10) Meggitt (MGGT) : 450 shares
11) Optimal Payments (OPAY) : 4000 shares
12) Premier Foods (PFD) : 2500 shares
13) Scapa Group (SCPA) : 2080 shares
14) Segro (SGRO) : 900 shares
15) Standard Chartered Bank (STAN) : 280 shares
16) Telit Communications (TCM) : 1250 shares
17) XChanging (XCH) : 3000 shares
Cash £7,514.92
The larger shareholdings - OPAY and IPF - I am intending to reduce significantly when the opportunity arises.
With OPAY, my intention is to sell-off 25% of my holding (1000 shares) at about 405-410. For IPF, the sell-off will happen when the share price is around 540-550 when I will dispose of about 50% of the shareholding.
You will notice I have increased my shareholdings in companies like TCM, XCH, STAN, LVD, and MGGT.
Overall, I'm looking for opportunities to expand into growing and undervalued companies as I want to hit my 20% target for annual growth in 2015 as soon as possible.
Total SIPP Value (as at 3rd Feb 2015) £77,245 including cash.
Monday, 26 January 2015
Profits taken on Booker Group
After a good run, I’ve decided to take a substantial profit
on Booker Group (BOK) and sell-off my entire holding. The dividend potential
wasn’t great, and my opinion is there is not much more growth (if any) to come
in the short term, bar keeping pace with the market.
Another sale has been Segro (SGRO) which is just off it’s
52-week high of 414, and I’ve decided to trim my holding down to 900 shares and
bank some profits.
New additions to the SIPP portfolio are:-
GVC Holdings (GVC)
which includes Sportingbet amongst its portfolio of assets. The company looks
set for a re-rating as profits are rising and the dividend yield is over 8%.
Lavendon Group (LVD)
is a supplier of construction equipment which is growing in market share in the
Middle East. Presumably, because of the slide in oil price, this share has also
slid from 247 down to 160-170 where is appears to be holding. With a good
Annual Report expected, this share could be set for a significant short-term
re-rating.
Overall, the SIPP portfolio is looking fairly healthy with a
current value of £76,760 of which £15,691 is in cash thanks to the sale of the
Booker Group shareholding.
With the gamble of a unbelievably large cash injection into
the EU countries by Mario Draghi, and the Greek election result which should
see a renegotiation of the austerity measures holding back the European
economies, I’m hopeful that economies will spring to life in the coming months.
Thursday, 8 January 2015
End of year report for 2014
The value of the SIPP at the time of writing is £75,780 which is well down on my target for 31st December 2014 of £86,000 - but it is still up £5,380 for the year. If we take away the 12 monthly contributions of £300, and we are left with "growth" of just £1,780, or just 2.50%.
Currently, the SIPP portfolio consists of:-
Booker (BOK) : 4,500 shares valued at £7,080 (approx)
Fidelity Asian Values IT (FAS) : 1,337 shares valued at £3,250
GlaxoSmithKline (GSK) : 620 share valued at £8,800
International Personal Finance (IPF) : 2,000 shares valued at £8,700
JPMorgan Emerging Markets IT (JMG) : 600 shares valued at £3,600
Jupiter US Smaller Companies IT (JUS) : 500 shares valued at £3,400
Optimal Payments (OPAY) : 4000 shares valued at £13,950
Scapa Group (SCPA) : 2,080 shares valued at £2,740
Segro (SGRO) : 1,140 shares valued at £4,440
Telit Communications (TCM) : 850 shares valued at £1,900
XChanging (XCH) : 1,740 shares valued at £2,670
That balance is cash of £15,183.86
Currently, the SIPP portfolio consists of:-
Booker (BOK) : 4,500 shares valued at £7,080 (approx)
Fidelity Asian Values IT (FAS) : 1,337 shares valued at £3,250
GlaxoSmithKline (GSK) : 620 share valued at £8,800
International Personal Finance (IPF) : 2,000 shares valued at £8,700
JPMorgan Emerging Markets IT (JMG) : 600 shares valued at £3,600
Jupiter US Smaller Companies IT (JUS) : 500 shares valued at £3,400
Optimal Payments (OPAY) : 4000 shares valued at £13,950
Scapa Group (SCPA) : 2,080 shares valued at £2,740
Segro (SGRO) : 1,140 shares valued at £4,440
Telit Communications (TCM) : 850 shares valued at £1,900
XChanging (XCH) : 1,740 shares valued at £2,670
That balance is cash of £15,183.86
Monday, 15 December 2014
Coming-up to the year end
The past few months have been "dodgy" for the SIPP, and this week one of my shareholdings has fallen off the cliff!
The current holdings are as follows:
Investment Trusts
Fidelity Asian Values IT (FAS): 1337 shares
JPMorgan Emerging Markets IT (JMG): 600 shares
Jupiter US Smaller Co IT (JUS): 500 shares
Individual Companies
Booker Group (BOK): 4500 shares
GlaxoSmithKline (GSK): 620 shares
International Personal Finance (IPF): 2000 shares
Optimal Payments (OPAY): 3500 shares
Scapa Group (SCPA): 2080 shares
Segro (SGRO): 1140 shares
Telit Communications (TCM): 850 shares
XChanging (XCH): 1740 shares
Cash: £16,315.46
Current Value (15th December 2014) = £72,500 (approx)
As I started the year with the SIPP at a value of £70,400 and I've added £3,600 to it in direct monthly contributions AND £1,295.88 in dividends, the performance this year has been disappointing.
