What is the riskiest share you have bought?

sabretoothtigger

cashbackproblems wrote: »

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.

I guess thats why SKR is doing well recently. They own rights to the USSR's largest known Potash deposit, used since the 1930's

Combined with basically falling since the start of the year, it had to come good at some point right

SKR is an ex Lehman favourite so it must be good :rotfl:

Up from 17 to 24, I think it might get to 30 before the next market meltdown or whatever, hopefully.
They dont really produce anything, potentially it could double, triple if they were selling potash to the chinese and all was good?
Price was 150 previously but shares are diluted for funding as happens to alot of aim companies I think


'Canada and USSR account for 60% of worlds potash resource'

http://books.google.co.uk/books?id=Wm6QMRaX9C4C&pg=PA75&lpg=PA75&dq=USSR's+largest+known+Potash+deposit&source=bl&ots=sIKPCpb3ap&sig=iKkB6fykdBCfTLfmiIg6TnunDxM&hl=en&ei=HyGATNrSB6SJ4gbYo8zTCw&sa=X&oi=book_result&ct=result&resnum=1&ved=0CBcQ6AEwAA#v=onepage&q&f=false

Potash and agriculture has an interesting wider dynamic. One of the USA's largest latent industries is food production, if any big change in the world happened like usa being forced to export real goods :shocked: , for paying the bills (vs debt spending, etc)
boring old farming might be much more in demand?

cashbackproblems

sabretoothtigger wrote: »

I guess thats why SKR is doing well recently. They own rights to the USSR's largest known Potash deposit, used since the 1930's

Combined with basically falling since the start of the year, it had to come good at some point right

SKR is an ex Lehman favourite so it must be good :rotfl:

Up from 17 to 24, I think it might get to 30 before the next market meltdown or whatever, hopefully.
They dont really produce anything, potentially it could double, triple if they were selling potash to the chinese and all was good?
Price was 150 previously but shares are diluted for funding as happens to alot of aim companies I think


'Canada and USSR account for 60% of worlds potash resource'

http://books.google.co.uk/books?id=Wm6QMRaX9C4C&pg=PA75&lpg=PA75&dq=USSR's+largest+known+Potash+deposit&source=bl&ots=sIKPCpb3ap&sig=iKkB6fykdBCfTLfmiIg6TnunDxM&hl=en&ei=HyGATNrSB6SJ4gbYo8zTCw&sa=X&oi=book_result&ct=result&resnum=1&ved=0CBcQ6AEwAA#v=onepage&q&f=false

Just done abit of research on SKR and i have definately come across them in the past when i was investing in dodgy companies!! WIth AIM stock potential extraction can be factored into the price depending on how far developed the company is, tho im sure if skr actually dug up some phrosphates for fertilizers etc it would be worth more x4/5. Plus it looks like their reserves are placed in close to india/china and transportation is also a big issue.

WIll be researching the company this week as i dont know how realistic it is tht they will produce or if theres even short term money to be made on the speculation, however now sxx is on the up i am more confident again (we'll forget abt the losses on pmk!).

Have u invested, whts ur time frame? Also experience has taught me patience is key, i held sxx from 10p all the way down to 2p, these shares can take yrs to pay off.

sabretoothtigger

Bit of irony there is that plus markets is how alot of these aim shares are purchased for me. I think plus makes it very cheap to a few brokers to provide liquidity and carry out deals on their network. I wouldnt want pmk to go under


Yep Im invested but I dont really do small caps that much. I put in a small amount and I'll probably not wait years for it to get to its proper value. Agriculture probably will be big in ten years, who knows

I invested with a trading perspective, I havent got years really. I believed 20 was close to a base price, it actually went to 17 which was a good failsafe as a series of previous highs was about 17.
The lehmans dumping the shares onto the market was an obvious reason to buy in for me and then you just take the risks as normal, turns out bhp did a bit of a favour. I secretly hope they will just buy skr instead

Holding down to 2p, I dont know because there are usually reasons why it does that. So I'd try and stop to consider the reasons not the price so much, people get shaked out over nothing sometimes.
I read articles on Kazakhstan to try and have a clue, there is KAZ of course too. Their government seems progressive and realistic to why encouraging investment is good for them


Go back to SKR 2009 rises and the gradient there indicates a price of 30 now is a reasonable target, just my guesswork.

cashbackproblems

Yeh SKR is up again today but sirius is up ANOTHER 22%+!!

Dunno whts happening with pmk, your right it doesnt know how to generate money, shuould be doing things such as working with goverments to help start ups list etc.

kyusho

I would say my riskiest share purchase was Provexis, only bought a £1000 worth though and then benefitted from a 150% rise before selling. For a blue chip company i'd say Taylor Wimpey; although they are relatively solid now with good prospects for the future.

JonnyBravo

Jonbvn wrote: »

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!

