SIPP PROGRESS

Current Value (As at 20th December 2017) = £156,280 including cash
Target for 8th November 2018 = £186,000
Value at commencement of this blog on 1st August 2012 = £51,684.02.
Monthly contributions since commencement of blog = 36mths @ £300 plus 28 months @ £750 = £31,800
Capital Growth = £156,280 less (£51,684.02 + £31,800) = £72,796+

Tuesday, 2 January 2018

Just for the record

As of 10am this morning, the value of the SIPP was:-

Equities = £142,350.00
Cash =        £16,865.00     Total = £159,215.00

The value of the ISA was:-

Equities = £84,228.00
Cash =      £ 3,170.00     Total = £87,398.00

Value as at 8th November 2017 = £153,000
Target growth at 15%pa = £22,950 (£153,000 x 15%)
Contributions in year: 12 @ £750 = £9,000
Growth on contributions:
£9,000 / 2 = £4,500 @ 15% = £675

£153,000  + £22,950 + £9,000 + £675 = £185,625
Say, Target for 8th November 2018 = £186,000

As usual at this time of year, I'm on the lookout for new investments to invigorate the portfolio - and I hope to advise readers of the blog of those new investments with my next posting.

Wednesday, 20 December 2017

Portfolio Review 20th December 2017

My target value for the SIPP for 8th November 2017 (my birthday) was £153,000 (see my blog of 4th April 2017) - and for the first time in a few years, the target was met and beaten. As of today, the value of the SIPP is just over £156,000.

It has been a brilliant year for the SIPP, as this time last year the overall value was about £115,000 and since then I have only made contributions of £9,000 - so "growth" has been £32,000 or over 27% of the value of the SIPP at the start of the year. It's is not an accurate calculation, but a simple enough calculation of growth that's easy to understand. The main thing is that I use the same method of calculation every year, as consistency is the key.

My target was £153,000 and at one point the SIPP was going so well that I revised the target to an end-of-year value of £170,000.  Unfortunately, the momentum could not be maintained (although had I stuck to my original plan I would have hit the revised target value - see below), but £156,000 is a fantastic result.

It has not all been good news, as I've made a few mistakes along the way - not least selling my Bitcoin holdings (equivalent of 5 coins bought at an average of US$2400) at US$6900. While I was telling everyone else to buy and hold, I thought I knew better - sold on a dip hoping to buy-back in at a lower level, missed the "bounce" and didn't have the guts to admit I called it wrong and buy back in at a higher level than I sold out at. As such, I have basically missed out on US$50,000 (about £37,000).

The target value for the SIPP for 8th November 2018 is £186,000 calculated as follows:-
Target for 8th November 2017 = £153,000
Growth @ 15% pa = £22,950
Contributions: 12 @ £750 = £9,000
Growth on contributions 7.5% = £675
Total = £185,625

BAE Systems PLC (BA.) Holding = 1,404 shares
Since my last update, the share price (SP) is about 10% down at 560, which is very disappointing as I was expecting a recovery in the SP to a level of 660+.  Why? Because the company retains a large forward order book, and this has even increased since my last posting with a massive order for “Typhoon” aircraft.  The USA are (apparently) on the verge of sanctioning an enormous increase in defence spending so, it would seem to me, demand for the company products should increase and with it company profits. I remain a holder, but the situation is under review as with the SP weakness there is something going on that I am unaware of.

Bango PLC (BGO) Holding = 4,600 shares
A new holding for the SIPP. I’ve built up a holding worth about £10,500 at an SP of 233. This is going to be a long-term hold. The company has a market value of only £150million and so the SP can vary considerably due to the low volume of transactions.  

Blackrock Smaller Companies Trust (BRSC) Holding = 1,181 shares
One of my “foundation” investment trusts which forms the bedrock of the SIPP.  Represents about 10% of the SIPP value. A long-term hold.

G4S PLC (GFS) Holding = 3,313 shares
The SP has dropped again into the 255-260 range (from 276-286) since my last posting.  The fundamentals of the company are sound. Revenue is growing, and so are profits, and the dividend is being maintained. This should be a buying opportunity – it was when the SP was at this level at this time last year, and there was a surge in the SP value to 325+ in June/July.  I remain a holder and I’m intending on increasing my holding by over 1000 shares to approximately 7.50% of the value of the SIPP. I’m expecting another surge in the SP in the early part of 2018 and (this time) I will be selling-off when the SP breaks 300.

