imutual.co.uk

richard@imutual wrote: ↑

Wed Jul 08 2020 3:51pm

I just don't get the logic of mandating that the funds be invested in PGM (which, at the time of writing, now represents nearly half of our entire portfolio!)

Richard Frost wrote: ↑

Wed Jul 08 2020 4:48pm

If you do decide to go for gold fever, have a quick exit strategy and do not rely on organising a vote before you sell, if you need to. if you need to exit you may need to do it sharpish. Any delay could leave you with a very nasty taste in the mouth. Too high risk for me personally if you pull it off, then good luck to you.

garindan wrote: ↑

Wed Jul 08 2020 4:23pm

richard@imutual wrote: ↑

Wed Jul 08 2020 3:51pm

I just don't get the logic of mandating that the funds be invested in PGM (which, at the time of writing, now represents nearly half of our entire portfolio!)

Personally, I'd have sold all the bluechip shares a number of weeks ago and already have put them in PGM and made all the money back even before the last few days of PGM share upturn. My view then was and it still remains that there is plenty of life in the share to still do this. I don't have this feeling with any of the other shares at the moment and I don't know enough about any other "new" shares to replicate the aim. I'd hope PGM might make 200p before Christmas, and if it does we can be looking at a couple of potentials. Firstly, if we have invested the bluechip money into the share we could exit and have made the lost money back. Additionally we could sell the value of our original stake in PGM, thus clearing the cost element and be left with just the remaining element, which all being well by then, would be worth £3.5k after selling that portion. That would still give a good percentage of the holding's value to decide whether to continue to hold or sell.

Yes, it is a riskier strategy but riskier within some kind of calculated reason. I can't see the point in selling the bluechips unless there is a good redeployment strategy in place that will hopefully see some gain. The above might never happen of course but nobody really knows what shares are going to do. Maybe we are looking at the answer to the issue and maybe we are not.

At the end of the day not many of us want to have the bluechip stocks, we are not generally inclined to take the loss happily and there aren't a queue of suggestions of how to resolve the issue. That obviously doesn't mean the suggestion I have made is right or indeed that it is wrong either. What it does give is a strategy forward for those shares, which we don't currently have.

parchedpeas wrote: ↑

Wed Jul 08 2020 5:09pm

At £1.31 as I write.

Whatever we decide, I agree an entry and exit strategy is what we need here, baked into the vote with dates and prices pre-agreed.

Beachboy wrote: ↑

Wed Jul 08 2020 10:05pm

The counter argument if you feel it will drop back is to try and sell all our current holding before it does and then buy back in again once it has fallen. This could be with the proceeds from any PMG sale and/or the blue chip sales as well.

Just putting it out there as an option.