Absolutely.
Thankfully MXP are entirely onshore, but still struggling to find the $1.5m/well they need to finish their shallows.

MacsReturns

Reaper wrote: »

HMV - one I have bought and would classify as risky.

Why is it risky?
1) Both HMV and the bookshop Waterstones which it owns are under pressure from internet retailers such as Amazon. Their high street competitors have already gone out of business (eg Zavvi, Borders)
2) If the predicted double dip happens people may cut back their spending on things such as entertainment.
3) Apparently it is the most shorted stock in Europe because the market expects a steady decline - so don't expect the share price to go up!

Why did I buy it then?
1) HMV management are doing all the right things. e.g. diversifying into live concerts and ticket sales, online stores etc and sales have largely held up so far.
2) It is the most shorted stock in Europe. Yes I know I put that as a risk factor but to me it means the share price is always going to be good value.
3) Their high street competitors have already gone out of business. Yes another one I listed as a risk factor but for those who don't like shopping on the internet there aren't many other choices any more.
4) This is the big one - huge dividends. For the last 5 years they have very consistently paid 1.8p in February and 7.4p in October.

What puzzles me is how low the share price is. Today it closed at an astonishing 57p. Now somebody tell me if I'm missing something obvious but as the next dividend has already been declared and we have not reached the ex-dividend date that means people buying at that price will get a 13% return in just a few short months - and if the pattern holds an additional 3% six months later.

While this is certainly not a share to buy in the hope it will go up in value surely it should apeal to those seeking income. Yet people still seem keen to buy poor paying corporate bonds.

I keep getting a nagging feeling I must be missing something obvious. If so somebody please let me know asap because I'm thinking of buying more.

Yes, exactly the same here!

TBH I first was attracted when they came out on top of a high-yield stock screening, and that was a few months ago before I had any spare cash. At that time yields were 'only' about 9%, and since then the SP had plummeted. I've bought a couple of wodges, and have averaged out at 58p. So my holding is now doing the red/blue shuffle on a daily basis, but on a 13% yield I can live with that

Apart from the shorters I really can't explain why the stock is so beat up. The management seems to be spot on, almost a poster-child for 'management turnaround' as far as I can see. I know opinions are strongly (and heatedly) divided about HMV, and I'm in the bullish camp, but just like Reaper I keep looking over my shoulder, wondering what it is that I've missed with regard to Mr Market's poor opinion.

The other risk I've taken on board is BP, but at an average price of 326p, I don't see a lot of downside to that, and as I intend to hold for the long term I can swallow a bit of volatility now. Didn't stop me cheering when it closed over £4 again today, though :j I just hope they have the 'nads to reinstate divis in Q1 2011

equitydealer

In the last 6 months -

What? BP
Why is that risky? Bought it when the share price sank below 375p which was by buy in price. I took a gamble that the leak would be plugged in July, factored in ~$30bn of clean up costs and the value of their assets were still worth considerably more than the share price at the time. Bought more at 320p and started to panic when the price fell below 300p by luckily held my nerve! Was a risky purchase though, if the leak had not been plugged in July, oil would still be spewing out, costing the company up to $4k in fines per barrel of oil.
Why did I do it? BP is a big company with sustainable cash flow, it can easily pay for the leak costs, and I think their partners in the Macondo well have got off too lightly so far and will have to foot their share of the bill at some point
Any regrets? None, my average purchase price is well below the current share price.

Of all time

What? Woolworths
Why is that risky? The company was seriously stuggling against competition, mostly online stores, but if it had implemented a new business plan and closed down some of its loss making stores it could have recovered. Woolies tried to do too many things without being the best at a few (apart from pick 'n mix!)
Why did I do it? Rewards would have been big if Woolies had pulled it off.
Any regrets? Yes - I should have looked at the assets v debt, I got carried away with the famous name and thought someone would come in to rescue them (i.e. takeover) if things got really bad. Nobody did.

Reaper

equitydealer wrote: »

What? Woolworths
Why is that risky? The company was seriously stuggling against competition, mostly online stores, but if it had implemented a new business plan and closed down some of its loss making stores it could have recovered. Woolies tried to do too many things without being the best at a few (apart from pick 'n mix!)
Why did I do it? Rewards would have been big if Woolies had pulled it off.
Any regrets? Yes - I should have looked at the assets v debt, I got carried away with the famous name and thought someone would come in to rescue them (i.e. takeover) if things got really bad. Nobody did.

I have a few High Street retail shares now because they are cheap and out of favour - HMV, JJB and Debenhams. But worth remembering like Woolworths there is no guarantee they will survive regardless of how big the name.

In the end we have to form an opinion and go for it. It may turn out I made the wrong decisions but the tiny porportion of my investments in risky shares is really just for fun. If I get it wrong I'll kick myself and (like you) work out what I overlooked so I can learn from it, if I get it right I'll use the profits to treat myself to something nice.

tocsin

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