£50 Shares Punt.

Steve182

Have a look at Scotgold Resources. They've been developing their gold mine in Cononish, just north of lock Lomond for a decade now and finally it's become profitable. It's one of the worlds highest grade gold mines, albeit small scale at the moment. 2023 should see £10m net profit whereas the company's shares are only worth £45m currently. They hold exploration licences for a huge area of the Grampian region of Scotland which is highly prospective for gold, possibly one of the worlds most prospective areas. Now they are finally profitable their next phase is exploration of the Grampian region with a view to building more Scottish gold mines.

Podcast with the CEO https://www.thearmchairtrader.com/podcast-scotgold-resources-lse-sgz/

Nurse2047

I put any cashback on Quidco into freetrade, I quite enjoy it- it’s very small amounts however. I tend to go for dividend stocks 

Farmers-wife_2

Thank you for all the replies - even the snarky ones...

The £50 generally comes from money I've made online (or the times where I've taken lunch into work rather than used the canteen). This was just meant to be a fun gamble in the same way some people spend £50 a month on lottery tickets. My real savings are invested in a risk-adverse way.

Thank you for all the suggestions - Will look into them over the weekend. 

Voyager2002

Farmers-wife_2 said:

I've a little money leftover each month (After paying into pension, S&S ISA etc.) and thought I would pop it into Freetrade. We're not talking much here, possibly about £50 a month. It is just fun and were the money left in my account, it would get frittered away on coffees and cake. 

Were it you, in which company would you invest your £50?

*Obviously, I understand this would be completely my own fault should I take any suggestions and as stated above, is just for entertainment purposes. 

Look back on this board for the threads on taking a punt and on investing in Biotechnology. This is something that I have done, but on a rather larger scale than you, and I have learnt that my risk tolerance is rather lower than I had thought. For instance, my holding in Evofem suffered a 99.9 per cent loss (that is not a typo: my ten thousand dollars became just ten dollars at one point!) and I wish I had never heard of them.Arrowhead was probably a reasonable bet at the price I paid, and their shares are much cheaper now while the therapies they develop are still producing impressive results in clinical trials.

At the other extreme, Greencoat (UKW) is a company that seems almost risk-free: they face a combination of rising prices for their product (power); falling costs for the equipment they need; and UK government policy protects them from competition. There is a similar company operating in Ireland whose shares are listed in London on the AIM.

NedS

Voyager2002 said:

At the other extreme, Greencoat (UKW) is a company that seems almost risk-free: they face a combination of rising prices for their product (power); falling costs for the equipment they need; and UK government policy protects them from competition. There is a similar company operating in Ireland whose shares are listed in London on the AIM.

I don't think you fully understand the risks.

Granted, UKW have experienced many tailwinds (no pun intended) in the last 12 months with rising power prices and rising inflation, but there are still many risks. Supply side pressures and rising costs will affect the cost of building new wind farm assets. The NAV is largely driven by power prices and inflation, which are currently high and are reflected in the 25% rise in SP/NAV over the last 12 months. If/when they reduce, the NAV will be negatively impacted so you may be buying at a SP high (with a concomitantly reduced dividend) to then experience a large capital reduction once prices normalise (that 5% dividend may not seem so great if you experience a 25% drop in SP over 3 years). There are also operational risks and fluctuation in wind levels, not to mention the risks of an Energy Producers windfall tax currently being explored by the UK government, which would hit UKW a lot harder than other producers who lock in future revenues with PPAs to minimise volatility and are less able to benefit from the currently high power prices.

It may seem like a safe 5% income stream without risks, but that is simply not the case. Personally I see more downside risk than upside for the UKW SP, which is probably reflected by the fact UKW is trading far closer to NAV than it has done for the last couple years.

(Note: I currently hold UKW)