Saturday, 12 February 2011

Oops I did it again

I've never analysed the lyrics to Britney Spears "classic" hit - who needs to, the title says it all.

I found myself hovering over the buy button again yesterday, the early disasters of this week still in my mind. I did it again. Not quite the same but I was very aware of taking a risk with a large sum of money that I didn't want to lose.

The difference yesterday? I am already invested in the company. I bought Sound Oil (SOU) earlier in the year and quickly saw my investment drop in value over 20%. Almost every time...

But, it recovered and showed signs of justifying a long term investment. Yesterday the company released news saying they were presenting to city analysts and would release the presentation later in the day. Had I not {insert appropriate word of your choosing} so badly this week, I would have sat back and enjoyed a tick up in value.

As it was I saw an opportunity. I didn't say earlier but, to pay off my losses on PYC and SAR, I sold my favourite stock - Anglo Asian (AAZ). I had decided to sell completely out and see if there was a opportunity and Sound seemed to be worth investing in.

There was no guidance as to when the presentation would be released and no guarantee it would materially affect the value of the company but I decided it was more likely to have a positive affect than not. I invested the remaining money from Anglo Asian and bought Sound at 2.55p. Again, due to the spread I was now losing money but - it kept ticking up. The price fell back a few times during the day but unlike my experience with PYC or SAR, I had confidence in the company to hold for a year if neccessary to see a profit.

I am looking for a quick profit however. If the share price reaches 4p (taking the value of my shares back to where I was before my mistakes) I will sell out and plan to buy back into Anglo Asian.

I'm hoping this will be the last post on my investments for a while. I'm 39 today and feeling that melancholy state I get most years. A day for reflection on a year gone and considering direction for the next. My deadline of 40 is now exactly one year away which brings into sharp focus the three goals I wanted to achieve. I am looking forward to being 40. Is that odd?

1 comment:

  1. Forgive my stupidity but which three goals before next year?

    Tough gig on the share dealing, you've got some minerals laying it all out here where most people (and gamblers) would just bury it from other and also themselves. I know almost nothing about the right way to do these things, but just before our trip to Vegas I was given a bit of gambling advice in order to minimise potential losses. When you're ona bad thing, don't over-egg it, i.e. you're not likely to win it back in this round. When you're winning, pile it on. He described it as counter-intuitive, to me it's waffle really, it's not my game, and I don't know if it translates into shares. So, it isn't much, but maybe it'll give you something to think about. If I knew how it worked I'd tell you! Anywya, one thing to bear in mind, we'll crack goal 96 if I have to give you a piggy back, although you'd never hear the end of it...

    ReplyDelete