GVC Holdings PLC (GVC) Holding = 1,047
On of the success stories of the SIPP.  GVC has remained on track and very profitable. Revenue is growing very quickly and all broker forecasts are being met.  The proposed takeover of Ladbrokes-Coral will catapult the company into the FTSE100 (should it come off), and we could see an SP of between 1050-1100. For the time being, very much a hold.

HG Capital Trust (HGT) Holding = 422 shares, and
ICG Enterprise Trust (ICGT) Holding = 917 shares
Apparently, 50% of all companies are “private” and not listed on any exchange, so the only way to invest in them is via an Investment Trust. The largest and most well-known (and successful?) of these is 3i Group (III) worth £8.70 billion. If – back in August 2012 – I had just placed my entire SIPP value into 3i when the SP of that IT was at about 220, my SIPP now would be valued at about £250,000 and not at £155,000. Unfortunately, these “private” companies are a bit of a throw-back to the old days when the investor knew virtually nothing about what they were investing in. Nothing much in the way of information comes out of them, and you only really know if they are doing well when they occasionally sell one of their assets to the market for a sum in-excess of their estimated Nett-Asset-Value (NAV).  Together, they represent 10% of the SIPP value, and both are long-terms holds.

Homeserve PLC (HSV) Holding = 960 shares

A recent addition to the SIPP, mainly as this consistently profitable company is just expanding into the USA. I’m looking at choosing “momentum” companies, and Homeserve is very much that.  Currently, my holding represents 5% of the SIPP value, and I may increase this share to 7.50%.


JP Morgan Emerging Markets IT (HSV) Holding = 918 shares
Part of my attempt to diversify the SIPP. The holding represents approximately 5% of the value of the SIPP. A long-term hold.
 
Lancashire Holdings PLC (LRE) Holding = 1,215 shares
The SP has recovered from the impact of the devastating hurricanes in the USA during the summer.  Even so, there has been no special dividend this autumn (we’ve had one for the past few years). However, LRE is one of only 3 remaining specialist "Lloyds" insurers listed on the London Stock Exchange and it would be no surprise to see a bid in 2018. Remains a hold.
 
Legal & General Group PLC (LGEN) Holding = 3,444 shares
This company is a money-making machine, thanks to the changes in workplace pension provision which is ensuring huge inflows of pension contributions coming under management. The SP should continue to strengthen and, given the strong dividend yield of over 5%, we could see the SP breaching 290 in the next 6 months, and possibly even 300+.  Again, this remains a hold.

Sage Group PLC (SGE) Holding = 1,130 shares
I wasn’t expecting major movements in the SP, however, the Sage SP has gained 20% since my initial purchase at about 650 in February’17.  Sage is a strong company and growth is expected to accelerate in 2018; so we could see an SP breaking-through the 850+ level next year.  This remains a hold.

Schroder Asia Pacific Fund IT (SDP) Holding = 1,795 shares
Part of my attempt to diversify the SIPP.  I have always had an interest in the economies of the Asia-Pacific region. This holding represents approximately 5% of the value of the SIPP. A long-term hold.
 
Segro PLC (SGRO) Holding = 1,622 shares
Ever since I became involved in Segro - way back in August 2014 - with the SP at 356, this company has done nothing wrong.  My last purchase was at 407 in July 2015.  Hardly a quarter goes past without this company doing something else to strengthen it’s future. This company remains a very strong hold.

Senior PLC (SNR) Holding = 1,586 shares
Added to the SIPP portfolio in April this year at an ave price of 207 (after hitting a high of 354 in April 2015). Since my last review the SP has retreated slightly and it may be time to sell and move on.

Sirius Real Estate Ltd (SRE) Holding = 2,400 shares

Added to the SIPP portfolio this month (December17), this is no ordinary real estate company as it’s business model is providing co-working spaces for the modern “out-sourced” office worker. Essentially, operating in Germany, this is a “momentum” share and I see considerable further growth in this market which (if the UK is anything to go by) is considerably under-resourced. Just an initial purchase of shares as yet, I am expecting to increase this to about 10,000 shares or about 5% of the SIPP value.


