EDIT: I HAVE REMOVED TWO OPTIONS. IF YOU HAD PREVIOUSLY VOTED TO KEEP THE BLUECHIPS PLEASE CAST YOUR VOTE AGAIN. IF YOU HAVE VOTED FOR EITHER PURE GOLD MINING OR BAKKAVOR PLEASE REVIEW YOUR CHOICE AS FURTHER INFORMATION POSTED BY MEMBERS MIGHT BE HELPFUL.
We have been discussing ways we could look to take advantage of the current market to invest further in one of three shares we currently own in order to move on our loss making bluechip shares and turnaround the situation by making gains. The three shares we have been discussing are:
Pure Gold Mining
- this share fell to around 27p in lockdown but has seen great price growth over the past weeks and continues to rise at a signficant rate due to very positive mining news and investment from well known and respected investors. This share could see a rapid opportinity to make quick and substantial gains to cover the original loss.
- this share has seen its value rapidly decrease since lockdown, rise to ~100p and fall back again. There is potential for a recovery, but it is not currently clear how much the lockdowns in Europe have effected the business, with the share currently half the price we originally paid for it.
- this share also saw a rapid decline in value during lockdown, falling from what would have been a very reasonable profit margin if we'd sold, to being signficantly less than the purchase price we paid. The price has since recovered from the low to sit around 150p, which is some 100p less than the previous high before lockdown. There is potential for a recovery, but it is not currently clear how much the lockdowns have effected the business.
Our bluechip investments cost:
- Vodafone £599.39
- Aviva £599.61
- ITV £619.19
Our current bluechimp investments, as of Monday 13th July 12pm were valued as follows:
- Vodafone £340.70 + £68.47 divi = £409.17
- Aviva £332.10 + £68.45 divi = £400.55
- ITV £165.02 + £114.64 divi = £279.66
Our total loss on these is currently: £728.81 / 40%
The target selling price after purchasing Pure Gold Mining, Ramsdens or Bakkavor shares would be a percentage gain that matches the loss percentage, plus an additional 2.5% to cover costs of all share transactions. Once this target price is achieved the shares bought to implement this strategy will be sold and the money made available for reinvestment.
There are risks involved with this approach. We do not know what will happen with these three shares in the coming months. Placing additional investments in these higher risk companies does double-up the chances of making a significant loss. However, the counter side of the argument is the opportunity to make rapid price gains - a completely different situation to bluechips.
Of course we don't have to do this either, so you can vote to keep the bluechips.
It is really important to take a read of the discussion we have been having in this thread
as well as contributing your own thoughts here.