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Over the years I've held many different securities in the DIY Income Investor portfolio. Most holding come and go, falling out - that is the nature of the portfolio: buy low (with a high yield) and sell high (with a low yield).
But some (a very few, it has to be said) shares seem to be perennially yo-yoing up and down - as well as having an attractive yield.
I've held my favourite dividend share for many years - buying and selling it repeatedly: it has netted me thousands of Pounds of profits, for which I am very grateful. (If you use the Search function on the right hand side of the blog you can see some of the related posts.)
It is an unusual company: Anglo Pacific Group (LSE:APF) doesn't make or sell anything, but instead buys the rights to royalty payments from mining company sales. As such, it is essentially a play on mining activity around the world, in particular coal mining. The Market's view on this sector swings quite violently, resulting in big changes in the share price.
I sold a bunch of APF in 2016 netting a five-figure Sterling profit - but I still had a 'legacy' holding from 2014 (which I had obviously bought at the wrong time in the cycle - i.e. too expensively). But, watching the share price recently I noticed a big dip in the price which did not look right to me.
Fortuitously I had just cleared out a poorly-performing holding (Huntsworth) so I had a fairly big chunk of cash sitting on the sidelines. Taking a deep breath I put it all into the apparently under-priced Anglo Pacific.
Two days later I am looking at several thousand pounds in (paper) profit from that purchase (without including the gain on the existing holdings) - with the expectation of more to come. The portfolio has hit an all-time high valuation again.
[Purchase price: £1.059]
I am not a financial adviser and the information provided does not constitute financial advice. You should always do your own research on top of what you learn here to ensure that it's right for your specific circumstances.
Well, no-one could accuse you of not putting your money where your mouth is. I wish I had done the same stuff with APF instead of more or less the opposite!!
ReplyDeleteHi DIY,
ReplyDeleteI am glad I am not the only one who buys stocks in the cycles but if you can keep at it and do some regular trades and net a good profit, it's got to be good!
Thanks as always for sharing
FiL
How do you know when is a good time and what is a good price to buy Anglo Pacific Group? Thanks
ReplyDeleteHow do you know when is a good time to buy and a good price for Anglo Pacific Group? Thanks
ReplyDeleteHi Mark - I use my Buy and Sell rules, which you'll find in my blog posts. Basically I buy then the yield is attractive (6%+) and the price is relatively low (which includes looking at the price charts and checking out for any bad news in the accounts). I usually sell when I have made a capital gain equivalent to 5 years' income. If it doesn't work as planned I might have to sell at a loss or hold onto something until it recovers.
DeleteI am watching the price myself and may buy some. Is the company relatively strong to sustain such a good dividend? I will look at your buy and sell rules to help me in my decision. Thank you for such a great website to help investors
ReplyDeleteTheir revenue comes from royalties from minerals sales, which looks robust at the moment, as far as I can tell :-)
DeleteLuckily I kept hold of the APF which I uncleverly bought at the top of the last cycle. Lo and behold, it's back up into profit over the last month or so. But when is it topping out and can I get the old monkey cerebrum in the frame of mind to sell it at the right point? These are the questions.....
ReplyDelete