Venture Life Share Discussion Threads

[apad] 01/1/2017 09:56

HELP!

red (or anyone else who can help!),

Wearing your accountant's hat, please comment.

Top Slicing.

If I sell some of a holding at a profit I reduce the cost of the remainder to reflect the gain from the sold portion. I record this as a reduced 'book value' and record the gain separately.

The capital gain is calculated using the price received and the original average cost.

If I sell again I still use the original average cost.

I have two companies that I have top sliced until I have received more than the holding cost in the first place.

This means that my 'book value' would go negative if I carried on the procedure.

In my spreadsheet I stop the 'book value' of these shares at zero.

I am now doing my tax return and realise that I am changing a rule in the middle of a process.

I am wondering whether my procedure will distort the accounts compared with how an accountant might present the same data, and whether there is a more recognised technique.

apad

ps
I have found a reference to a "last in first out" accounting procedure that, at first sight, seems to be different from the approach I have taken.

[lauders] 01/1/2017 01:15

Thank you Red! CLLN is one I will look at further for the high yield position I want to enter this year. I just need something that I can depend on to generate income while it sits in the QROPS for some time and helps build up a cash some but also pay the portfolio charges. This is all down to my company pension being moved into a QROPS wrapper so I don't have much say in the charges/options. So unless mod form comes out the blue with a US option or two to look at I think that it may well be CLLN or GSK at the moment.

On the matter of US options this may interest modform:

I have NO idea about US stocks!

PS. I buy and then when I reach 100% profit, 1-bagger, I now sell and let the initial holding run without worrying too much about it. I did this with BOO last year at a bit over 100% actually. So now I just intend to let the holding sit and hopefully become the next ASOS, but if things change then I can exit and still come out at a profit no matter what. May not be the best policy but I can sleep at night this way. Trouble is finding the next 1-bagger to invest the profit in!

[rp19] 31/12/2016 18:09

Many ways to skin a cat and I'm still learning the ropes. I don't have vast sums to invest and rather than fully commit to a position i often 'average up' after a period of time. Means I 'miss out' on some gains compared to if I went all in at the start but it does offer some downside protection.

[thelongandtheshortandthetall] 31/12/2016 17:30

Punch taverns being bought by heineken cant be bad for GNK Red.

Good luck all for 2017

[discodave4] 31/12/2016 15:41

As previous posters, thanks for sorting.Perhaps I'm lazy but tend to buy and sell on an all or nothing basis - if I've done my research, it ticks all my boxes and hits my entry level then why buy in small chunks, if it's right it's right, buying in smaller tranches suggests there is some underlying doubt? - just my opinion and perhaps I should change my strategy!.Happy & healthy new year everyone.DD

[redartbmud] 31/12/2016 14:00

Lauders

I think that the Clln dividend is safe. The share price rises, the yield falls, based on the share price at that time.
If you have bought at £2.36, or thereabouts, you are locked into the 7.7% yield until you sell. As they increase the dividend, year on year, the return gets that bit better.
Over time, I have bought Clln on the dips and only sold out enough to recover the stake for that trade. Slowly I have increased my holding. As it is not a growth stock, I have 'built in' an element of growth. Laborious but good exercise, pitting your wits against the market.
That is the theory anyway.

red

[hydrus] 31/12/2016 12:18

Absolutely I think this will be helpful and thank you again for organising it. Our approaches aren't dissimilar at all, particularly now I've increased my total number of positions ( with a number of smaller ones rather than just say 6-8 large holdings). Like you I am comfortable having a few very large holdings. Good luck and happy new year to all

[apad] 31/12/2016 12:09

H,
I buy in stages and sell in stages. I also buy an initial holding whilst building up some knowledge of the company and may stop if I feel ambivalent, or I might "buy the dip" and increase slowly. If my research throws up doubts I dump the initial holding. I hope to hold very long term. When the story changes is when I tend to exit in stages. If I am convinced and thoroughly impressed I build up a large holding fairly quickly.
Examples:
Currently selling down TRCS.
Multiple buys and a large holding in BVXP.
Couple of small buys in PTSG, a few more in QTX (held for longer) when weak.
Abandoned on more research is KNOS.
Held for many years is RSW/HLMA.

