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garethbrierley19,
SQZ is very good quality share like BLUE FIN fish
you are a very smart investor
buy low sell high
experiences told me
whatever how good the shares are, it will come down following the whole market trend
No matter how good fish it is still maintain inside the ocean
selling high buying low , cash is the King
IMO
Hi garethbrierley19,
Looks like you made the right call! Of course, you could always rebuy, pocket the difference and then get the dividend! ;-)
ScottAJ
Hi gareth - you have, indeed, been very lucky with your recent selections / timings and we all need some luck in this game, of course...
Given your apprehension about the short term outlook for the mkts generally (with which I agree, fwiw) keeping a good cash cushion in hand for a while seems sensible.
As to where one might reasonably invest some cash defensively, short term, is difficult to gauge - one such area worth considering, I guess, are precious metals producers; like your earlier Randgold involvement.
When peeps become anxious, they often turn to gold as a relatively 'safe haven' and with all the phenomenal Q.E going on nowadays, fiat money is continuously being devalued. I prefer the producers paying decent dividends rather than the 'wannabe' miners currently, although one of the latter, PUR, the upcoming Canadian miner, is still 'under the radar', imv and well worth a look, if you're interested. ATB - sasa.
Thank you, I have been very lucky in that in the last few years three major investments have come off incredibly well for me (RRS and then Barrick Gold; Serica and Vanguard LifeStrategy 100 fund). I got very lucky with my timing with RRS as I got in heavily a few weeks before the Barrick deal was announced, and I invested heavily in the Xmas 2018 crash with LS100 and also late March 20. Which are now seeming to be the ‘lows’ although I realise that trying to time the market is a fools pursuit. I just got lucky. As for my cagr I have no idea as I can’t access my spreadsheets which are at work under lockdown. They’ll need a lot of updating when I return!
Sasa - I always appreciate your views as a wish head with lots of experience. I don’t post hear often but I lurk every day and very much value your input. I’ve always been attracted to Vanguard LifeStrategy 100 and I also have a fair chunk in one of their active emerging market funds (which has underperformed for me, but acts as my ‘exciting’ fund which has potential upside). I wasn’t aware of the difference that you have identified so thank you for pointing it out - I’ve only got a passing knowledge of the debacle re: the Woodford fund, but enough to know I would never wish to be involved in a similar situation.
Ps - I’m sitting in cash with my serica returns for now rather than investing in more funds. My gut feeling is that we’re due another correction and it might not be pretty or rebound as fast next time. But what do I (and any of us) know! With interest rates so low where else are people supposed to put their cash...
Garthbriely
You've done incredibly well . you've got 20 years on me. Without sounding impertinent what is your cagr since starting investing. Your right about opportunities arising. opportunities which have arisen during the past few months generally only come along every ten or so years.
Sasa
I know your post is directed at another poster, but that is sound advice. that's the route I will be going down once Serica reaches its frutition. Along with bricks and mortar. Together with land if my investments survive these unknown times
Hi gareth - just seen your reply while I was responding to IAmNot...
You've done very well with your Serica involvement thus far, as you readily acknowledge and you still have a good position to benefit from any further appreciation, so congrats on that...
Diversification is invariably prudent, especially when mkts are very high, as they are now. So your strategy is sound looking ahead, imv - I wouldn't be too keen, myself, to rush into global trackers right now, for that reason - when mkts fall, just about everything else does, too.
As a retired stockbroker / investment manager, I'm no longer permitted to give advice these days and certainly not on a public BB like this where your circumstances are unknown to me and you might not welcome my general comments, anyway...
Just a pointer, though (not advice) where domestic 'collective vehicles' are concerned - it's usually better / safer to go for the Investment Trust rather than the Unit trust route in gaining wide spread exposure (i.e the quoted closed end fund rather than the unquoted open ended alternative) to avoid the risk of being 'gated' against selling (a la Woodford) when you want to.
Hope that 'tip' is useful, nevertheless, if you weren't aware of the difference and good luck with your investments henceforth - sasa.
Hi IAmNot - thanks for that; yes, given the location / potential of these two NS operators (Gas / oil & Oil / gas) they're almost unique in this space it seems to me - was in GKP a long time ago now but the susceptibility to interference in that part of the world certainly put me off staying involved there.
The only difference between these two, I suppose, is that Serica's more vulnerable to an approach at some point, so such an event would likely solve the 'when to sell' question for the LTH's but it still leaves the redeployment dilemma - hence the question I posed.
A nice prospective problem to conjure with, though... sasa.
Hi Sasa,
Thanks for the Q, my circumstances are probably different to some on here in that I am relatively young (35). I’m under no illusions that I won’t find another serica again! I’d have to be very lucky indeed.
I’m planning to re-invest the money into global tracker funds (I already have a sizeable chunk invested over various funds). To be honest I’m quite happy to move away from holding individual stocks, I’ve made some pretty bad investments in the past and the Global trackers have been good (if boring!) investments for me.
I’ve still got 120k serica shares across my ISA and SIPP. So I’m still “in”, just with approx 80% less shares than a week ago!
Good luck and I hope the share continues to prosper.
Sasa, the only other similar companies I've seen are in Iraq and produce oil only. So a different beast in terms of product and security of income/production because of location.
SQZ and RRE are the winners for me!
Hi gareth - interesting quandary you now have, then. You'll be very fortunate to find anything comparable to Serica's performance for you over such a short time frame, so what do you plan to do with the proceeds? Just sit on the uninvested cash for now?
I ask only because several of us on here, doubtless, have fairly chunky holdings in SQZ, too. The problem arises that when we think it's prudent to realise a sizeable gain, where can we find a good alternative(s) offering such value / further upside as this (p/e 5 - yield 2.4%, ultra strong balance sheet etc.,) ahead of a clutch of positives in the pipeline, too? I've yet to find one myself...
RRE is a good comparator, certainly but anything else I might have missed elsewhere?
Genuine question / all ideas welcome for when the time comes - for me, anyway - sasa.
Good point and my decision may prove to be the wrong one, however the dividend would have been 10k compared to 185k profit for selling (my average was 74.5p). I’ve experienced a few unexpected drops with Serica in the past and for a three month investment I couldn’t argue with the return. If an unexpected dip happens I’ll potentially buy back in.
Why not take the 3p div - not long until ex div date
i love sqz
but my principle always are no matter
long term or short term as long as making money
buy cheap sell high
gla
garethbrierley19 - surprised you sold out now when you could have got a 3 pence dividend for holding for another 2 weeks? Unless you think the price is going to crash in that period of time?
Thanks for the advise NewKotb, much appreciated.
Just checked website:
"The Group uses derivative financial instruments, such as forward commodity contracts,
to hedge its commodity price risks"
Currently the natural gas prices on these contracts are significantly lower than currents ones.
Decided to derisk holding and sell majority. Will reasess when gas prices recover. GLA
Forgot to add the lunatic nation's are still talking so should boad well for serica.
Onwards and upwards newkotb.
If you get a chance and I understand if you don't could you cast your eye over the share that I use as my username. I don't think I am missing anything with them but would be interested in your views .
"Wonder when their hedges expire...."
Wonder what 5 minute research on the companies website with that treasure trove of factual information might reveal !
atb
Wonder when their hedges expire. Current gas price is rock bottom but any acquisition would be cheap.
Cashed out 350k shares today, didn’t expect to be able to sell so easily but there was high demand at 124p. Sold in a few batches, best price 127p.
Still holding 120k between ISA and SIPP but I was so overweight here I needed to take profit.
Thanks to Baron for pointing this amazing company out a few years ago!