GLEN - two alternative trading strategies10 Sep 2019 18:23
Hello chaps and chapesses, Glenda has her obvious charms but fickleness and broken hearts as well:-) With the puzzlement sometimes evident here in spite of bravado, it may be worthwhile to share my own two different strategies as mature private investor able to sleep soundly, though these aren't recommendations.
Her key magic is that you are almost on equal terms with the market makers and professionals - no stamp duty due to Jersey registration and hardly any spread. Glencore inhabits a select club shared as you've found with CEY, PFC, WPP and more loosely with the largest AIM shares.
I often ignore excellent days like today, I choose the sell - sell days when traders are miserable over Trump, Brexit, interest rates, exchange rates, even copper prices being down on the day, GLEN is more than that and a lot is already factored into the price paid. My last large buys were during that awful mine invasion, some nominally huge value was knocked off the company's value and it took three working days to bounce back, professionals and their computers making decisions in a fraction of a second have different agendas, not even worth trying to copy them.
Next, trust Ivan Glasenberg if you can, he's been in this far from gentle arena for a long time and has a lot of "skin in the game" so his interests run in parallel with yours. I only invest money not needed for other purposes, so in practice after other sales, recently from TW. and a small property investment. I invest more than I really want in GLEN on the chosen day:
1. All ££ starts life in theory as a medium-term investment as I just don't know which way the share price will jump, the world is too complex to know that from day to day. But GLEN will pay me 6.7% into ISA or SIPP to wait and see or almost five times the rate on an easy access cash ISA. The buybacks - usually currently every day at present - are a hidden long-term reward boost as well. The current price area still looks good value to me as holder for several years but I would say that wouldn't I?
2. Often the gloom isn't justified at all, lo and behold all is sweetness and light again, and you're up a few percent, if another prospect arises after I've over-invested in GLEN, I typically profit-take one third, again almost at market makers' rates and keep the profits along with the dividends to balance possible negative times.
3. By the law of averages, at some stage you probably have to medium-term hold with a paper loss and the rewards above are compensation - that's equity investing unless you're very lucky :-) Only twice in two years have I got in anywhere at 10-year lows, and by chance and not here!
Transparency - holder of GLEN for about 20% of portfolio, still some way off £-6-figure but I may get there. No other huge miners, but CEY profits taken too early and two successful AIM ones held & written about and a third with prospects only. Good luck, hope of interest.
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