SSP Group (SSPG) Holding = 1,200 shares
Added to the SIPP Portfolio in November17, this is another “momentum” share.  Specialising in providing retail outlets at transport hubs (rail stations and airports), this company will only stop growing when the overall economy stops growing. That could happen, but not in the short-term (12-24 months).

Cash = £16,865.09

Total SIPP Value = £156,280.00 (mid-morning 20th December 2017)






Monday, 9 October 2017

Portfolio Review 9th October 2017

BAE Systems PLC (BA.)
The 200-day MA is at 622 and the SP is holding at about that level. I'm expecting the SP to grow stronger in the next 6 months and it should regain the level it was trading between 660-670.
The company has a massive forward order book and, with the current issues in the World, it would seem to me that demand for the company products will increase, and with it will increase the company profits. I remain a holder.

Bango PLC (BGO)
A new holding for the SIPP (see previous blog). The intention is to build-up a holding representing about 5% of the value of the SIPP. Buying.

G4S PLC (GFS)
The SP is in the 276-286 range and my dilemma is which way is the SP going to go next? The recent weakness is due to the scandals in the domestic market are not good for the image of the company.  However, fundamentals are sound. Revenue is growing, and so are profits, and the dividend is being maintained. Their work may be under scrutiny, but by far the majority of the workforce do a great job. I remain a holder and will likely increase the holding if the SP drops below 270, which is unlikely at the time of writing.

GVC Holdings PLC (GVC)
On of the success stories of the SIPP.  Yes, GVC is involved in the gambling industry, but has remained on track and very profitable. Revenue is growing very quickly and all broker forecasts suggest an SP of between 875-1000 is possible within the next 6 months. Very much a hold, and I would be very surprised if we ever see an SP below 700 again.

Lancashire Holdings PLC (LRE)
The devastating hurricanes in the USA this summer will have had an effect on the SP as the company increased its "disaster" insurance with exposure to hurricanes earlier this year (a management mistake in hindsight).  However, LRE is one of only 3 specialist "Lloyds" insurers listed on the London Stock Exchange and it would be no surprise to see a bid if the SP drops below 670 for any sustained period.

Legal & General Group PLC (LGEN)
The half-year results which reported a 27% increase in profits, and after a brief period of weakness (the SP touched 250 in mid-September) the SP has strengthened and we could see 270-290 before the year ends.  Again, this remains a hold.

Paysafe Group PLC (PAYS)
The bid has been accepted at 590p per share, and I await the conclusion of the bid process.

Sage Group PLC (SGE)
With most of my holding bought at around 650 earlier this year, I'm not expecting major movements in the SP. However, Sage is a strong company and has broken above the 50-day MA and the SP is testing the all-time-high. This remains a hold.

Segro PLC (SGRO)
I love this company. Even since I became involved way back in August 2014 (3 years ago) with the SP at 356 this company has done nothing wrong.  My last purchase was at 407 in July 2015.  This company remains a very strong hold.

Senior PLC (SNR)
A recent addition to the portfolio in April this year at an ave price of 207 - I bought into this company as it is involved in aerospace and defence and I thought it was oversold at below 200 after hitting a high of 354 in April 2015. There may not be much further growth in the SP above 300.

Tuesday, 26 September 2017

4th Quarter SIPP re-structuring

As we enter the 4th quarter of the year (Oct-Dec) I've decided to restructure the SIPP in preparation for the next 6 months - a period which could result in significant movement due to the ongoing Brexit negotiations, the weakness of the Conservative government, and the volatile environment being created by the Trump administration in the USA.
In relation to the latter, I've decided to sell the shareholding in Pacific Assets Investment Trust and move the proceeds (£4,700) into my other Asian/Pacific investment trusts; that is Schroder Asia Pacific Fund, and JPMorgan Emerging Markets IT.
I've become very disappointed in the performance of GlaxoSmithKline and so I've dispensed with the entire holding and decided to reinvest the proceeds (£5,800) into my existing holdings in HG Capital Trust, G4S, and Legal & General Group.
Finally, in anticipation of losing my exposure to internet finance via Paysafe, I've purchase a small initial holding in Bango.

