Tuesday, April 11, 2006

Porfolio matters - being cautious

On February 10 I established a hypothetical $100,000 share portfolio to see how I would go. With the market booming I have decided to cash in my biggest chip. Today I sold 1,000 BHP-Billiton for $30-25 this afternoon compared to my nominal purchase price of $24-75 two months ago giving a profit of 22.2% over the period.

Although my Australian Agriculture holdings have appreciated 12% and my Gowings shares by 6.5% I think there might be more in these so I will hold on. Australian Agriculture has bought into a Wagyu beef property which augers well for its future. The two speculative stocks I hold have been disappointing despite claimed good news from Biotron on the ability of one of its anti-virals to combat bird flu. I charged $50 brokerage on the BHP-Billiton transaction and repaid the bank the $650 I owed it. My portfolio stands as:

  • 10,000 Gowings worth $29,600.
  • 15,000 Australian Agriculture worth $27,900.
  • 50,000 Hostworks worth $11,500
  • 30,000 Biotron worth $7,500
  • Cash at bank of $29,080.

so overall I am ahead by 6.5% after 2 months. Its nice to have some cash. I will take up a 2 for 7 rights issue from Biotron over the next few days at 23 cents unless the price 'on market' dips below this.

I am interested in the speculative gold stock Renison which I would be interested in buying at around 32 cents. I remain interested also in the uranium spec Redport which should please my greenie mates.

Note: This is a hypothetical portfolio and I am not urging anyone to buy or sell anything. But I might well trade in these stocks.

Update: Today (11/4/06) I took up 8572 Biotron rights at their issue price of 23 cents costing $1972. I also bought 25,000 Renison at 0.325 cents costing $8125. Brokerage was $25. This reduces my cash at the bank to $18,983.


Anonymous said...

Harry, those %increases are not nett ie less tax etc, so in real terms what was the benfit?

hc said...

About half that if I am on maximum marginal tax rate.