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PHARMACEUTICALS


This month we discussed investing in a pharmaceutical company. There are many large companies out there where your money will be quite safe....Astra Zenica, Glaxo to name a couple. But we decided to invest in a small AIM share recommended by Questor in the Telegraph. The company is called The Clinigengroup. A summary of the share is detailed below.


https://www.clinigengroup.com/company/about-clinigen/#:~:text=Clinigen%20(Clinigen%20Group)%20is%20a,people's%20lives%20around%20the%20world.

1.  It supplies drugs for clinical trials which are outsourced by Big Pharma to specialist firms. 

2. It sources unlicensed medicines that can be prescribed in special circumstances to named patients.  

3.  It has a commercial medicine arm, which contributes 44% of profits.  It buys licences for drugs nearing the end of their life and finds new uses for them.  Namely Floscavir and Proleukin, the latter treats melanoma. 

Questor says the share is a long way from being counted as a member of the Big Pharma club but is big enough to prosper.  Shares trading on 11.3 P/E and are worth a punt.

We began cautiously investing just £1000 and will follow this share until we are comfortable with investing more.


We also decided to have a "clean up" of our portfolio.

The decision was made to sell our two oil stocks....namely Hurricane and Tullow. We have lost money on these shares and, in the current climate, we do not think they are heading anywhere. Better to cut our losses and invest elsewhere.


Diageo: Having made quite a nice profit on this share we sold half of our holding to add to our funds.


Decisions:

We invested into some of the existing shares in our portfolio which have been doing well and which we hope will improve in the current, uncertain, times.


Segro: A fairly new addition to our portfolio which hase already increased by 25%

Codemasters: Up 20% at the moment...............here's hoping for an improvement

Unite Group: Up 70% since purchase: with the students returning to university there's a chance this share will shine.


A brief summary of a few of our existing shares:


ABF - At our meeting the share price was sitting at 1956p - it is currently 2038p and has been given a target price of 2300p by Barclays.

Dechra: This has at last broken through the 3000p and is sitting at 3220p today. It has been given a target price of 3515p by many brokers.

SmithDS: We continue to be confounded as to why this share is not doing better. It supplies packaging for many companies including Amazon and should be soaring in the present climate of on line trading. We will hold for the time being and hope it starts to improve.

Tristel: We are disappointed that this new share has not performed as well as we hoped. But will hold for a while longer.

Ocado: Is linking with Marks and Spencer instead of Waitrose. Waitrose are ceasing to use Ocado and are going to start their own delivery service, whilst also trialling Deliveroo from 5 of its stores. However we are holding Ocado primarily for its expertise in technology which it sells around the world, so we are hanging on in there.


DISCLAIMER 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.












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©2019 by China Dolls Investments Club

©2019 by China Dolls Investments Club