MARCH 2017 ROLLING P&L
Here is the summary as at 31st March 2017. The average stock tip has delivered 22% return Inception to date, with 88% of my 27 tips in profit. On an annualised basis the average tip is 363%.
The principle detractors are is my short call on Sterling Bonds (SLXX) and longs on Ovoca Gold and Berkeley Energia (OVG). On the longs I currently on Ovoca Gold ‘under review’ as I made a critical mistake in not fully reflecting on the size of the director holdings, which indeed give them a blocking share. This means poor performance is tolerated and chances of shareholder activism are limited, I have had no response from the board despite my best efforts to contact them despite by best efforts. The share price is still significantly below book value but it is hard to see a catalyst for a re-rate towards fair value when the board refuse to pull their finger out of arse…
Regarding Berkeley Energia (BKY), the market was spooked by a bearish broker note, the exit of BlackRock as a share holders (likely following the research note) and the lack of further financing news for the completion of the mine. My understanding is there is no huge rush to complete financing as there is plenty of money in the bank to get ‘spades in ground’. I plan to do another blog piece in April looking at BKY in more detail, but with the shares back below 50p this could be a buy, especially with the promising exploration news.
Regarding Sterling Bonds; I have seen nothing to indicate that my belief of a due correction is incorrect.