4 shares and a fund purchase

It’s nearly the end of 2011 and the 2012 share tips are coming thick and fast. I am keeping an eye out for shares to buy for 2012 but, in the meantime, a few small purchases today.

Biome Technologies (BIOM)

Biome shares were tipped in Shares magazine yesterday (22/12) at 0.15p – talk about a penny share!

The problem with such a low priced share can be the bid/offer spread. For example, if the mid price is 0.15p, the sell price is 0.13p and the buy price is 0.17p then the bid/offer spread is 0.04p

Doesn’t sound much, but in percentage terms it’s over 25%!

Anyway, I managed to buy in at 0.1633p

Supergroup (SGP)

Already a holder of Supergroup, I’m well aware of how volatile this share is. Take a look at the share price chart and see for yourself.

My various purchases in the company behind the SuperDry brand have ranged from just over 800p per share to just over 1,000p
When they broke through the 1,100p barrier in September I was looking at a healthy profit, but they have since slipped below 450p and now sit around the 500p level.

Some reported warehouse problems in October (“temporary” warehousing issues which prevented stock from reaching the chain’s UK stores) hit the share price hard, but we are led to believe this was a “temporary” and “one off” problem.

It’s a brave (or stupid) investor who chooses to be in retail stocks at the moment, but favourable comments in the 23 December issue of MoneyWeek magazine was enough to prompt me to buy a few more shares in the company.

Today’s purchase at a touch over 529p resulted in my average buying price being reduced to 728.17p from 927p. Still well above the prevailing share price, but this could easily change in a heartbeat.

Ferrex (FRX)

I’m afraid I cannot remember what prompted me to purchase more Ferrex shares today (short-term memory failure!), but today’s purchase at 2.16p reduced my average buy price from 3.67p to 3.03p

Low & Bonar

Today’s purchase of Low and Bonar was simply an averaging down exercise. Previous average buying price was 66.95p which has been reduced to 51.1p with today’s purchase at 40p.

My first purchase was made back in August at 76p, so we’ve got a way to go before they get back to that level. Buy at least my various pound cost averaging purchases mean that the shares only need to rise back about the 52p for me to be in profit.

And finally, some fund purchases

I’ve got an eye on my 2011/12 stocks and shares ISA as I’m aware that April will be here before we know it and I still have to use my full ISA allowance before it’s lost forever.

The title of this blog suggests there was just one fund purchase today, but there were two actually. Although the first purchase was more units of a fund I already own, Fidelity MoneyBuilder Income (Gross). This makes up the majority of the ISA this year. I like the monthly dividend income and as they are automatically re-invested for me by Fidelity this holding is building nicely.

The JP Morgan US Equity Income fund is the Fund of the Week in today’s MoneyWeek magazine. I don’t have much direct exposure to US stocks at the moment so now seemed as good a time as any to buy into this fund. According to the Fidelity information on this fund, the fund objective is “to provide a portfolio designed to achieve income by investing primarily in US equities in any economic sector whilst participating in long term capital growth”

Top long positions at the moment are:

  • Pfizer Inc
  • Chevron Corp
  • Wells Fargo & Co
  • Merck & Co Inc
  • ConocoPhillips
  • Johnson & Johnson
  • PPG Industries, Inc.
  • T. Rowe Price Group
  • Verizon Communications Inc
  • Exxon Mobil Corporation
The fund comes in both income and accumulation variants, I bought some of each.
I have chosen to have the income automatically re-invesed in more income units, while the accumulation units “accumulate” income back into the unit price of course.
My Amateur Investor brain tells me this should mean the overall value of the two holdings to be the same. Buying equal amounts (in monetary terms) will test this theory. I just wonder if this will be the case?
And finally (again)…
This will probably be my last post before Christmas, so I’ll take this opportunity to wish you all a Merry Christmas.

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