Single Equity Loss

Thrugelmir

Kendall80 wrote: »

This share does seem to have behaved very oddly. I'm not entirely convinced that there aren't some shenanigans going on!

I would have concerns over any business operating in Nigeria. Not the same standard of corporate governance as in other markets.

Kendall80

Thrugelmir wrote: »

I would have concerns over any business operating in Nigeria. Not the same standard of corporate governance as in other markets.

It is actually a listed FTSE 250 company. However I'm certain it no longer meets the criteria at the very least in terms of Mcap.

Kendall80

masonic wrote: »

Looks oversold, you could still make it back if you get your average down (j/k)

I hope you didn't lose much. It's pretty painful to see a holding decimated like this, but as you say there will be people for whom this will be lifechanging in a very bad way.

If I double my holding I could get my average down to 11.5


However, I'm pretty sure the wife would introduce my head to her shiny new frying pan!

Thrugelmir

Kendall80 wrote: »

It is actually a listed FTSE 250 company. However I'm certain it no longer meets the criteria at the very least in terms of Mcap.

Where a Company lists it's shares is a different matter to where it conducts its trade. Company's only have to have 25% of issued share capital free floating to obtain a LSE listing. Plenty of bad news stories with other listed companies that conduct their business outside of the UK. Anything with a Chinese connection spring quickly to mind.

Ifts

Kendall80 wrote: »

I shall go back to my dummy/practice portfolios and wait until I've built up enough 'play money' to make more of a go at it.

Thanks for being honest and posting about your losses on Afren, it makes a nice change because most just post about their gains which does give newbies the wrong impression (i.e. shares can only go up in value!?), as you have shown they can definitely go down and in some cases total loss.
Unfortunately it can and does happen but hopefully you have gained knowledge from this experience.

Ive mentioned before about my losses, the main one being 100% loss with Northern Rock (to the tune of £25K) BUT it taught me some valuable lessons one being that I could set that loss against gains for CGT purposes and I sold other holdings that I had done well with.

My loss with Northern Rock did not put me off from still buying individual shares (I know the general consensus is to start off with collective investments but being honest I've always done it back to front starting with individual shares, crazy I know!) and I'm glad I stuck with it as Ive got some shareholdings at the moment that would cover the loss on NR by 4 or 5 times (some like Easyjet and Sports Direct have been good to me over the years).

All the best with your future investments.

gadgetmind

Ifts wrote: »

Ive mentioned before about my losses, the main one being 100% loss with Northern Rock (to the tune of £25K)

I've never had one that big, but did lose a couple of £k in my SIPP on a single AIM share, and fell prey to a prepack with another AIM share. The only "tiddlers" I buy now are ones where I have *personally* done at least two days of due diligence.

I've also had paper losses in six figures on SAYE and other incentive shares, but that's all easy come easy go.

Gadfium

Kendall80 wrote: »

My first foray into individual stocks/shares has not gone well. I elected to invest in Afren last week with a view to an upcoming takeover/merger. It dropped 70% today alone and 90% overall.

I think i'll stick to funds!

You took a gamble and you lost.
Not different to sticking it all on red or on the nose at the 3:30 at Chepstow :eek:

Glen_Clark

Gadfium wrote: »

You took a gamble and you lost.
Not different to sticking it all on red or on the nose at the 3:30 at Chepstow :eek:

Its a bit different because the odds of winning are not so slanted against you with shares.

racing_blue

Gadfium wrote: »

You took a gamble and you lost.
Not different to sticking it all on red or on the nose at the 3:30 at Chepstow :eek:

Quite different to sticking it all on red, where the odds of winning or losing are known. 19/37 times you lose your stake and 18/37 times you double your stake. Always an irrational choice in terms of preserving or increasing your money.

Buying a share may be (should be) a very rational choice.

EdGasket

racing_blue wrote: »

Quite different to sticking it all on red, where the odds of winning or losing are known. 19/37 times you lose your stake and 18/37 times you double your stake. Always an irrational choice in terms of preserving or increasing your money.

Buying a share may be (should be) a very rational choice.

That is not quite correct. On European roulette you double your stake on 18/37 outcomes, lose it on 18/37 outcomes, and lose half your stake 1/37 times when zero comes up.