Although I am disappointed with the value of the bid for Paysafe (590 per share), and I've voted against accepting the offer, I'm anticipating the takeover going ahead and that the funds involved (£35,000) will require reinvesting very soon. That's why I'm buying into Bango (BGO).  This is the 2nd time that I've invested in the company, as I was a shareholder for a few months in 2013 (March to May) buying-in at an average of about 220p a share and selling at 176p resulting in a loss of about £250. Unfortunately I jumped in with the last spike in the shareprice, but quickly realised that it was a false dawn as the SP dropped to 35p in April 2016. Fingers crossed, the company has a bright future with contracts agreed with Amazon and Google Play.

I have also (temporarily) moved out of Bitcoin. The price of Bitcoin has fluctuated between US3200 - US4000 recently and until I know which direction it is going I am sitting on the sidelines.

The current holdings (as of today 25th September 2017) are:
1) BAE (BA.) : 1115 shares valued @ £ 6,996
2) Bango (BGO) : 555 shares valued at £1,443 (new purchase)
3) BlackRock Smaller Co IT (BRSC) : 1181 shares valued @ £14,644
4) G4S (GFS) : 3280 shares valued @ £8,928
5) GVC Holdings (GVC) : 1031 shares valued @ £8,670 (UP £510 from £8,160)
6) HG Capital Trust (HGT) : 338 shares valued @ £5,577
7) ICG Enterprise Trust (ICGT) : 730 shares valued @ £5,438
8) JPMorgan Emerging Markets (JMG): 907 shares valued @ £7,451
9) Lancashire Holdings (LRE) : 1215 shares valued @ £7,441
10) Legal & General (LGEN): 3405 shares valued @ £8,713
11) Paysafe (PAYS) : 6000 shares valued @ £35,400 (bid of 590p per share)
13) Sage Group (SGE): 931 shares valued @ £6,451
14) Schroder Asia-Pacific (SDP) : 1795 shares valued @ £7,664
15) Segro (SGRO) : 1607 shares valued @ £8,533
16) Senior (SNR) : 1574 shares valued @ £4,238 (UP £200 from £4,112)

Cash @ £10.092
SIPP Value = £147,679 (DOWN £6,428)

Tuesday, 5 September 2017

Portfolio Review 5th September 2017

BAE Systems PLC (BA.)
This companies SP (share price) has been consistently growing since September 2015 when the SP was under 450.  In mid-June this year the SP peaked at 675. By mid-July the SP had dropped below the 50-day MA (moving average) and had I noted that, then I would have been on the alert to sell off before (or just as) the SP dropped below the 200-day MA - which is what happened on 20th July whe the SP was at 612. The recent weakness seems to have "bottomed" at 575 which the SP closed at on 8th August. If I had sold at 612 on 20th July, then I would not be looking to move back into the company until the SP closed above the 200-day MA, which is currently at about 618. I'm not sure why the SP has been weak recently as the company has a massive forward order book and, with the current issues in the World, it would seem to me that demand for the company products will increase, and with it will increase the company profits. I remain a holder.

Blackrock Smaller Companies IT (BRSC)
I acquired the majority of the shares held between March 2015 and October 2016.  Unfortunately, when I "re-balanced" the SIPP Portfolio in January this year, I sold off 221 shares at an SP of 1000.80 which (in hindsight) with the SP now at 1245 (and having hit a year high of 1265) was a bit silly. The SP is currently at a discount of 13.70% to the NAV (Net Asset Value), and that discount is slightly better than the average discount of 15.14% for the past 12 months. I'd like the discount to narrow, but that is unlikely to happen, as the discount has only been below 12% on a couple of occasions this year, and has been as large at 20%. When I started building the stake in this company, it was to represent 10% of the total value of the portfolio, but with the holding valued at £14,700 it is a bit light and (again) in hindsight I should not have sold those shares in January. I remain a holder and (probably) a buyer when funds become available to return it to 10% of the portfolio value.

