UK Investment SIPP blog for the longer term

I have had a bit of time to really do some  stock research and tighten up my portfolio a bit.

Only stocks where I have completed a detailed analysis were candidates, and I have invested in three of them, being UK Coal (UKC) 51p, STVG (STV Media) 95p, RGD Real Good Food Group 19p.

All of these stocks are turnarounds and have their own unique stories.

UK Coal have been in the pits recently, but given that they have completed a 100m placing and production problems may well be behind them, they could see a big up tick in revenues. Coupled with them selling aggricultural land that is rising in value and apparently in demand, they could well be on a forward pe of 1 or 2. Forward coal prices are rising as well and land values could be rerated in the next few years providing profit. But risks remain. Production targets may not be met or the land sales are bad. I like this share and so does Crispin Odey ’s hedgefund and a few other long short funds such as Pelham.

Also, STV have had a hard time of it in the last few years but is on a forward pe of three, as they have disposed of a major cash drain, Pearl and Dean – the movie advertisers. Management looks good and this could do well. Certainly well higher that the 95p. Could be doubler. Risk includes law suits from ITV. STV have filed law suits to ITV as well.

Real Good Food is another turnaround. A very small stock that you cannot put in your ISA, but they sell food into major supermarkets and look to be on a forward pe of 2. If you read their RNS’s you will get an idea of why these stocks could rise nicely.

I also put some money in ACTA (fuel cells) as well as Raymarine and I would suggest that buyer beware with these ones, as the first is speculative and the second is under an offer period for a takeover.

Under no account am I recommending any stocks here, I am just putting down in print what I am buying as it helps my investment decisions.

Suddenly, there’s weakness on the FTSE front with warnings of ‘W’ shaped recoveries and the expectation of a bumpy ride throughout the coming months.

Elsewhere, BA are spreading fear in their attempt to feed from the tax payer begging bowl. 

I couldn’t care if BA survive or not. They are a private enterprise and shouldn’t get government funding. They have always had the worst attitude, with their cabin staff being old and jaded. Try Singapore Airlines, or Cathay. You’ll see the difference.

But all is not gloom.

Interestingly, the Council of Mortgage Lenders advise that less mortgages are in arrears. This will surely help to limit losses in Lloyds’ mortgage portfolio a.k.a. the HBOS self certification mortgage portfolio. There was also talk of Lloyds selling assets of over 100 billion, possibly the very same mortgages. If these things happen, and the HBOS mortgage portfolio is improving not deteriorating, the future will be a whole lot brighter for the black horse.

Personally, I have set my mortgage capital repayments to the highest I have ever repayed, and I am sure many others are doing the same in these tough times. If others are like minded, the deposit side of the balance sheet should be recovering.

Downside risks are defaults on credit cards and unsecured personal loans.

So, I’m going to load up on Lloyds again in the weakness. Bought some more at 67.

Surely Jim Cramer will have to resign or face the sack after being exposed in his own moronic video as an alleged market manipulator, a serious securities crime. His next week will be bumpy. Fellow presenters will shy away from him incase they are associated with his tricks and pulled into his credibility black hole. I feel that the US public may demand a public hanging.

However, surely the whole CNBC network is to blame. CNBC Executives should be first in the villification cue, but they will push Cramer’s neck out there first.

I’ve made a couple of new purchases for my SIPP that I thought I’d mention. I’ve bought RBS and Lloyds quite aggressively. My reasoning is that the government has insured their toxic assets. Also, Lloyds may find that it quickly starts to get cashflow from Joe Public as they are such a big mortgage player and that the public are repaying their mortgages as fast as they can. Therefore, I don’t see Lloyds going out of business.

RBS on the other hand is a more risky prospect as so much of past revenues were made from investment banking. However, as long as they are not nationalised, there could be great upside. I got in RBS around 20p and Lloyds around 50p. I put the biggest proportion into Lloyds.

P.S. my SIPP is now around £11,000 – I’m now nearly immune to the losses.

Terrible, terrible. Thats all I can say. Please don’t mock though.

 Small Cap stocks really took a hammering.