So, I guess I agree with your comments on the whole. However, an analysis over a year will give more understanding perhaps. My "largest holdings" does tend to cross the year boundary. TRCS replaced by BVXP this year.

Back to year-end tax return!

apad



apad

[hydrus] 31/12/2016 11:02

Worth reconfirming that a single year timeframe is arbitrary and will be more suited to certain styles of investing/trading. For those longer term investors what would be particularly interesting is to see where these selections are in three years time. For example I have no idea whether PVG/EAH share price will increase this year but I am confident that in a few years time they will be multiples higher. They are long term holds for me. However I have less confidence long term in SAT/G4M, not because I expect them to fail but there is more uncertainty and therefore more risk. Conversely they may well do well in short term. I may not hold longer term but we shall see.The value of this exercise for me is less about the in year performance but more the sharing of investment ideas (which have actually been recently made/positions added to). I'm sure everyone will get different value from it.

[apad] 31/12/2016 10:51

Held GNK for a long time, red. Decided the last acquisition was the end of that road - i.e. story has changed. I must look back at the decision.

I keep looking at YNGN as a beer holding (one should really have one). One of those 'always overvalued' shares.
apad

[redartbmud] 31/12/2016 09:30

tlatsatt

Clln:
The pension deficit is a big negative, but it is under control and may improve with inflation and valuations.
The Harvard hedgies will get their nether regions well and truly toasted and move on to other opportunities.
The slightly bigger percentage of revenue is provided by services that generate steady cash flow.
Government construction contracts should come through in 2017.
Hopefully they are on top of the two 'problems' highlighted on the Clln board and the impact on profits limited.
They have a robust business model that has stood them in good stead over the years.
PE and yield could improve from current levels, propelling the share price onwards and upwards.
It gives me a lot of fun and reward to trade the shares on the swings. Whilst the share price has languished in 2016 it has provided a good return. It is not a growth stock but could do well in a difficult 2017.

Gnk
Pubcos like Gnk provide a service to the community. Of it's type it is my investment choice, looking at fundamentals.
Lifestyles have changed and eating out regularly is very popular, particularly in this type of establishment. It caters for all types, families whose lifestyles mean that there is less time to cook at home all week, and wrinklies who meet friends over an inexpensive meal and make it an afternoon of gossip and chat - they have the disposable income to make it possible.
That isn't going to change anytime soon. The current rating is hardly demanding, the share price is modest and there is room for growth in 2017.

Neither will uproot trees, but in what is probably going to be a tough year, their returns could prove to be 'winners'.
Tortoise v hare.

red

[redartbmud] 31/12/2016 09:00

APAD

I very good suggestion. We all come at this from different perspectives and are in different places regarding our investment interests, needs etc.
Commenting on performance and thinking will be very interesting.
The tintins were all over the place last year, sometimes they were more like rabbits caught in the headlights. Will they fare better in 2017?
I am sure that with this eclectic mix of entries we are going to have some fun.

Thanks for your hard work.

Good luck all, Happy and PROSPEROUS New Year.

red

[hydrus] 31/12/2016 08:46

This could be helpful to identify shares to research or act as a reminder to take another look at companies one has previously glanced at. I am more likely to comment on company boards re news. However I do think some kind of self reflection on the choices mid or/and year end would be useful.

[apad] 31/12/2016 08:38

I've checked all entries.
Blimey, seems to have caught the imagination and flushed out some interesting lurkers.

It would make it more of a learning exercise if folks commented on their entries when there is significant news - results, contract wins, whatever, and whether it strengthens or weakens one's view of the company.
Maybe a NANO, deeply discounted placing, for example :-)

Mine don't have a theme, so I can't compare with global trends, but some do...

