SBM PORTFOLIO UPDATE

It’s been a good year so far for SBM’s portfolio and hopefully for our readers who followed our calls! Take a look at our About Us page for a concise list of our Conviction Calls and Trading positions – both open and closed.

Here’s an update on our thinking on some of our Open positions – 

Research in Motion. Conviction Buy $13 – April 23 2012. Current Price $7.20.

This is pretty much the singular trade that we have got wrong this year with the stock halving in price from our entry point. Regular readers will be aware however that this publication is a BIG advocate of measured leverage and so allowing a trader to weather a position that goes wrong and, if the circumstances are appropriate, step back up (as we did with Nokia at the nadirs around $1.65 two months ago). With RIMM, we think the same circumstances now apply and find the divergence between the stock price and the MACD, sharp rebound from a double bottom and heavy volume last week interesting. With 2Q results on 27 Sep we are targetting the gap in the stock chart at $9 as a near term target. Accordingly, we ADD to our Conviction Buy today and double our position size.

Daily RIMM chart

Bowleven. Conviction Buy 59p – Jun 6 2012. Added to position – 30 Aug 2012 @ 68.5p. Current price 72.5p.

We are very happy holding our Bowleven shares here and point new readers to our feature on the stock in the July edition of our magazine, page 52 – link here – http://issuu.com/spreadbetmagazine/docs/spreadbet-magazine-v6_generic)

Nikkei 225. Conviction Buy 8600 – Jun 21 2012. Current value 8843.

We have taken money out of the Nikkei already this year in our portfolio but recently re-incepted a core long position as we expect the Japanese market to be in the vanguard of global equity markets advance throughout the balance of this year and into 2013.

The Japanese stock market has been weighed down recently principally due to the slowing of China – it’s major trading partner aswell as the strong yen that dampens exporters competitiveness. In the forthcoming issue of our magazine we have a special feature on China & how to play it (make sure you subscribe to the right in order to ensure you receive this “hot of the press” a week on Thursday) and the Japanese market is one way with a high degree of correlation. See our weekly chart below on the Shanghai Composite and which we think is in the very early stages of a meaningful rebound and that the index has just completed a 5 wave elliot count per below. Consequently, we have added to our Nikkei Conviction Buy today at 8850.

Shanghai Weekly chart

Ceres Power. Conviction Buy 5.2p – Aug 3 2012. Current Price 11.5p.

Ceres was covered in our July edition too (Link here, page 16 – http://issuu.com/spreadbetmagazine/docs/spreadbet-magazine-v6_generic). We have additionally update on the stock if you check our tabs to the right under Ceres Power. Having spoken with sources close the company last week, we believe that a funding update is due shortly and that it is not likely to be as dilutive as many investors feared. We believe Ceres to be a proper potential 10 bagger candidate over the next couple of years as they near market launch of the revolutionary fuel cell boilers.

Out of our open Trading positions we offer the following updates – 

Lonmin – Trading Buy @ 658p – 16 Aug 2012. Current price 613p.

The rationale for the Lonmin Long trade entry was premised upon the expectation that they are likely to prove an attractive candidate to a potential bidder at the current market capitalisation of £1.2bn. With Xstrata holding just under 25% then we expect some type of corporate activity upon the consumation or otherwise of the Glencore merger/takeover. Lonmin is to feature in our special Mining focused edition this month, due out a week on Thursday – register your email to ensure you receive this.

ENRC – Trading Buy @ 316p – 29 Aug 2012. Target 340p. Raised target – 360p. Stop 316p.

ENRC is also to be included in our special mining focused edition of our magazine. This trade is working out nicely and we expect ou target of 360p to be hit in the coming days as the stock has been excessively oversold. Here’s our resident Technical Analyst’s webcast overview on the stock from just over a week ago – http://www.spreadbetmagazine.com/blog/2012/9/1/dominic-picarda-weekend-webcast-on-enrc.html

To register your interest in our forthcoming “Follow me” funds which will allow you to replicate our trades with our partner spreadbet firm in a variety of dedicated funds – Oil Explorers, Natural Resources & Global Macro – email “FOLLOW ME” to editor@spreadbetmagazine.com. Unlike many “tipsters/advisers” – we have our OWN money on the line in these funds.