2021 - A NEW DAWN AWAITS
So here we are, January 2021 and still in lockdown. Things can only get better.
They certainly are in the stock market with our portfolio rising substantially this month.
We held our usual Zoom meeting on Wednesday and made some strong decisions.
Having not bought in December we had a little money in the bank. Adding to this we sold all of our Hotel Chocolat holding on the basis that the Christmas buying period is over and it is a luxury product which may struggle during lockdown. We can always buy it back and will watch the share price with interest.
Together with this we sold a small amount of our profit in FeverTree, our star share.
It's always good to lock some money in - profit on paper is just that!
Let's look at some of our shares:
AB Dynamics: This is one of our new AIM shares and has increased considerably over the past couple of months. AB's driverless system was recently tested on commercial vehicles for the European market with good results. Apparently there are more claims from accidents involving delivery vans than any other section in the motor industry. A definite hold for now.
Clinigen: At last this share has started to move in the right direction despite being affected by the Covid virus which is delaying hospital treatments many of which use its products. Let's hope it continues on its upward trend.
Codemasters: Unfortunately the American video game publisher behind the Grand Theft Auto series has dashed investors’ hopes that it will wage a bidding war for Codemasters and has walked away from a takeover of the British developer resulting in a halt in the surge of the share price. Electronic Arts is now likely to succeed with its £945 million takeover of Codemasters unless another bidder emerges.
However we mustn't complain having already made an 85% profit on this share since buying in March 2020. We are holding and watching.
Dechra: Another share doing well. It had a fantastic surge in its share price this month after a stronger than expected trading performance. Outlook for the next year is ahead of management expectations. We are holding this one.
Reach: The past six months have seen this share move from 66p to 201p. An amazing increase. Management say that it is on course to exceed expectations in 2021 with the digital market boost. Another hold.
Many of the above shares are from the AIM market which is not the right place for anyone who is not prepared to take a risk. After 21 years the China Dolls are happy to do this, but we have often had to wait a long time for good results.
Decisions this month:
Having sold all of our holding in Hotel Chocolat and taking a small profit in Fever Tree we had some money to spend.
We decided to add another £1000 to one of our newest holdings - Vestas Wind Systems which is performing extremely well.
Then we decided to go for broke investing £2000 each into two AIM shares we are confident investing in.
AGRONOMICS: Agronomics Limited (LSE: ANIC) is an investment company that is focused on opportunities within the nascent industry of modern foods, which are environmentally friendly alternatives to the traditional production of meat and plant-based sources of nutrition. In the past month their share price has increased from 10p to 15p. We discussed this share months ago when it was sitting at 5p. Hindsight is perfect sight, so we thought we'd get on board now.
Sylvania Platinum: whose core business is the retreatment of PGM-bearing chrome tailings. The group has a low risk profile which is underpinned by skilled management, low costs and a focus on cash generation and returns to shareholders. Its aim is to be the leading mid-tier, lower unit cost, platinum group metal (PGM) mining company. In the past month its share price has increased from 77p to 110p.
That's it for this month. Happy New Year everyone. Let's all be positive for 2021
The China Dolls is a group of private individuals who meet regularly to discuss investment strategy and make investments based on the collective opinion of the the group.
The China Dolls is not in the business of offering any form of advice on investing or other financial matters.
The content of this blog is not to be considered an inducement to trade as we trade and is offered for illustrative purposes only.
Any use you may make said content is entirely your responsibility and The China Dolls will not be held liable for any losses you may incur as a result of using this blog to help you trade.