Activity Oct 2009

First a bit of advertising - I get commission if you sign up - otherwise please carry on reading the content Bullionvault - Buy gold online - quickly, safely and at low prices

Possible shorts:-

Anite - software - topish (current 34, shorting at 46/52/58/60 [max allowed])
Cisco - networking - recently rallied 30%+ (current 2352, shorting at 2650/2951/3598)
Dana Petroleum - p/e too high at 35 (current 1345, shorting at 1580/1680/1880)
Enterprise Inns - pubs - directors selling, debt high - can't short
WH Smith - p/e at 12 and what does it do well? (current 447, shorting at 470/480/520)
Methanex - methanol producer - US - risen too high? can't.
Serco - outsourcer - market favourite, over valued and possible risk of lost UK gov business because of cutbacks (but that's also why market likes it - outsourcing replacing gov work). Short above 570p. (current 500, shorting at 550/620/670)

Possible buys:-

Brit Insurance - p/e <10> 7.5%, NAV discount 14% - buy at 170p ISA, 151p, 131p, 111p, 91p spread bet
Standard Life - insurers, good company, expanding abroad, solvent, buy at 165p ISA
Accsys - wood processing, allows softwood to replace hardwood with non-toxic process, good cash reserves, but some risk of partners defaulting/building collapse, ISA 0.55 euros
Vivendi - low p/e, yield>7%, diversifying away from GBP (Euros-French), buy at 17 Euros (not limit on ISA)
Katanga Mining - Cobalt & copper miner - cobalt stocks very low (used by military, car batteries), Canada listing (not limit on ISA)
Geovic Mining - Cobalt, nickel, managenese miner - some risk - so buy at a discount - holds cash reserves - buy at C$0.52 (not limit on ISA)
Commerce Resources - Tantalum miner - rare metal essential in advanced tech - hold supply outside Congo, ethical and risk reasons to avoid Congo, very experienced and financially strong (not limit on ISA, can't spread bet)
Atlantis (LSE:AJG) - Jap small stocks - diversify from GBP - often book value of these firms is way above share values, and fund is at discount to shares (18%). (can't spread bet)
Prospect (LSE:PJF) - Jap small stocks - diversify from GBP - often book value of these firms is way above share values, and fund is at discount to shares (27%). (not possible on ISA, can't spread bet).