Tuesday, February 28, 2006
February: a month of misery
Invox results on the 9th of February were a near-disaster. Contrary to everyone's expectations, Invox announced there would be no interim dividend. Despite the already cheap stock price, the shares fell around 9% in the first few hours of trading. Seeing this as an opportunity to increase my holding, I did so, buying more at 81.5p. Unfortunately, at this stage I was getting low on cash and was unable to buy the amount I would have liked. The shares have fallen further this month to finish at an excruciating low of 70p, leaving me nursing huge losses.
My second expected gain in February failed to materialise, as SVB announced huge usage of their exceptional loss provision and an increase in the estimate of losses from Hurricane Katrina. I didn't like this news one bit and sold my entire holding at 34p. SVB disappointed in the end, it's nicer to go out on a high but the shares have given me a handsome return on my initial investments at 24.12p and 26.75p less than one year ago.
It's not all bad news. The losses have hit me hard, but I am seeing opportunities to invest elsewhere. Vodafone, the giant telecoms operator, is trading at nearly ten times forecast earnings and Samson, the Australian oil and gas explorer trades at a much lower price than the value of its assets.
At the end of February, I am 6% down on the year so far. I have hopes for March however, Fayrewood will be reporting full-year results - they are another share that is simply far too cheap.
At the end of January, 2006:
Chaucer Holdings, 06/10/2003 at 42.88p (65.5p)
SVB, 12/04/2005 at 24.12p (34.25p)
SVB, 13/09/2005 at 26.75p (34.25p)
Fayrewood, 15/04/2005 at 112.5p (110p)
Fayrewood, 19/04/2005 at 111.5p (110p)
Invox, 10/01/2006 at 93.13p (85p)
+ cash holdings
and versus today's values:
Chaucer Holdings, 06/10/2003 at 42.88p (64p)
Fayrewood, 15/04/2005 at 112.5p (111p)
Fayrewood, 19/04/2005 at 111.5p (111p)
Invox, 10/01/2006 at 93.13p (70p)
Invox, 09/02/2006 at 81.5p (70p)
+ cash holdings
I need a good March just to make a profit in Q1 2006.
The Artful Dodger
My second expected gain in February failed to materialise, as SVB announced huge usage of their exceptional loss provision and an increase in the estimate of losses from Hurricane Katrina. I didn't like this news one bit and sold my entire holding at 34p. SVB disappointed in the end, it's nicer to go out on a high but the shares have given me a handsome return on my initial investments at 24.12p and 26.75p less than one year ago.
It's not all bad news. The losses have hit me hard, but I am seeing opportunities to invest elsewhere. Vodafone, the giant telecoms operator, is trading at nearly ten times forecast earnings and Samson, the Australian oil and gas explorer trades at a much lower price than the value of its assets.
At the end of February, I am 6% down on the year so far. I have hopes for March however, Fayrewood will be reporting full-year results - they are another share that is simply far too cheap.
At the end of January, 2006:
Chaucer Holdings, 06/10/2003 at 42.88p (65.5p)
SVB, 12/04/2005 at 24.12p (34.25p)
SVB, 13/09/2005 at 26.75p (34.25p)
Fayrewood, 15/04/2005 at 112.5p (110p)
Fayrewood, 19/04/2005 at 111.5p (110p)
Invox, 10/01/2006 at 93.13p (85p)
+ cash holdings
and versus today's values:
Chaucer Holdings, 06/10/2003 at 42.88p (64p)
Fayrewood, 15/04/2005 at 112.5p (111p)
Fayrewood, 19/04/2005 at 111.5p (111p)
Invox, 10/01/2006 at 93.13p (70p)
Invox, 09/02/2006 at 81.5p (70p)
+ cash holdings
I need a good March just to make a profit in Q1 2006.
The Artful Dodger
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