Entry value is the last Google record - as I say, warts 'n all.

The record is automatic, using StockMarketEye Watchlist, so it is not much work keeping track - just copying the percentage changes to a spreadsheet once a month.

red. I'm assuming that the huge benefit from the O&G accord will keep them honest - must be nuts!

For us pagans Midwinters Day has already marked the turning of the year.
For those of you following a calendar created by a man in a frock - A Happy & Healthy New Year.

apad

ps
The culture on this board is great - concentrates on investing and discusses shares with supporting views/data. There is very little 'confirmation bias', such as is found on single company boards.
If we do get a troll, please do not respond in any way whatsoever.

[apad] 31/12/2016 07:04

mac - already commented on ABC.

apad recent (PTSG/QTX/IGG/BVXP/DOTD)
apad top five comparison only) (FEVR/BOO/ABC/RSW/BVXP)
Attrader (DMGT/IGG/BVXP/IHG/ROR
che7win (IDP/GMS/OSB/IAE/CAKE)
Cragside (AAZ/JOG/RQIH/SOU/W7L)
Dacian (BVXP/TPG/JOG/NTQ/QP)
DiscoDave (AHT/ENQ/RBG/G4M/IGG)
Felix99 (IGG/HUR/PRV/VEC/DGB)
Fozzie (SPRP/CTEC/UAI/IGG/UKOG)
Haywards26 (CLLN/HGM/BLVN/WTG/REDS)
homebrewruss (KAZ/HMI/SOU/FDEV/PVG)
HugePants (RMA/TREE/UAI/ALF/ZMNO)
Hydrus (BVXP/EAH/G4M/SAT/PVG )
Iomax99 (CVSG/PAYS/PVG/VANL/MCS)
janeann (ARC/ACSO/PRSM/SPE/ZTF)
Lauders (BVXP/COA/FFWD/FENR/HOC)
Linhur (RSW/BREE/GHH/FSJ/LTG)
Mozy123 (CARD/HAT/BVIC/GAW/SUS)
Peters spouse (ESP/JIM/RGL/TSTL/WJG)
Piedro (TSTL/SRT/OCN/ CAM/MGNS)
PJ1 (TRD/TST/SPE/PEL/SDI)
Prince7652 (NFC/AMS/GBG/JHD/NUM)
Redartbmud (LLOY/CLLN/GNK/NANO/GHH)
Rjmahan (SIHL/TAU/PIL/DCI/RMA)
RP19 (PTSG/WJG/G4M/HSP/SPRP)
tlst (SUS/CRAW/DOM/ULVR/RB)
Tudes100 (LAM/SUS/ CLG/BVXP/ETO)
Valhamos (ABDP/DOTD/KNOS/PHTM/ZAM]

[lauders] 31/12/2016 01:36

modform - I note your interest in US companies as mentioned in post #7533 among others. If you have any ideas of a "safe" high yielder in the US that I should consider and research I would be grateful for any pointers. I have GSK in my sights for the UK but would love to consider anything else suggested that I may not be aware of from those more familiar with overseas companies. Perhaps you and your colleagues may know of one or two? Much appreciated if you are able to provide any leads. Thank you and all the best for 2017.

[lauders] 31/12/2016 00:50

Hello APAD - Taking advantage of the option to make a change before the deadline. Please would you replace NANO (sorry Red, I just don't trust management & think it may just drag on there this year but hope I am wrong as I actually hold!) with one on my watch list as permitted? The replacement is COA.

Updated entry: Lauders (BVXP/COA/FFWD/FENR/HOC)

Thank you and all the best in 2017 to everyone on this thread. Hope it is a good year for you all!

[thelongandtheshortandthetall] 30/12/2016 20:38

Haha OK Red i see.