G4S PLC (GFS)
When I bought shares in G4S in the early summer of 2016 it was as a recovery play. My initial purchase on 10th May '16 was 620 @ 194, and my next purchase was another 345 @ 173: all-in-all 965 shares at an average price of 190. I continued to buy throughout the recovery, with my final purchase on 9th August this year of 352 shares @ 313. That purchase was possibly one too many, as before the ink was dry the SP dropped to under 300 and then on the 31st August (last week) dropping below the 200-day MA of 283. The SP is still in the 284-286 range and my dilemma is which way is the SP going to go next? The recent scandals in the domestic market are not good for the image of the company, but the fundamentals are sound. Revenue is growing, and so are profits, and the dividend is being maintained. Their work may be under scrutiny, but by far the majority of the workforce do a great job. I remain a holder and will likely increase the holding if the SP drops below 270.

Glaxosmithkline PLC (GSK)
This company has been a part of my SIPP portfolio since August 2014 (3 years), and - to be honest - I don't know why I continue to hold it. I sold a large portion of the holding in July 2016 when the SP was at 1660, and right now I wish I hold sold the lot. The SP has topped 1700 four-times since July 2016, the most recent occasion being on 23-26th June this year, but the SP has also dropped below 1550 on four-times in the same period, the most recent being when it hit a low of 1480 on the 21st August. The SP looks almost impossible to predict, but when the SP dropped below the 200-day MA of 1610 on 21st July that was a bad sign and I really should have sold then. Right now, I don't think the SP will drop below 1500 and if it closes above the current 200-day MA of 1519 in next week or so and shows some strength then I will hold and set a target price of 1650 at which to sell out.  If it wasn't for the dividends I would have moved-on from this company a long time ago.

GVC Holdings PLC (GVC)
On of the success stories of the SIPP.  Yes, GVC is involved in the gambling industry.  I bought my entire holding (bar reinvestment of dividends) in 2015 at an average SP of 450. I wish I had kept on buying as on 1st December 2015, the SP hit a low of 372.  Apart from a period of weakness between Oct'16 and Feb'17 when the SP slipped from 760 to 610, the company has remained on track and very profitable. Revenue is growing very quickly and all broker forecasts suggest an SP of between 875-1000 is possible within the next 6 months. Very much a hold, and I would be very surprised if we ever see an SP below 700 again.

Lancashire Holdings PLC (LRE)
I bought 1000 shares in LRE in Jan-Feb 2015 at an average SP of 623, and the increases in the holding to 1209 shares today have been made through the reinvestment of dividends. It is disappointing that the current SP of 665 is so far below the year-high of 775, but then the SP does swing considerably during the year.  The company can make enormous profits, and there have been large special dividends paid in each of the past 5 years. The devastating hurricane in Texas this summer will have had an effect on the SP, and the company increased its "disaster" insurance with exposure to hurricanes this year.  So, the depressed SP is almost certainly due to this increased exposure.  However, LRE is one of only 3 specialist "Lloyds" insurers listed on the London Stock Exchange and it would be no surprise to see a bid if the SP stays at this level (below 670) for much longer.

Legal & General Group PLC (LGEN)
I purchased most of my holding in July-August 2016 at prices under 206, so the strength of the SP in the past 12 months - reaching a year-high of 279 on 9th August - has been very welcome. The 200-day MA is at 254.50 so the SP (which has retreated recently) is very close to that. Given the very buoyant half-year results which reported a 27% increase in profits, I can't understand the recent weakness in the SP and I'd expect the strength to return during the autumn. Again, this remains a hold.

Paysafe Group PLC (PAYS)
The bid finally came but, at 590p per share, it wasn't as generous as expected. I've trimmed my holding by 1000 shares to use the proceeds elsewhere and await either conclusion of the bid process or a potential new bidder arriving on the scene.

Sage Group PLC (SGE)
Although I'm sitting on a small profit with most of my holding bought at around 650 earlier this year, I'm not expecting major movements in the SP. Sage looks a slow-burner, and therefore remains a hold.

Segro PLC (SGRO)
I love this company. Even since I became involved way back in August 2014 (3 years ago) with the SP at 356 this company has done nothing wrong. The market, however, makes up its own mind - and this is why you should form your own opinion and follow it. I decided to buy up to 410, and my last purchase was at 407 in July 2015 - and I have had plenty of opportunities to increase my holding since then, but I've invested elsewhere. I don't think having multi-holdings is a good idea, as this is the concept of risk mitigation - and if you mitigate your risk, you limit your opportunity. This company remains a very strong hold, especially in this age of Brexit and in the knowledge that Segro has a virtual stranglehold on storage space around Heathrow Airport. Imports will become very important soon - I will leave it at that...

