There has been a bit of movement within my SIPP since I last updated my shareholdings last September.
I have increased my shareholding in Blackrock World Mining IT (£BRWM) to 1310 shares worth approximately £6,100. These were purchased at an average price of 468.20 and I'm hoping once the world economy starts to grow out of recession that these shares will increase significantly in value. Mining stocks are generally depressed so any increased demand should trigger a movement.
The international bank HSBC Holdings (£HSBA) has has a bumpy ride these past few months, despite most commentators suggesting the share has the potential for significant gains. I have bought again on the lows (another 480 shares at 657 on 10th December) and my shareholding has now cost me an average of 697 per share. My plan is to reduce the shareholding to 1500 shares once the price breaks the 700 level.
Not all life is rosy, two of my shareholdings have recently come unstuck. Imagination Technologies Group (£IMG) dropped sharply in value on 11th December after a warning issued by the company that shipments would be lower than anticipated. My opinion was the reaction was overdone, and so I doubled my shareholding to 3000 shares. I think this company has potential to exploit any economic recovery and I'm in for the long-haul. Even so, having lost £1,400+ of my original investment of £7,037 it may be some time before I see profits again.
Another company which has had a recent problem is International Personal Finance (£IPF). I was very hopeful that this company would have a great 2014 but, unfortunately, as a result of a significant financial "fine" in Poland on Christmas Eve the share price dropped sharply. This correction was not due to the level of the fine, which was £2.40 million, but that interest rate levels in Poland could be capped as a result. The business model seems solid, so this setback should only be temporary, and so I increased my shareholding by another 300 shares at a cost of 500 per share. As they are 520 today (was 536 yesterday), that seems to have been a good move; altho' this share price is unstable.
I have built-up a small holding in the Herald Investment Trust (£HRI) in response to selling my shareholding in £AZEM. This is another long-term holding which is currently treading water.
My other 3 shares have all done exceptionally well.
Aberforth Smaller Companies Trust (£ASL) which was my first share purchase for the SIPP (oh, how I wish I'd made a larger investment now) is at 1095 which considering I bought at an average of 620 is a phenomenal return over the past 16 months; 76%. If I'd put my whole SIPP fund into only this share at the outset, my £51,684 would have grown to almost £91,000 by today! Smaller companies are where the major recovery in values will come from in 2014.
JPMorgan Mid Cap Investment Trust (£JMF) has also made a significant improvement in value. I started buying shares in this investment trust in July 2013 at about 668 and today the share price is at 780; which is an increase in value of nearly 17%.
Finally, the jewel in the crown is Optimal Payments (£OPAY). My initial purchase in this company was way back in March 2013 at an average of 168. I added a further 1970 shares at 191 thru' the summer of 2013. and another 1000 at 302 in October after a set of brilliant results. Currently at 351, I can see this share continuing to grow in stature as it exploits internet finance and builds a plateform for the coming "cashless" society. With a market capitalisation of only £530 million this company looks ripe for a takeover bid from one of the big banks.
With the SIPP now valued at £70,000 my pension fund target for 31st December 2014 is £86,000.
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