What is the riskiest share you have bought?

cashbackproblems

Sirius Exploration, bought a few hundred quid then the following week the price x 4 and this was my first purchase so was looking at my account with £1k+ having put in £200 the week before! So obviously i then purchased a ton more and held while the pricr slowly went lower and lower and now its 1/5 of what i paid for it.

Recent weeks has shown some v good news and im still confident i'll make some profit, but i regret buying it as sticking it in a ftse high dividend company would probably make me as well off without the stress/hassle and uncertainty.

Reaper

Sceptic001 wrote: »

Where do you find this info, Reaper?

I forget where I first saw it as I do lots of reading around before investing, but here is a reference to it (in June) from a quick Google: http://www.thisismoney.co.uk/markets/article.html?in_article_id=507199&in_page_id=3

Reaper

cashbackproblems wrote: »

Sirius Exploration...now its 1/5 of what i paid for it...Recent weeks has shown some v good news and im still confident i'll make some profit

I had a 1 minute look. The recent share rise seems to be because of their involvement with potash which is the current hot topic so you may yet recover some of your investment.

but i regret buying it as sticking it in a ftse high dividend company would probably make me as well off without the stress/hassle and uncertainty.

That's why risky shares should be only a small percentage of your total investments. It makes them fun rather than stressfull.

cashbackproblems

Reaper wrote: »

I had a 1 minute look. The recent share rise seems to be because of their involvement with potash which is the current hot topic so you may yet recover some of your investment.
That's why risky shares should be only a small percentage of your total investments. It makes them fun rather than stressfull.

Yep we have BHP to thank for that for putting Potash on the front pages! That was the only reason i bought in the first place as id spoken to a friend whos a scientist and he was raving about the future uses and demand of potash. Plus the company is sitting on vast amounts of land in North Dokota, its just a case of drilling for the stuff which is costly or getting taken over for a quick buck! For interest/dividends iv sacrificed over the last few yrs had it been in the bank, i need to sp to go from 3p to 16/17p. Not unrealistic if you look at companies like chariot oil.

At the time is was 100% of my portfolio and i had used my first few paycheques after uni for this!! Since i have diversified and now hold Barclays, RBS and Aviva as the majority.

Reaper

Here is my lastest purchase and I have to say this really is a daft one because I really struggle to find anything good to say about it!

It's JJB Sports. Until recently run by scandalously incompetant management who took it right to the very brink of bankruptcy. Now under new management.

To pick out a few points:

The Bad
* No dividends, making a loss
* Supermarkets + online retailers eating into their market.
* I imagine Englands early exit from the world cup mean sales this year would not have been as high as hoped.
* Finance Director is resigning.
* Management have said not to expect any dramatic recovery.

The Good
* They tried redesigning 1 trial store which worked well and it helped sales (+9%).
* An American fund, Harris Assosiates, who looks for good value bombed out stock has been investing steadily, they now own 19% of the company. This has helped prop up the share price and some wonder whether a takeover bid is possible (though I'm not clear why they would want to).
* Rugby World Cup next year may help sales.

As I say this one really is daft and I can't put my finger on why I wanted to buy it. The fact it is a bombed out stock is not by itself a good reason to buy. Anyway I said to myself if it got cheap enough I would give in and buy and today it did.

Remember there is no room for emotion in the stock market - do what I say not what I do!!

Jonbvn

My turn to chip in.

Bought SCHE at just above 30p in early Aug. It then fell like a stone to 17.5p. Last Friday there was a feeble bid from an ex Soros Hedge Fund. Price went up 67% in a day. Presently at 35.5p.

Why didn't I double down!!!!

I like the HMV income idea. Can see potential there.

Reaper

Jonbvn wrote: »

Bought SCHE at just above 30p in early Aug. It then fell like a stone to 17.5p. Last Friday there was a feeble bid from an ex Soros Hedge Fund. Price went up 67% in a day. Presently at 35.5p.

Wow yes, 100% up in a matter of a few days. Are you planning to sell now?

JonnyBravo

MXP (still in it, been in profit and loss plenty of times in last few months)

Why is it risky?
Huge debts (relatively) and near zero cash. Debt repayment due to start Jan 11.

Why did I buy it?
Greed of course. It has huge potential assets. Possibly 4 billion barrels of oil if it could afford to drill the deep prospects.
Currently drilling shallow prospects which may just enable it to survive long enough to see if the "big one" is down there. Currently generating $4m/month from sales.

Outcome?
Unclear but looking worse over last 2 months. Big unexpected tax bill and loss of an asset which admittedly no-one thought they could drill. Currently drilling KAW-1 which is massively important for sentiment. Results due in 2-3 weeks. It may decide it's fate in my portfolio.

Jonbvn

Reaper wrote: »

Wow yes, 100% up in a matter of a few days. Are you planning to sell now?

Not immediately. I think there is more upside in this stock yet given that it was at 150p in January. IMPO, all the bad news was already priced in. I may sell at 40p (now it will probably fall 50% by 8:30am;))

The usual caveats apply, DYOR......

Jonbvn

JonnyBravo wrote: »

MXP (still in it, been in profit and loss plenty of times in last few months)

Why is it risky?
Huge debts (relatively) and near zero cash. Debt repayment due to start Jan 11.

Why did I buy it?
Greed of course. It has huge potential assets. Possibly 4 billion barrels of oil if it could afford to drill the deep prospects.
Currently drilling shallow prospects which may just enable it to survive long enough to see if the "big one" is down there. Currently generating $4m/month from sales.

Outcome?
Unclear but looking worse over last 2 months. Big unexpected tax bill and loss of an asset which admittedly no-one thought they could drill. Currently drilling KAW-1 which is massively important for sentiment. Results due in 2-3 weeks. It may decide it's fate in my portfolio.

I work in the oil industry for a super major. Given the costs of drilling your average offshore well, it never ceases to amaze me how these little guys survive - I guess may don't!