Hi Linhur. You might as well start licking your lips and planning your treat. Red has CLLN as one of his choices. I dont know why but Red never seems to tire of them. Hehe. Only messing.

[redartbmud] 30/12/2016 20:21

tlatsatt

Linhur is my mentor. It seems that I have known him since the turn of the century, the one before last! He and his wife are good company and great friends.
Whoever loses will buy dinner, and of course, he will be in the chair.

red

[macmuck] 30/12/2016 20:09

Any idea why the weakness in ABC Apad. Ive just sold some BIOG making a good profit on a tiny slice. Don't ask me why I sold. Like others have written recently, It's an art and not one I'm going to worry about as my PF is tiny for when kids take off.
Biotech has to be a big part of the future, given the way human evolution is going but I honestly can't tell one Co from another given the nature of the business! D'snt help that my economics is gash either:-)
Happy New Year to all..

[thelongandtheshortandthetall] 30/12/2016 19:59

It'll be interesrting to see our cumulative result too i think.
Thanks for your work so far APAD.

Is there dinner prize on offer here?
Have i missed somthing.
Cheers

[apad] 30/12/2016 19:25

apad recent (PTSG/QTX/IGG/BVXP/DOTD)
apad top five comparison only) (FEVR/BOO/ABC/RSW/BVXP)
Attrader (DMGT/IGG/BVXP/IHG/ROR
che7win (IDP/GMS/OSB/IAE/CAKE)
Cragside (AAZ/JOG/RQIH/SOU/W7L)
Dacian (BVXP/TPG/JOG/NTQ/QP)
DiscoDave (AHT/ENQ/RBG/G4M/IGG)
Felix99 (IGG/HUR/PRV/VEC/DGB)
Fozzie (SPRP/CTEC/UAI/IGG/UKOG)
Haywards26 (CLLN/HGM/BLVN/WTG/REDS)
homebrewruss (KAZ/HMI/SOU/FDEV/PVG)
HugePants (RMA/TREE/UAI/ALF/ZMNO)
Hydrus (BVXP/EAH/G4M/SAT/PVG )
Iomax99 (CVSG/PAYS/PVG/VANL/MCS)
janeann (ARC/ACSO/PRSM/SPE/ZTF)
Lauders (BVXP/NANO/FFWD/FENR/HOC)
Linhur (RSW/BREE/GHH/FSJ/LTG)
Mozy123 (CARD/HAT/BVIC/GAW/SUS)
Peters spouse (ESP/JIM/RGL/TSTL/WJG)
Piedro (TSTL/SRT/OCN/ CAM/MGNS)
PJ1 (TRD/TST/SPE/PEL/SDI)
Prince7652 (NFC/AMS/GBG/JHD/NUM)
Redartbmud (LLOY/CLLN/GNK/NANO/GHH)
Rjmahan (SIHL/TAU/PIL/DCI/RMA)
RP19 (PTSG/WJG/G4M/HSP/SPRP)
tlst (SUS/CRAW/DOM/ULVR/RB)
Tudes100 ( LAM/SUS/ CLG/BVXP/ETO)
Valhamos (ABDP/DOTD/KNOS/PHTM/ZAM]

[apad] 30/12/2016 19:23

Done, L.
It's getting out of hand!
apad

[linhur] 30/12/2016 19:18

Apad

I think you have misunderstood my post 7569.

I wanted to change RWS Holdings to LTG.

I think you have dropped RSW (Renishaw) by mistake.

My entries should read RSW/BREE/GHH/FSJ/LTG

Many thanks

Linhur

[fozzie] 30/12/2016 18:33

I see oil between 50 and 60 dollars, the ftse peaking at 7500, the dollar remaining strong and the pound weak with interest rates flat. I think a steady year in prospect but there will be some more M&A activity as foreign companies look to capitalise on the strong dollar. There will be some politics with Trump v everyone else but it's all ebb and flow stuff. Bring it on!

A happy and extremely prosperous New Year to all on here!