Share Consolidations
I may have briefly touched upon this before, but I'm starting to become a little frustrated with certain stocks within my portfolio. Whilst, I'm still (naively) optimistic that at least one of my picks will eventually 'deliver the goods', I'm becoming a little frustrated with some of my 'Wild Card' entries.
My portfolio consists solely of AIM stocks and covers a fairly broad spectrum of sectors. However most of the 'meat' is contained within mining (spread over silver, gold, copper, rare earths , Lithium/Cobalt, Tungsten and potash). I have some 'quality' AIM stocks and some not so's.
It's the 'not so's' I want to quickly talk about now! Basically, I've not been practising what I preach in all instances and have therefore put half a £K here and there in mining shares with 'Potential'. However, the only 'Potential' that I'm currently seeing is the potential for them to lose me money!
You see, the shares were at an attractive price to a contrarian such as myself and so I bought in hoping that a buy and hold strategy could see a substantial return on investment. However, the shares have done little more than depreciate further in price to the point where the management teams decide to do a SHARE CONSOLIDATION to improve the price. Whilst consolidating isn't necessarily a bad thing, I've noted that for the one's in my portfolio they are looking like repeat offenders i.e consolidate, raise funds through new shares (i.e. dilute), see the share price fall and then repeat.
My Advice - unless you know your Sh*t be careful dabbling with junior miners!!
With this in mind, I'd like to hear back from those wiser than myself. Can anyone recommend some decent miners within Canadian and Aussie markets. (I'm still looking for those with plenty of upside but not '1 in a million' contenders)
Thanks
Love the pictures, lol.
Thanks! tried to make it appropriate to the blog!
Personally, do not own a single miner - do own a couple of mining related shares - one I do like is Master drilling - think only listed on the JSE. That said, was slightly tempted to jump on a lithium miner, TAWANA, listed on the jse and in oz. they have a few promising projects coming online. But miners scare me so ran away...
Thanks for your suggestions Al.
I'm attracted to miners because I think the bottom has come in and there's hints of an emerging bull market (lithium/cobalt a prime example). I see plenty of upside. However, mining does involve vast sums of money to convert promising land into a viable and productive mine.
So in terms of sectors where else might be worth a look? Is biotech another risky area?
Depends on you risk profile. I retired very young so pretty risk adverse - I am overweight property - but the rest is very diversified. I am only invested on the jse which does not have as much choice as the LSE. guys are saying most large cap euro stocks are under valued at the moment. Personally picking up a bit of AB inbev - nice and boring. For excitement I go to crypto's -
Thanks Al
I'd like to retire young! I've certainly dipped my toes into cryptos - buying a little here and there, but my investments are really just spread over property (just a residential house we let), PMs and Stocks. The first two I consider safe bets where as stocks I'm happy to take more risk with. I'm aiming to pay off my mortgage by backing the right horse.