Please note I am not tipping any shares and would seriously encourage anyone reading this to carry out thorough research on any company they are thinking of buying!!!!!!
Stop losses, don't you just hate them when you knocked out of your favourite share for no reason what so ever!
Well, no actually, certainly not in my mind anyway. See, the above is exactly what happened to me this very morning with IQE despite the release of some very positive year end results. For whatever reason, the market reacted very negatively to news that the company had increased it's yearly pre tax profits by a very healthy 17%. Share price very early doors was down by 15% which had triggered a stop loss I had put in place following recent rises. This meant I sold IQE completely unemotionally for a 15% profit without having to lift a finger. Now you may be saying, "but the results were really good, this share is only going to continue upwards", I actually agree, I do think they will continue upwards. Which is why I actually brought back in at a slightly higher price than what I was stopped out at. "Madness" I hear you screaming! "You shouldn't have such a tight stop you complete nincompoop!!!". You could well be right, but this (so far at least), works for me. It takes out all the emotion from selling. Now if these results had come out this morning and had been absolute trash, and I didn't have a tight stop loss in place, I might have been sitting on a loss as I type this out. However unlikely that is, personally, it's a risk I don't wish to take. A very valuable lesson I learnt in October with QP. when bad news meant a very costly loss! So my mantra with this sort of thing at present, let the stops act first, then take a rational look at the situation afterwards when your money isn't on line. The fact is here, the results are very good, so good in fact, I ended up buying back in like I mentioned previously. Again I've a stop loss in place should things slide back. As of this evening the price had stabilised around 50p, fingers crossed the selling has finished now and we can continue moving upwards.
Elsewhere, Somero (SOM) also released their end of year results on the 15th. Headline figures which jumped out at me were 22% increase in pre tax profits, net cash increase of 60%, dividend increase of 61%. The company is very positive about the forthcoming financial year also and with the profits to market cap ratio still at just under 8 times, I feel this still has plenty of room to grow. Ex divi date is 31st March with payment on the 17th April which will be a nice little bonus on top of what has already been an impressive rise. I currently sit on a profit of over 45% here in my SIPP, and a profit of 15% in my ISA.
I've not made any other trades since my last update, I am however keeping an eye on Taptica (TAP) who produced a positive set of end of year results. There are just one or two small issues with the spread (5%) and the NMS (less than 5k) which are stopping me currently. If the share price starts to move up though I will be very tempted to jump on board!
I have updated my TRADES PAGE to reflect the recent trades completed.
Confessions of a Crap Trader is a blog following a regular investor trying to make profit via the London Stock Exchange. Follow his journey as he attempts to hopefully one day pay his mortgage off in full!