Senior PLC (SNR)
A recent addition to the portfolio in April this year at an ave price of 207 - I bought into this company as it is involved in aerospace and defence and I thought it was oversold at below 200 after hitting a high of 354 in April 2015. I admit I was heavily influenced in my purchase by the Investors Chronicle and I haven't looked back. I doubt there is much further growth in the SP above 300, and it may be that I'm about to sell out and move on.

XBT Provider (XBT-BIT)
I am sure anyone reading this will have a "Marmite" feeling. With crypto-currency you either love it or hate it - you will not be sitting on the fence. I think - sorry that's wrong, I know (as far as my knowledge will allow) - that crypto-currency will completely revolutionise the entire economic make-up of the modern world. I am not saying that "traditional" currencies will cease to exist - they won't.  The entire world will not - it cannot - be modernised. I think (it's just my opinion as I will be long dead and gone before it's realised) that the "modern" world and the introduction of artificial intelligence will see a resurgence in "traditional" ways of life. How will it be financed? Society will reject the current situation that has dominant companies: Google, Apple, Amazon, Facebook, etc making enormous profits, and then just sitting on the money as the amounts are just too huge for individual companies to manage. Taxation of corporations and the use of "universal credit" will see people move away from stressful, computer-screen based jobs, to occupations that require hands-on skills and will form a new leisure industry.
How will crypto-currency benefit? Before we get there, banking as we know it will break-down, because the banking model doesn't work in the modern world, it is too slow and expensive. It's not just me saying this, there is a lot of information on the internet but, like when the horse-less carriage was introduced (the motor-car to you and me) change takes time to be accepted.  
I've bought 800 units in XBT-BIT which is equivalent to 4 Bitcoin. I think that bitcoin will eventually be the basis of all international currency transactions (unless something else comes along which is better), and the cost savings use of bitcoin (and the like) will allow for the increased taxation of profits and the instigation of universal credit that will transform society. Bitcoin is currently valued at between US$4000 - US$5000 but I can see this value increasing 10-fold within 2 or 3 years as knowledge and acceptance occurs. It really would not surprise me to see Bitcoin attain values of over US$500,000 per coin within my lifetime - assuming that I live another 20 years or so.   As such, it should be no surprise that I intend to hold on to by Bitcoin.

Monday, 4 September 2017

Holdings 4th September 2017

The current holdings (as of today 4th September 2017) are:
1) BAE (BA.) : 1115 shares valued @ £ 6,746 (UP £184 from £6,562)
2) BlackRock Smaller Co IT (BRSC) : 1181 shares valued @ £14,632 (UP £354 from £14,278)
3) G4S (GFS) : 2410 shares valued @ £6,873 (UP £90 from £6,783)
4) GlaxoSmithKline (GSK) : 396 shares valued @ £6,001 (UP £16 from £5,985)
5) GVC Holdings (GVC) : 1031 shares valued @ £8,160 (UP £47 from £8,113)
6) HG Capital Trust (HGT) : 220 shares valued @ £3,742 (UP £22 from £3,720)
7) ICG Enterprise Trust (ICGT) : 730 shares valued @ £5,431
8) JPMorgan Emerging Markets (JMG): 625 shares valued @ £5,325 (UP £204 from £5,121)
9) Lancashire Holdings (LRE) : 1209 shares valued @ £8,227 (down £623 from £8,850)
10) Legal & General (LGEN): 2860 shares valued @ £7,384
11) Pacific Assets (PAC) : 1931 shares valued @ £4,866 (down £63 from £4,929)
12) Paysafe (PAYS) : 6000 shares valued @ £34,950
13) Sage Group (SGE): 931 shares valued @ £6,428 (UP £93 from £6,335)
14) Schroder Asia-Pacific (SDP) : 1252 shares valued @ £5,471 (UP £69 from £5,402)
15) Segro (SGRO) : 1607 shares valued @ £8,670 (UP £65 from £8,605)
16) Senior (SNR) : 1574 shares valued @ £4,312 (UP £200 from £4,112)
17) XBT Provider (BIT-XBT): 800 units valued @ £13,499 (UP £5,012 from £8,487)
Cash @ £3.390 (was £669)
SIPP Value = £154,107 (UP £4,597)