The portfolio has taken a few big hits in recent weeks, the worst of them being in the past week with OPAY dropping to under 320 today (from a high of 550 in mid-September). I just don't know what the issues are with this share as the 4 broker forecasts are all suggesting a value greater than 600. Add to that the comments of Joel Leonoff, President & CEO on 17th November 2014: “We are finishing 2014 stronger and more diversified and, as a result, increasingly confident in the outlook for the accretive organic and inorganic growth opportunities available to us."
IPF is another shareholding in the SIPP that has been having a poor time on the markets with no obvious reason to explain it. The share value has slumped from 630 in early-June to under 440 now - yet the company is expecting to declare full year results showing increased profits up 20% on last year. The company looks stronger now than it did 6-months ago when the share price was 50% greater.
These companies both look strong: they both hold unique positions in their relative fields and I can only think that it is just a matter of time before the markets recognise this and the share price is driven higher.
The current holdings are as follows:
Investment Trusts
Fidelity Asian Values IT (FAS): 1337 shares
JPMorgan Emerging Markets IT (JMG): 600 shares
Jupiter US Smaller Co IT (JUS): 500 shares
Individual Companies
Booker Group (BOK): 4500 shares
GlaxoSmithKline (GSK): 620 shares
International Personal Finance (IPF): 2000 shares
Optimal Payments (OPAY): 3500 shares
Scapa Group (SCPA): 2080 shares
Segro (SGRO): 1140 shares
Telit Communications (TCM): 850 shares
XChanging (XCH): 1740 shares
Cash: £16,315.46
Current Value (15th December 2014) = £72,500 (approx)
As I started the year with the SIPP at a value of £70,400 and I've added £3,600 to it in direct monthly contributions AND £1,295.88 in dividends, the performance this year has been disappointing.
The portfolio has taken a few big hits in recent weeks, the worst of them being in the past week with OPAY dropping to under 320 today (from a high of 550 in mid-September). I just don't know what the issues are with this share as the 4 broker forecasts are all suggesting a value greater than 600. Add to that the comments of Joel Leonoff, President & CEO on 17th November 2014: “We are finishing 2014 stronger and more diversified and, as a result, increasingly confident in the outlook for the accretive organic and inorganic growth opportunities available to us."
IPF is another shareholding in the SIPP that has been having a poor time on the markets with no obvious reason to explain it. The share value has slumped from 630 in early-June to under 440 now - yet the company is expecting to declare full year results showing increased profits up 20% on last year. The company looks stronger now than it did 6-months ago when the share price was 50% greater.
These companies both look strong: they both hold unique positions in their relative fields and I can only think that it is just a matter of time before the markets recognise this and the share price is driven higher.
Tuesday, 25 November 2014
Another bid "hit" for the SIPP - Friends Life to AVIVA
The SIPP has managed to find another company that has become a bid target - Friends Life Group (FLG) is subject to interest from AVIVA valuing the company in the region of 370-400.
Between June and October this year, I've purchased 2900 shares in Friends Life (FLG) at a cost of £9,005.35, or 310 per share (on average).
This afternoon, I've sold off the entire holding of 2900 shares and recovered £10,671.40 after commission and fees which has realised a profit of £1,666.05 or 18%.
I can't see a further increase in the offer coming up as much of the "press" comment hasn't been in favour of a merger of the companies and, if the bid collapses, it is likely to have an adverse affect on Friend Life. I'm a "bird-in-the-hand" man, and 18% profit in a few months looks like good business to me.
This has provided me with a significant cash balance of £15,975 which will allow me to take advantage of any reduced prices in the companies in which I already hold shareholdings; or other buying opportunities.
Of my shareholdings in:-
Booker Group (BOK) purchased at an average cost of 124 per share, continues to grow in value and today stands at 145 per share.
GlaxoSmithKline plc (GSK) purchased at an average cost of 1406 per share, also continues to grow in value and today stands at 1467 per share.
Between June and October this year, I've purchased 2900 shares in Friends Life (FLG) at a cost of £9,005.35, or 310 per share (on average).
This afternoon, I've sold off the entire holding of 2900 shares and recovered £10,671.40 after commission and fees which has realised a profit of £1,666.05 or 18%.
I can't see a further increase in the offer coming up as much of the "press" comment hasn't been in favour of a merger of the companies and, if the bid collapses, it is likely to have an adverse affect on Friend Life. I'm a "bird-in-the-hand" man, and 18% profit in a few months looks like good business to me.
This has provided me with a significant cash balance of £15,975 which will allow me to take advantage of any reduced prices in the companies in which I already hold shareholdings; or other buying opportunities.
Of my shareholdings in:-
Booker Group (BOK) purchased at an average cost of 124 per share, continues to grow in value and today stands at 145 per share.
GlaxoSmithKline plc (GSK) purchased at an average cost of 1406 per share, also continues to grow in value and today stands at 1467 per share.
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