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10 Aug | An Overdue Update

Sorry it’s been a while since I’ve posted, what can I say, it’s summer where I’m at and our little portfolio has being just dandy on its own without my meddling hand.

There’s been some chunky news floating about, so let’s get down to the nitty gritty.

Remember Cosalt – our provider of safety products and services to the marine, industrial and offshore oil and gas markets – that we took a stake in back in June. Remember how they halved in price almost overnight. Remember the expletives I used describing them in the coming weeks (only joking), we’ll things aren’t as glum as they seem, for holders at any rate.

Following an open offer of 6.8173 new ordinary shares for every existing share held at 5 pence per share, yep 5 pence per share, we’re able to top up with a further 5,663 shares for a total outlay of a touch over 280 quid. At today’s price (16.25 pence) those shares would cost us in the region of 920 quid. Okay, so there’s dilution to consider (although this has probably been all but factored into the price already) and I’m sure the price isn’t going to rocket in the short to mid term, but our reasons for our initial purchase haven’t changed, so we’ll hold for a while and see what comes of Cosalt.

Lloyds Bank has gone from strength to strength in the past few weeks on the back of a shrewd appointment or two and the assumption that the worst of its bad debts are behind it. Again, a happy hold.

And what a month we’ve had with our Chinese equities: China Biodiesel’s graph looks like a silhouette of Everest and we’re stopping off for a little oxygen at the Hillary Step. We got in about a month ago at 6.6 pence a share and last week it peaked at 20 pence, before retracing back down to around the 14 pence mark today. Lucky I’ve got a head for heights!

And whilst West China Cement’s rise has been a little less spectacular, it’s still put on a quid from the £1.70 to £2.70 mark in that same period.

Renesola is holding its own in a level of support around the £1.60 to £1.70 mark. To be honest I’m looking for a dip here, an opportunity to top back up a little. With Renesola I’m sure it’s just a matter of time.

Eros International – our Indian film producer and distributor – continues to gain momentum on the back of a high grossing opening last week with a few more releases in the pipeline. Since our purchase in early June this year, Eros have sung and danced their way to a healthy 61% gain. Long live Bollywood!

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