Stock of the month - January 2020

Happy New year!

The new year was more of a traditional year as far as rallies go. Santa’s trip to town was full of presents. If you didn’t get a whopper of a profit from mid December to mid January that probably was quite an incredible underachievement, since unless you had a portfolio of cash the stock markets boomed. Then of course everyone takes a breath and then China sneezes. :roll_eyes:

It was because of China’s trade war with the US in the January 2019 dip that markets fell up to 20%. Once again China spoils the party with a killer virus that it has successfully exported worldwide that has dampened the markets enthusiasm. So unless you were investing in a company making surgical masks chances are by the end of the month most holdings you held all ended in a bit of disappointment.

Once again it shows the crucial importance that the Chinese markets play in world markets. Brexit has little impact on world markets when compared with a Chinese lockdown because of a nasty virus. With markets trembling at a China slowdown oil prices plunge as investor speculate a global recession. While a couple of hundred people dying of a virus is a tragedy, more people are killed in car accidents in just a couple of days in China. Markets never react logically and that is how investors can win. So oil stock are down up to 10% since the Iranian missile crisis when investors feared oil instability at the beginning of January.

So with oil already at big lows, I think a FTSE 100 stock like Shell and BP are trading very cheaply. You are not going to see great growth on these stocks, but as far as a reliable blue chip companies go I think they are offering a fairly low entry point.

I expect the markets will pick up once the hubbub dies down and I would imagine that most Chinese stocks are probably being unfairly damaged. The service sector would be hit naturally - but manufacturing industries are unlikely to suffer much in the long term. There is no ban on exporting goods, it’s just the people!

Anyway - so despite ending on a bit of a downer, did you have any picks.

My clear winner was Blue Prism - 57%. this small cap company specialises in software for robotic automation and if you had it 4 or 5 years ago it would have been a 10 bagger.

Beyond meat was hot on its heel with a 45% rise. Reduces my awful losses on this stock. Less said about that the better!

On the naughty step this month Fever Tree has been uprooted rather with a 34% plunge as growth has slowed and investors are reality checking their expectations. Thankfully my holding in this one is minimal. The same cannot be said for NMC which also has had a bit of coughing fit as it dived 20% as the accounting fraud scandal rumbles on.

So let’s hear from all the traders! Thoughts and comments?

Disclaimer
As per Freetrade’s policy always remember to do your own research.
Remember that past performance is no guarantee of future performance.
This is a discussion only thread and is not advice to invest in any particular stock.

December 2019 stock of the month thread

November 2019 stock of the month thread

October 2019 stock of the month thread

September 2019 stock of the month thread

August 2019 stock of the month thread

July 2019 stock of the month thread

June 2019 stock of the month thread

May 2019 stock of the month thread

April 2019 stock of the month thread

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My top 3

Greatland Gold - 62%
Learning Technologies - 44%
Blue Prism - 43%

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Tesla
Ceres
Greatland Gold

Have been my best!

Edit: Circassia too!

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Uber for me…apart from that this month has been horrendous :joy:

Sirius minerals up 49.95% :joy: but still -67% overall loss :grimacing:

Burford Capital down 11%

Maybe I’m being super dense… how would Blue Prism be a 10 bagger if you got it 2 years ago? Am I looking at the right stock?

Well said mate. I have stocks in china on various platforms, so I have taken big short term losses (I hope short term) but I remember all the reasoning behind making the buys in the first place and have bought more. If I’m wrong its an expensive lesson, but I’m convinced I’m not and have full faith in the Chinese market long term

I’ve only.held it a few months. Android only come out less than a year ago anyway. When I looked at the graph it was over a 1000%.

Oh sorry should have wrote 5 years ago.

Editor post. Ta :+1:

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Thankfully I decided to invest in Games Workshop, and it’s 7.62% up for January.

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A down month for me, first time in quite a while. Mostly Coronavirus (still don’t think we’ve hit the bottom yet). Earnings went my way overall, but there were a few misses.

Biggest loser was Craneware (-25%). A return to growth but revenue flat, and retention KPI not as strong as previous. [Request 👋] Craneware - CRW

Biggest winner was probably Supermicro (+17%), as a result of their NASDAQ relisting. I bought just after some bullshit Bloomberg reporting late 2018, and will likely sell soon. Earnings next week.

Which platforms? I hold some Chinese companies which are have listings on American exchanges, but none which are solely China listed.

I wanted to buy into Transsion, who are up 60% this month! https://finance.yahoo.com/quote/688036.SS

The biggest winner this month was clearly Coronavirus.

Japanese facemask manufacturer Kawamoto were up 8x. Which is insane, surely they are supply constrained? You can’t just pump out 8x of anything in an instant can you?

https://finance.yahoo.com/quote/3604.T

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Biggest winners for me in Jan:

  • Shopify: +14.19%
  • Games Workshop: +9.40%
  • Okta: +9.16%

Biggest losers:

  • Texas Instruments: -6.88%
  • Spotify: -6.81%
  • Disney: -6.67%
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Well said. My portfolio was up about 7/8% and now it’s 1.5%. Not what was needed

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Ceres
Greatland Gold
Circassia

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Interested in why you picked these three? They’ve all had a great month!

Wanted to diversify my portfolio away from tech. I’m still not fully there yet, with just over 50% in tech alone. So I bought into Circassia which was 1.) cheap, 2.) news was favourable, 3.) financials weren’t awry (I got burned earlier investing into a medical company whose financials I didn’t check - literally a day later news broke out about debt problems and its stock dropped 30%). Greatland Gold, same thing. Seemed to be the most promising mining stock on Freetrade atm, and the news is favourable. 40% gains from it! As for Ceres, that was random. I invested a few pounds and it was the highest % gain in my portfolio, beating all the tech stocks I owned and otherwise. So I kept dumping more money in and it’s doing well. Also consulted a few engineering friends of mine. They said batteries were overhyped, but the tech Ceres was producing was decent and had commercial viability.

This wouldn’t be indivior would it?

NMC Health

1 Like