April 2017 ROLLING P&L
Here is the summary as at 30th April 2017. The average stock tip has delivered 24% return Inception to date, with 88% of my 27 tips in profit. On an annualised basis the average tip is 366%.
As was the case with March, 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 an investor (likely following the research note) and the lack of further financing news for the completion of the mine. I wrote an article a few days ago here explaining why I still believe a share price target of 71p is achievable though.
Regarding Sterling Bonds; I have seen nothing to indicate that my belief of a due correction is incorrect. Patience required here in my opinion.
On the portfolio boosting side, Sirius Minerals looks finally clear of the placing overhang and the share performed well on positive construction news and a move to the main market. The EasyJet position was closed in the month after reaching my target and returning investors a respectable 18% in 2 months, i.e. 98% on an annualised basis.
The full report is here: