Today we take a look at the final three stocks in the portfolio in more depth. We shall be looking at what stocks I hold in my portfolio and why? We shall also be looking at price targets and stop losses on each stock.
Wolfson (WLF) http://www.wolfson.co.uk/
It seems Wolfson Microelectronics cannot put a foot wrong these days. The recent full-year results from the chipmaker easily beat City forecasts. It delivered a 40% rise in 2005 sales, to $166m (£94m), and a mighty 156% jump in pre-tax profits to $38m. Wolfson designs, makes and sells microchips, which go inside consumer electronic devices across the portable, consumer audio and imaging markets.
The company was spun out of research at Edinburgh University more than 20 years ago and boasts an awesome growth record. Since 2001 alone it has grown its revenues 10 times.
Looking ahead into 2006, Wolfson expects growth to be driven by the areas of online content (downloading audio and video), home entertainment (flat screen TVs, wireless hi-fi, distributed audio & video), mobile TV (downloading on to phones, currently big in Japan), automotive devices (improved in-car digital audio and video), satellite & GPS. A notable recent success is the multimedia phone market, which has grown by 100% to become Wolfson's third largest product category. Another significant revenue stream for the coming year will be Blu-Ray.
I bought Wolfson stock at 200p in October 2005. The stock is now at 430p. My price target for this stock is 600p. The stock was very close to reaching this exit point a couple of days ago but following a broker re-rating it has fallen sharply. The stock will re-bound back up to the 500p mark and then push onto the 600p point. My stop loss level is 20% below the current share price.
Tullow Oil (TLW) http://www.tullowoil.com/
Tullow Oil is an oil and gas explorer with exploration licences throughout Europe, South Asia and Africa. In 2004 it acquired Energy Africa in a massive $500m takeover deal.
Tullow's share price has risen over 40% in the last year, more or less in line with the sector. Performance continues to be underpinned by strong oil & gas prices. There is near certainty that there is much more to come in terms of growth potential in all areas. Tullow Oil is also a strong takeover target.
Tullow Oils geographic diversity and solid growth in new business is continuing with a particularly strong African side. Concerns about recent tax increases in the North Sea should be played down as any shortfall here is only likely to be offset by strong growth from its expansion in Africa & Asia, Gabon, Uganda & Bangladesh in particular.
I bought Tullow Oil at 240p in mid November 2005. The stock is currently at 380p. My price target for this stock is originally 400p. However, because this particular stock is so strong in terms of growth and a prospective bid target, I shall simply set another target and continue to hold once the 400p target has been breached.
Victoria Oil and Gas (VOG) http://www.victoriaoilandgas.com
This particular stock is a risky buy
Victoria Oil and Gas commenced trading on AIM on 27/07/2004 after raising £9.78 million through the issue of 48,902,500 shares @ 20p.
VOG was established with the strategy of acquiring quality oil and gas assets with a particular focus on the Former Soviet Union. Within one month of listing Victoria had acquired interests in two exploration licences in the UK, one in Kazakhstan and the rather exciting West Medvezhye project in Western Siberia, Russia.
The potential of the West Medvezhye gas and gas condensate field is unquestioned. It lies on the southwestern limb of the massive Medvezhye field in the Yamal Peninsular, only 130 Km east of the World’s largest producing gas field, Urengoy. According to BP’s 2004 Statistical Review, global gas production totalled 2,618.5 billion cubic metres in 2003. Of this, Gazprom’s five major Yamal gas fields (Urengoy, Medvezhye, Yamburg, Zapolyarnoye and Komsomolskoye) produced 433.5 billion cubic metres of gas or 16.6% of the World’s production. Oil Production in these parts has doubled during the last ten years and is expected to double again by 2010.
VOG themselves have stated that the field alone is a potential for a company maker and they aspire to being a mid-cap producer (£500m +). Also their Board and Management are widely experienced in the FSU resources sector and are well respected in the financial community.
VOG recently announced via an RNS that the Kemerkol Oil Project, Kazakhstan has a total proven C1 category reserves of 8.7
million barrels of oil and probable C2 reserves of 26.3 million barrels
VOG has also signed a protocol with Gazprom unit Nadymgazprom (NGP), outlining terms for future talks on the distribution of gas through Gazprom's transportation system from VOG's West Medvezhye project located in Western Siberia, Russia. Gazprom subsidiary NGP has agreed that, following a successful well test and reserve reclassification, it will initiate negotiations with Victoria for the transportation, storage and marketing of gas from the project.
If that was not enough, DeGolyer & MacNaughton (independent reserve auditors) as part of an updated feasibility study on the West Medvezhye project in Western Siberia report prospective recoverable resource volumes of: 5.5 trillion cubic feet of gas, 146 million barrels of gas condensate, 25 million barrels of oil. Total prospective recoverable hydrocarbon resource volume of 1.1 billion barrels of oil equivalent.
These estimated prospective recoverable resources are dependent on successful discovery and development of the prospects evaluated.
I bought this stock at exactly 100p mid November and I continue to hold to this day despite the risk involved. I am currently awaiting news on Well 106 and Well 104. The price target for this stock is 350p-400p. The stop loss for this stock is 150p.
Other portfolio stocks:
The two stocks below are short-term holds only and not used for longer-term investments.
Marchpole (MPH) Bought at 14p. Target 30p.
Vislink (VLK) Bought at 56p. Target 70p.
....and finally, a stock that was in my portfolio until yesterday. Burren Energy (BUR) Burren Energy has been a true star of the portfolio but I sold the stock yesterday as it breached my stop loss. However, when I feel the time is right to buy the stock back I shall let you know right here via the Footsieblog.
The portfolio round up and its performance today:
CSR (CSR) up 5.75% - 69.00p at 1269.00p
The Carphone Warehouse (CPW) down 0.16% - 0.25p at 310.75p
Fenner (FENR) up 1.07% - 2.25p at 21.75p
Wolfson (WLF) down 1.47% - 6.25p at 419.50p
Tullow Oil (TLW) down 0.52% - 2.00p at 379.25p
Victoria Oil and gas (VOG) up 3.21% - 6.50p at 209.00p
Marchpole (MPH) unchanged at 21.50p
Vislink (VLK) up 0.46% - 0.25p at 54.25p
