Member Info for Dustbin101

As I previously mentioned my target returns are 30% compound .

Allowing 17 years to increase each £1.00 into £100.00.

One can use a compound interest calculator found on the internet.

In my case it’s a great deal harder to achieve, for the following reasons.

I have already drawn out of the SIPP pension around £878,000 and spent it. !

The pot is around £1.2M today, however £200,000 of that is in cash and £300,000 in Gold. ( within the pension )

The amount at risk is around £700,000.

That £700,000 needs to more than double very quickly for my 30% compound target to be achieved.

All eyes down over the next 9 months .

Take a look at these companies, where shareholders got yet another kicking in the teeth today. !!

KZG, HNG,DEV,DMTR,BARK,DCD,TRAF.

My. Purchasing criteria , would have ruled out an investment in any of them .

The city is out to rip off a good selection on investors.

I hope others can take on board my comments.

This is part of a press release from Stratis last week.

Chris Trew, CEO, Stratis, said: "Web 3.0 and blockchain technologies are changing the nature of gaming and influencing how games are being built. This survey shows we will soon see 'GameFi' and 'Play-to-earn' features in the latest AAA game releases, which will offer players financial rewards in exchange for their time and attention. People have long speculated about blockchain's killer app, well now we know, it's gaming."

He continued:"Stratis already offers an SDK to the Unity engine, and we are planning to add Unreal shortly. We're seeing hundreds of enquiries from game developers looking for scalable blockchain infrastructure, it's a level of interest we've never seen from any other industry."

Stratis is serving the needs of the Microsoft .NET community and can be deployed on Microsoft's IaaS platform, harnessing Azure's capabilities like storage services and enterprise service buses.

Stratis blockchain offers a platform for deploying decentralized applications incorporating 'smart contracts' for automated value exchange. Over $2 Billion in value has been successfully secured on the Stratis public blockchain by hundreds of decentralized sidechain master nodes. Stratis team has deep experience in enterprise technology, gaming, NFTs and DeFi. Today, more than 15 open-source projects rely on Stratis.

A few lessons I have learned along the way.

Start small and grow big , your potential maximum overall loss, will always be your original investment.

Shares are all about the future , never the past.

Think very long term , never under two years, more like five or ten.

Get out quick , ( even at a loss ) on any whiff of any accounting scandal.

Take zero notice of the constant market noise.

Have fun

After you have whittled down 99% of listed companies , you want that bit extra from your investment.

A killer potential profit source, that others have not seen, but you have.

Hence my current investment in TRD ( Triad Group Plc ).

TRD: has seen consistent director buying through 2021.

The directors are so keen they have even exercised options, without immediately selling the stock.

It’s traditional business is going great guns with higher margins and profits.

TRD also sits on a massive cash pile and pays dividends.

The rolling P E Ratio is under half the sector average.

TRD is premium listed on the LSE

To sum up, its incredible cheap based on the above.

However what the market has totally missed is its partnership agreement with Stratis Group Ltd, to offer BAAS ( Blockchain as a service) to clients.

Stratis blockchain is unique because it’s the only platform built using the C# developer language, running on Microsoft.Net.

Simply put, it’s the only blockchain language that does not have to be converted back from all the new blockchain languages, before it can be used . ( C# has been around 30 years).

Stratis has a massive edge, that only comes to light at the adoption stage, because it’s easier to use, and has millions of developers that can use it, ( new blockchain languages have tens of thousands of developers by comparison.)

What investors here might not know is 75% of all game developers use C# to build games, so it makes absolute sense for them to use Stratis.

Gaming is seeing 50% of ALL Blockchain adoption in the world today. ( inc NFT’S )

This week the boss of Stratis quoted the following.

“We’re seeing hundreds of enquiries from game developers looking for scalable blockchain infrastructure, it’s a level of interest we’ve never seen from any other industry.”

The point I am try to get across is this.

Stratis exponential growth can be expected over the next two years from the gaming sector.

Stratis have 3 other areas they are targeting.

1/ Enterprise ( through the TRD partnership )

2/ A U.K. Stablecoin.

3/ The supply chain.

TRD market Cap is £20M

Net cash is £5.3M

Without any contribution from Stratis TRD are on target for £1.5 - £2M profit in the year ending 31/03/2022

As yet another added bonus, both Stratis and TRD could be subject to corporate action in some form or another.

That’s because they are outstanding cheap, and have prospects that most companies have not.

No, I want to find companies that have a premium listing , but valued at peanuts.

My policy, is to try and reduce risk to a Minimum
I want the company to have no debt.
I want the company to have director buying.
I don’t want to be diluted with placings
I want super fast growth
I want a very low PE
I want a large % of the shares to be held by the directors.
I want fast growth in margins and profit
I want zero city institutions when I buy, lots of institutions when I sell .

Basically I want the cards stacked on my side when I purchase, simply to reduce risk.

Types of market listings on the London Stock Market

Aim

Standard

Premium

AIM is where your investing in rubbish most of the time.
These companies just fleece its investors for decades.

The Standard list is a slight step up, but not much.

The premium List is where companies have to run to extremely high standards. The FTSE 100 and some others fall into this group.

If possible your investment should be made here, to protect you from city boys that could drain your investments in the lower segments.

Sellers in a stock you own.

One can find a fantastic stock , buy it , and then watch it fall, simply because a seller wants out.

Undoubtedly this is the perfect time to purchase, the seller will eventually run out of shares to sell, and you can pick cheap stock, without driving the price ever higher.

