# Starting the rationalisation



## DionM

So I've decided I need to rationalise my portfolio.  I have a little too many explorers, and a bit top heavy in some stocks.

So I'm going to revisit some of my stocks first up, as a way of decided what to do with them.


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## DionM

I bought into SBM as an investment in gold, in Australia.  They are indeed producing, and are exploring more; which is a good sign to me to keep them as a long term investment.  The SP has also gone up, and I'm happy with that, so I think I'll keep.

The same can be said for TAM - though they're not doing as much exploring but they have started producing.  SP has been rather static, but that's okay - I think this is a long term keeper.

VERDICT:
Keep SBM.
Keep TAM.


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## DionM

I missed the boat on this.  It was a spec play that I didn't keep a close enough eye on, and I missed the peak I should have sold at.

The SP has done nothing of late, really.  While there has been some announcements, nothing promising.

I'll hold for another month, if no major changes, I'll sell.

Verdict:
- Sell in 1mth if no major developments


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## DionM

I bought into this one mainly due to good dividends.  However I think I have too many of this stock, the recent SP jitters have made me a little nervous about having so much in this one stock, and the stronger AUD may cause them some difficulties.

I'm going to sell about 1/4rd of my holdings.  Leaves enough to give a nice dividend, and reduces my exposure to about the same as my other larger investments.

Verdict
Sell 1/4 when SP returns to original buy price


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## DionM

I miscalcuated a little when buying MAP.  It is the biggest single holding I have (typo when working out the cost to buy).

I'm going to sell about 1/4 of my holdings.  I'd like to keep it until dividend time, but I don't know if I can hold that long (need to free up some cash as well).

While the SP has been good to me, I'm a bit wary and will cash in while I can.  I also now have more diversity in this sector (originally it was my only holding).

Verdict
Keep if possible until ex-div, otherwise sell 1/4


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## DionM

I thought I should add in here about some recent buys.

BLD (in at 6.77)
I originally had a small holding of BLD.  With the SP sinking and reaching an apparent bottom, I topped up.  I see a future for BLD with infrastructure spending in Australia, as well as housing.

IAG (in at 4.71)
I didn't have any exposure to the insurance sector.  Based on recent SP performance, and the fact that the dividend return is quite good, I decided to invest a small parcel in IAG.  It was either IAG or Suncorp, in the end IAG got the nod.

RML (in at 0.405)
Another miner.  I know I shouldn't be buying more, but I got tempted.  They are just starting production, so at least they're not a pure explorer or spec play!  I hold big hopes for the future of this company.

IRL (SPP at 0.20)
I already hold IRL, currently at a small loss.  But this is a spec player I think will go places, and it aligns with my desire to gain some exposure to foreign markets (I already have investments in China and India equities through AGF and INES, so this complements those).  I bought into the SPP as it is at a slight discount to the market.  Obviously by buying more, it is one I will keep.


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## vishalt

bld is a pretty nice choice, is that a long term asset to your portfolio?


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## DionM

vishalt - Yes it is.


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## DionM

Well I offloaded 1/5th of my MAP holdings today.  I needed the cash for other investments.  I don't think I'll offload any more of MAP; they do have a reasonable dividend return and the long term uptrend of the graph is promising.  I wish I could keep more, but I wanted to keep some diversity, it was just a bit too top heavy for my liking (and top heavy from the initial investment, not top heavy due to SP growth).


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## DionM

Another explorer turned miner, looks like all systems go for production ealry next year.

I expect big things from this company, and since they're an australian miner (focussed solely on Nickel) I'm keeping them.  Their side interest in Geothermal is also interesting; I have some interest in pursuing those type of stocks so that also holds attraction.

I topped up today on AGM.


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## DionM

Been a bit disappointed with this one.

They posted a maiden profit recently, which was a good outcome.  But they also still seem to be in explorer mode, pursuing other options, and funding the exploring from the gold profits.

As I already have a couple of other gold producers that I have more confidence in, I'll probably wait for an opportunity and sell my stake in AAR (probably on the next swing up).

Verdict:
Sell on next price jump.


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## DionM

This is a hard one to call.

I'm tempted to dump it as it's still an explorer, and SP growth has been minimal.  However, it does seem to have good promise (don't they all!).  Mkt Cap is also reasonable, I think, at 65M.

But I don't know how long it will be till they start producing, and since I want to eliminate all but the most certain explorers to become producers, I think I'll sell up.  I'll wait till the next round of news though, just to see.

Verdict
SELL if next news is not something fantastic


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## DionM

Whoops ... been a while between drinks!

Since my last post, the following has happened:
- SOLD MLS, RMG, MKY, MGO as part of getting rid of spec stocks.
- SOLD BPO ... going nowhere fast.

All sold either at small profits or breakeven.  

Since then I also got out of BEN after only holding for a short while.  Made a profit ... something strange going on with the SP.  I notice I could've held on longer but eh ... I was losing confidence so got out early.  I used the proceeds of the sale to purchase SUN, which I was initially going to buy but the SP was a touch high, now that SUN seems to have reached it's bottom, it represents good value IMHO (esp with the attractive dividend).  

I also bought some JMS, for better or worse.  My other ore spec player (YML, now BMR) has done well so we'll see how JMS plays out.

And like many others, I watched MHL soar high and then crash down again.  Hmmm.  Thankfully I bought some time ago before the hysteria set in for the massive SP surge so I'm still trading at a very very slight profit 

I also added SPN to my watchlist today.  If the SP dips before it goes ex-div, I may buy in ... but I note that it is facing a regulatory reset soon so I might just hold off until that is sorted out (early next year).    The buy side is also quite deep and may drag the SP down.


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## DionM

Well it has been quiet!  Due to the market volatility I've been sitting tight.

Today, I sold out of SBM and AGM.  Both at a modest profit.  Why?  

SBM I had been thinking of doing so for some time.  Having missed 2 past opportunities I decided to quit today while the price was up.   

AGM ... I have been mulling this over for some time.  Like the company (more than SBM!), good prospects but the current SP just doesn't seem sustainable.  I posted my reasons in the AGM thread.

Anyway, if both drop back to near my original buy prices, I will be back in in a flash.


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## DionM

So a bit of action today.

I sold out of Metgasco.  I already have one CSM player (AOE) and am happy with them.  I may investment more into AOE or look elsewhere - not sure.

I also picked up a small position in TZ Limited.  I missed it's initial ramp in price by a few days last year and have been wanting in ever since.  It appeals to me from a tech and a $$$ perspective - I'm happy for it to be a long term investment.

I've also been eying off Woolworths as it drops in price.  Getting close to my entry point - again for a long term investment.


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