One month on: the good, the bad and the ugly.

I’ve been surprisingly busy so far this summer, hence I haven’t been updating my summer goals as much as I would have liked.

Alas here is my second update:

On www.bullbearings.co.uk (The FTSE/AIM simulation) I’ve made three transactions since I last posted.

The first one was downright ugly, stupid and a gross overreaction. Basically what happened was that in one day Tullow saw a +5% dip in share price following the news that the ugandan government wasn’t sanctioning a license given to Tullow for one reason or another, with Tullow being so involved in the African continent it could have had big consequences, I sold off all my shareholdings in Tullow on the spot for a loss of £1,394.25, a gross overreaction as in the following weeks (while I was away) the share price recovered and surpassed the point at which I had originally purchased the stock.

Once I came back to Ireland (on the 20th) I had a think about it and thought about why I had such a reaction to one piece of bad news. It was an overreaction and I jumped back in and bought about 40k worth of Tullow at 1132p, five days later and it’s up to 1223p given me a paper gain of £2798. All is good again and following more positive news regarding new oil finds. I can’t see Tullow leaving my portfolio for a while in any case.

My second and third transactions (with the third enabling me to purchase some Tullow again) concern the Aegis Group, a london based company involved in in Media and market research. A few days after selling Tullow for the first time, I had imaginary money burning an imaginary hole in my imaginary pocket. I was eager to find something and so did a trawl of some investing forums and found Aegis Group  Plc, one single post (and some follow up research from myself) convinced me to lump on it.

Here’s the post from a very knowledgable poster who I have a lot of time for

Aegis Group is an international media and market research holding company, fifth in size of the advertising agencies, ahead of Havas, and behind the ‘Big Four’ advertising agencies, WPP, Omnicom, Publicis Groupe and Interpublic Group.

The Company consists of two global marketing services segments, Aegis Media and Synovate. Aegis Media is one of the world’s leading independent media communications networks and provides media planning and buying, communications planning and digital advertising services through two principal media networks (Carat and Vizeum) as well as a leading outdoor unit (Posterscope) and a digital and interactive media network (Isobar). Synovate is a market research group, primarily focused on providing custom/ad hoc research services to companies globally.

Just less than 30% of the Aegis Group equity is controlled by Vincent Bollore, one of France’s richest men who is also Chairman of Havas, with a 33% controlling interest in that group. In my opinion, Havas will pitch for Aegis this year – combining the two companies so they can compete better with their much larger competitors.

Even if Havas does not attempt a takeover the company has booked a record amount of new business in the past 12 months, has recovered strongly from the recession and has the second highest exposure to digital media of all the agencies.

And I was in, I sold off 40000 of an original 74420 shares bought three weeks previously to enable me to buy Tullow for the second time. On the 40495 shares, I made a profit of £2,592 and currently my remaining shares are showing good profit of £4,647

So there we have it, my bullbearings portfolio is at a year high and everything is looking good. I’m ahead of the FTSE index and hopefully that is the way it will stay.

I’ll do a post on my investopedia NYSE fortunes in the coming days.

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