One major issue to overcome is buying a substantial holding, when every man and his dog is doing the same. So don’t follow the crowd.

Often the seller has just got fed up or requires immediate cash, nothing at all to do with, how the company is performing.

Market sectors.

A few thoughts on this.

An investor wants to a company that has a very low P/E ratio.
That same investor, wants to sell the stock at an average P/E ratio, or better still, at a premium rating.

If a company increases its profits quickly and consistently its P/E ratio in theory at least, should improve and go higher.

So first you need to find sector P/E and make sure your not overpaying for a stock the day of purchase.

It’s the combination of dividends, increasing profits and the market rewarding your share with a higher P/E ratio that makes you rich.

By example

£1M after tax profit from a company worth £10M today = PE of 10.

That same profit, (£1M) on a PE of 40, would value the same company at £40M. !!

To sum up.

You want an unknown, unloved company, loaded with cash, growing fast , and paying dividends. ( on a low PE ratio.)

Then it’s just a waiting game ,after your purchase.

Rule 5

Time:

To make millions you need time on your side.
In my opinion trading shares is a mugs game, all your doing is paying the spread and commission time and time again.
As a rule it’s not easy to predict the top or bottom of any particular stock.
So I don’t even attempt to think I can buy at the bottom and sell at the top.
10 years can produce some spectacular results.

Rule 4.

Director holdings.

The vast majority of U.K. listed companies have a small % of shares owned by the directors.

Undoubtedly my best investments were in companies that had huge Director holdings, that paradoxically, the city often shunned.

It’s pretty obvious those directors want to succeed and are unlikely to bust their own companies.

They tend to think long term.

These stocks can offer extremely good value

Rule 3

Dividends

For a share to increase in value, one requires it to be attractive to the maximum number of investors.

A growing dividend is required, with ample cover.
The dividend can be various percentages of after tax profits.
Ideally, you want to find companies that can grow without massive investment on an ongoing basis. ( back into the company).
If that’s the case, not only do you receive regular income, but retained profits are held on the balance sheet as cash.
Cash is always king, giving flexibility to the business.

Rule 2.

Growth

Super fast, year on year growth in profits, will drive a companies shares higher.
The market also needs to be confident that the growth will continue for the foreseeable future.

That’s the reason house builders and car dealers are not highly rated today, even though their profits are excellent. ( Fears of higher interest rates and unaffordable prices, ).

Target growth should be at least 30% a year going forward.

This will attract new investors.

If one is to invest in a single company, reducing risk, while at the same time, going for massive growth is essential.

In essence you need as many cards stacked on your side, before you invest.
The very worst outcome is the company going bust ,when you still hold the shares.

Some golden rules .

Debt ( borrowings) are a two way bet, through their gearing effect, they can help to increase profits on the way up , but destroy the company fast on the way down.

Rule 1

Look for companies with a cash pile . ( it’s a safety net ,that can be found in within some listed companies.)

That’s cash after all debt, ( if any ), is covered.

Reason.

Even if your company suffers an unexpected kicking, it’s still in business ,the competition, is often wiped out ,due to its lack of cash to pay everyday invoices.

Since most of us now have several different jobs durning our lifetime , some find they have bits of pension scattered about the place.

I can’t give advice, but I can tell you small pots will never deliver anything other than the odd £100, - £1,000 pounds a year on retirement.

Those in mid life could transfer these into a personal SIPP pension ( after taking advice ).

Then you have the freedom to make your own investment choices, and increase returns.

One does not have to use a SIPP pension, an ISA with totally tax free returns, has some huge advantages over a pension.

The biggest being, you can have tax free access to your savings, at any time, so you set your retirement date at what ever age you like.

A SIPP pension comes in a poor second , most of the time , however on the plus side, when it comes to inheritance tax ,massive pots can be passed on ,to future generations tax free. ( A million pound ISA ,on death, will be taxed at 40%).

I personally believe a different approach is required.

A good starting point might be a £10,000 lump sum today, an amount that, if totally lost, when your still young , will not slaughter you.

Assuming you start by aged 30 , live, and retire at 60 , it gives you 30 years to build your pension. ( with ZERO additional funding through your lifetime).

Saying that, I did not start until I was aged 45 , which in pension terms, is late.

Risk, and perceived risk.

Putting all your eggs in one basket is absolutely correct, if you believe you have chosen the correct investment in the first place.

No different from buying your house, or choosing a wife, or new car.

Odd , don’t you think, that no financial advisor will ever let you do anything, other than spread your risk. ?

In doing so , it immediately reduces your long term rewards to the market average . ( up or down ).

The long term average will NEVER deliver a massive pension pot ,to retire on ,if you start will a tiny amount on day one.

Instead, Financial advisors encourage you to put a large slice of your wages each month into plans that make it impossible ( average returns ) to achieve your goals.

So at the end of the day , your lifetime standard of living is crushed , only to find at retirement, your pot is only going to payout a poxy pension.

I am not a financial advisor, but unlike the vast majority of them, I have consistently delivered.

Shares are not rocket science.

Most low cap stocks on the AIM and standard list, come back to shareholders, for more cash ,on a regular basis at ever lower prices.

They put out a “good” RNS that attracts buying , followed by a placing weeks later, at a massive discount, and screw shareholders over.

The growth rate most financial advisors target is about 7% P/A

Put simply, you need to do much better than that perhaps target 30% PA.

The perception is that you will be running a higher risk going for higher returns.

My experience disproves that.