How time flies! It has been almost two months since I last blogged! Lots of investing activities since I last blogged in April. Ideally I should be updating the blog each time I make a transaction (whether it is a buy or a sell) but unfortunately my work commitments and extra-curricular activities prevent me from doing so!
I will outline all the transactions made to date below along with the rationale behind each one:
OPAY – An online payment company which has been growing/expanding fast over the years. There was a placing earlier on this year to fund new acquisition – Skrill. This, for me, is something I believe will become more established once it moves into FTSE250 in September. Currently it lists under FTSE AIM which is not exactly known for robust regulation.
It seems I may have bought into it a bit too early, having bought at 297p. So I am currently under water with this investment (-11%) but I am convinced it will eventually come good – patience is needed.
During this week, Apple has announced ‘Apple Pay’ for UK later on this year. This is particularly good for OPAY given it provides support to merchandisers (businesses) to set up their system to accept Apple Pay. So I am hoping this will mean the share going back up to the 300p mark and beyond!
TSTL – This share fared well over the last couple of months reaching more than 90p in value. I thought it was now fairly priced in and decided to sell for a 30% gain which is quite substantial. I expect this share to retreat back to 80p-85p range and so may buy back in. This company is targeting an entry in the US – subject to approval of its products by the FDA. When this comes, I will definitely be on the lookout for buy-ins.
TRI – Another share I have since sold, albeit for a 20% gain. However, given its performance during this week it seems my move is a bit pre-mature as it has proceeded beyond the 120p level. Well, a profit is a profit especially when banked! Its results are out this Tuesday so I will be keeping an eye but it would not surprise me if it proceeds further up north, my loss!
XLM – An Israeli company specialising in advertising/signposting gamblers to various gambling websites. Revenues have been increasing over the years and profits are shooting up. Debt free! The share price was around 75p-80p during end of April but has since retreated back to 55p. I have grabbed a few at 58p and expect the share to return back to 70p in the near future thus banking a 20% gain.
Given it lists under AIM, there is a bit of risk attached particularly when it is a foreign company but I think the risk:reward ratio is in my favour. We will see!
EHG – Interesting company as it was recently listed on the stock market. It is a five hotels operator based at Barbados. The target audience is holiday goers with lots of money – doubt I can afford a stay myself! Some of the funds raised by listing have gone into reducing the debt level to a more reasonable level at around 20%. The management has extensive experience of managing the hotels and performance in the last few years look quite impressive. It even comes with a 7% yield but with appropriate dividend cover (sufficient level to cover dividends) so I expect a re-rating by at least 10%. Prior to buying the shares, I came across this research note which shows lots of useful information. You can find the note at HERE.
TTR – This is one share I have been following for quite a while now. It was first reported by Simon Thompson from IC who I rate quite highly. A gambling company based at Gibraltar – the results reported back in March are quite impressive. But even more so was the fact that the first three months are 35% ahead of the prior year.
The main reason for the uncertainties experienced by the share price is the increased regulation in the UK (where most of the revenues come from) and the newly introduced POC (point of consumption) tax. However, the company has kept stating that it will not have any significant detrimental to the bottom line. So that’s the risk attached to the share price. It was trading as high as around 70p last month so I am hoping for a re-tracing back to the recent highs soon. I have bought a few at just under 58p. A big of patience might be needed here until the next trading update – expected to be in July.
Rest of portfolio – is performing quite well with the exception of OPAY (as mentioned above). INL is up by almost 12% – this still has further to go. RGS is up by 12% as well – am pondering selling this but will give it some time. It tends to go down on results/update news so may sell beforehand. Both TCM and UTW are up around 30% – plenty to go in my opinion so will be holding onto these for the foreseeable future.
That’s all folks! I will do my best to update on a regular basis. Have a nice week y’all.