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raysor, May 16 2012, 12:40
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Started by tomashworth Feb 21 2012, 13:31
tomashworth
Junior

Posts: 12
Feb 21 2012, 13:31

Hello All,

My name is Tom, and I'm interested in investing in Shares. I am basically buying shares in various companies each month after research. I am aiming to build a larger portfolio over the next year, and then gain subsequent experience and knowledge to be able to continually improve. I'm seeing this as more or a hobby and an opportunity to learn about the markets.

So, I'm basically going to update this blog ever couple of weeks, mainly to see progression, and so I can remember when and how I started. Hopefully, this will be a good blog for other like minded beginners wanting to learn the industry.

So far I've invested a small amount of money in 5 seperate companies as follows (with dates):

15th Dec '11 - Bought 67 Shares in ITV for 62.98p each.

13th Jan '12 - Bought 243 Shares in RBS for 24.34p each.

13th Jan '12 - Bought 664 Shares in Fortune Oil for 10.88p each.

24th Jan '12 - Bought 50 Shares in BowLeven for 84.16p each.

15th Feb '12 - Bought 11641 Shares in Matra Petroleum for 0.79p each.

So far my total investment return is riding at a steady 11.19%.

All new advice / tips are welcome.

Many Thanks,

Tom

raysor
Moderator, Team

Posts: 891
Feb 21 2012, 15:20
Thanks for sharing this, Tom.
I would just say that it looks more like a collection of (hopefully) short term trades, rather than building a portfolio (nothing against that). The thing is it looks like the market is entering a bullish phase. Consensus is that the FTSE could be 6100/6200 by the second half of this year so this could be the right time to build a good, solid portfolio. Of course you can still have a bit of a dabble as well.

raysor
Moderator, Team

Posts: 891
Feb 21 2012, 15:24
Out of interest where do you trade and what is the commission charge?

tomashworth
Junior

Posts: 12
Feb 21 2012, 16:03
Hi Raysor,

Many thanks for your reply, it is as you say a collection of short term trades, which I'm building and using as trial excercises to learn the industry.

The plan is to in the first year to build a decent capital whilst learning the ropes. I thought, a diary of a complete beginner would be beneficial to other beginners starting out from new. Also, hopefully this forum will give me an avenue to learn from the help and knowledge of pther like minded people such as yourself.

Regarding the wherabouts of where I trade, I have started trading through 'The Share Centre' which charges £7.50 or 1% per transaction, and also the accompanying stamp duty. I did some research on trading sites, and came to the conclusion this is the best one for starting out on.

Out of interest, what are your thoughts regarding BowLeven. I think Dragon Oil are in a perfect place to carry out the rumoured takeover, and that my best position would be to hold the shares until the takeover has been confirmed.

i have done a little research into company takeovers, from what I can gether, the company buying out the other (Dragon Oil in this instance) would buy a percentage of shares, and offer me a price / replacement sahres in their firm. I can then still opt to hold my shares until they obtain 90% of the company in which I would be forced to sell my shares, but these would be sold at the higest price Dragon Oil have paid fro previous shares?

Sorry to natter on, but I was reading into the takeover procedures and would just like to confirm what I took from the research.

raysor
Moderator, Team

Posts: 891
Feb 21 2012, 20:34
It's an excellent idea, and thank you for taking the time. We (Shareworld) visited The Share Centre last year sometime and were very impressed by the organisation. I am sure you will be looked after. As to the Bowleven it was originally thought the take-out price would be nearer 150p but don't forget it may not go through. Bowleven have until 16th March to put up or shut up! As you say it could be a cash offer or a share offer or a bit of both. If the offer looks like going through that's it really, you more or less have to accept once it goes unconditional. The Bowleven shares would be de-listed and you would be a minority shareholder if you didn't accept which is no good. Of course the takeover may be by way of a Scheme of Arrangement so you don't get much choice. Should be a good outcome for you whatever happens!

raysor
Moderator, Team

Posts: 891
Feb 23 2012, 10:54
Bowleven: Upside 30p, downside 20p (?)

tomashworth
Junior

Posts: 12
Feb 23 2012, 14:02
Either way I'm it's positive, although I think I may hold on to see what effect the takeover rumours have on the price and see how the situation develops. I think it will be a good learning curve either way nonetheless.

raysor
Moderator, Team

Posts: 891
Feb 23 2012, 14:08
I think you should buy some more at 120p!!

tomashworth
Junior

Posts: 12
Feb 23 2012, 14:20
I think you may be right, i was thinking about investing next in Biome Technologies, I'm going to take your advice, and carry out some more research in Biome for next months potential investment.

raysor
Moderator, Team

Posts: 891
Feb 24 2012, 15:07
Hope you bought BLVN (122.75/125)
220p bid for Cove probably helping the sector.

tomashworth
Junior

Posts: 12
Feb 24 2012, 15:17
I took your educated advice yesterday and bought some tripled my shares at a price at 119.245p. Just been watching the share movement now, and the increase has started. Many Thanks for your advice.

raysor
Moderator, Team

Posts: 891
Feb 24 2012, 15:34
Beginner's luck!!

tomashworth
Junior

Posts: 12
Feb 24 2012, 15:47
Most definitely, although my other share holdings aren't looking too bad with the current return percentage.

raysor
Moderator, Team

Posts: 891
Feb 24 2012, 16:11
I meant me-beginnner's luck!
Bowleven- the major bulletin boards are talking about 210p cash and share offer.

tomashworth
Junior

Posts: 12
Feb 28 2012, 09:57

A week on, and my shares in the Oil sector are increasing at a good rate. BowLeven who are rumoured to be taken over are increasing week in week out. This should be the case until mid-March where a decision will be made whether Dragon Oil will progress to make a formal bid.

Matra Oil seems to be increasing at a very good rate, since yesterday, but as of yet I cannot find out why apart from other oil company related news.

ITV are set to release a financial report, so we shall see what that entails, and I think the report will be beneficial to the share price and I may sell if it increases to 90p a share.

RBS seems to be floating around the 27 /28p, but I feel this share is one to hold onto for a few years, as the government won't sell it back for less than what they paid, so hopefully the share price will slowly increase to the target price of 49p a share.

Fortune Oil - currently sitting at what I paid per share. I holding the shares for this company for the foreseeble.

Any news / advice welcome.

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