The main increase has been in Bitcoin with my holding (200 units is equivalent to 1 Bitcoin) increasing in value by 59% and this is over 10% below the peak value.  Bitcoin is the future of financial transactions.  This will be an anathema to many who are professionals in the banking world, but the onslaught of crypto-currency cannot be halted. It may come as a bit of a surprise to many traditional investors to learn that with the sabre-rattling missile firing of North Korea last week, while stock markets wobbled, Bitcoin rose to a record high of almost US$5,000 per bitcoin. The price has slipped since Saturday 2nd September to just over US$4,300 as I write this, but I cannot see it dropping more than 30% below that all-time high. Where will it end up?  I can see Bitcoin hitting US$10,000+ before the end of 2018.

Friday, 4 August 2017

PAYS recommends accepting offer


The current holdings (as of today 4th August) are:
1) BAE (BA.) : 1115 shares valued @ £ 6,562 (down £258 from £6,820)
2) BlackRock Smaller Co IT (BRSC) : 1181 shares valued @ £14,278 (UP £283 from £13,995)
3) G4S (GFS) : 2058 shares valued @ £6,783 (down £187 from £6,970)
4) GlaxoSmithKline (GSK) : 393 shares valued @ £5,985 (down £410 from £6,395)
5) GVC Holdings (GVC) : 1031 shares valued @ £8,113 (UP £168 from£7,945)
6) HG Capital Trust (HGT) : 220 shares valued @ £3,720 (UP £50 from £3,670)
7) ICG Enterprise Trust (ICGT) : 470 shares valued @ £3,492 (UP £59 from £3,433)
8) JPMorgan Emerging Markets (JMG): 625 shares valued @ £5,121 (down £9 from £5,130)
9) Lancashire Holdings (LRE) : 1209 shares valued @ £8,850 (UP £180 from £8,670)
10) Legal & General (LGEN): 2489 shares valued @ £6,767 (UP £187 from £6,580)
11) Pacific Assets (PAC) : 1931 shares valued @ £4,929 (UP £9 from £4,920)
12) Paysafe (PAYS) : 7000 shares valued @ £41,300 (UP 490 from £40,810)
13) Sage Group (SGE): 931 shares valued @ £6,335 (down £85 from £6,420)
14) Schroder Asia-Pacific (SDP) : 1252 shares valued @ £5,402 (UP £56 from £5,346)
15) Segro (SGRO) : 1607 shares valued @ £8,605 (UP £417 from £8,188)
16) Senior (SNR) : 1574 shares valued @ £4,112 (UP £325 from £3,787)


Shareholdings total = £140,359 (UP £1,280 from £139,079)
17) XBT Provider (BIT-XBT): 798 units valued @ £8,487 (UP £329 from £8,158)
Cash @ £669
SIPP Value = £148,846 (UP £1,609 from £147,237)


In early July, I decided to sell-off my holding in Imperial Brands Group (IMB) at 3422-pence (recouping £5,842) and - in hindsight - that looks a good call.

I’ve invested the proceeds of that sale in crypto-currency Bitcoin (BTC) via XBT-Provider tracker fund (BIT-XBT).  I’ve accumulated 798 units in the fund at the equivalent of approx. US$2,455 per BTC. The value of BTC has remained between $2,700 - $2,800 this past week, and the expectation is that if the value can crack US$2,800 then there is likely to be a strong surge of pent-up support that will push the price to over US$4,000.

The news today is that the Paysafe board of directors have accepted (and recommended to shareholders) the US$3.70bn, 590-pence a share, offer from Blackstone and CVC Capital Partners. Now that we have a formal bid on the table if there is an alternative offer being prepared then we will see it soon. I was hoping that the 590-pence offer would be rejected by the board of directors, but I suppose the CEO Joel Leonoff wants to see a return for the efforts he has put in building this company up, and he holds nearly 10 million shares worth about £57 million – a nice “retirement” fund!

My problem – when the sale goes through – is that I will have to find somewhere to invest the proceeds. The Paysafe holding represents 27.50% of the total value of the SIPP and even if I rebalance with a minimum of 5% of value with each holding, then I’m still going to have a fair percentage in cash.